Legal Question in Product Liability in Pennsylvania

we sold a stolen dirtbike,unknowingly

Are we responsible for returning the money to the buyer of my son's $1500 dirtbike? We bought the bike 3 years ago and had no idea we were buying a stolen dirtbike. We bought it without a title and we sold it without a title. Now the seller is taking us to small claims to get their $1500 back. The sellers were riding it in an illegal area and it got impounded by the police. That is how they found out it had been stolen years ago. They called us and wanted their money back. We don't have the money, anyway. Will a court force us to return the money? The police told us it exchanged hands about 5 times..They had called us initially and we told them were the guy lived that we bought it from....Do we have to continue suing, too? Please help.


Asked on 10/27/06, 3:11 pm

1 Answer from Attorneys

Roger Traversa Arjont Group (Law Office of Roger Traversa)

Re: we sold a stolen dirtbike,unknowingly

You asked about your liability where you bought and sold a stolen dirtbike.

The law isn't crystal clear on this area. But it is clear enough to advise. No, as long as you had no knowledge that the vehicle was stolen then you likely can't be compelled to refund the buyer's money.

On the other hand, if the buyer can _prove_ that you knew it was stolen or should have known that it was stolen, then they may be able to collect. But they would also have to show that they did not have the same level of knowledge, or why not.

Generally you are what is known as an bona fide purchaser for value. As was the subsequent purchaser. Think of it like a game of musical chairs. The person caught with the bike when the music stops is the loser.

The law does this to prevent the situation that you described (suing back through the chain of custody). In any eventuality then there will likley be a loser unless you can come back to a culpable party. It may as well be the one at the tail end who likely also is taking the smallest hit (depreciation) and where it is easiest to place. It may help to think of it the other way, if there was a reward of $2,000 for return of the bike would they give the additional $500 to you?

Regards,

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Answered on 10/27/06, 4:31 pm


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