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Normalizer
November 19, 2000, 02:39 AM
Hypothetical situation:

You purchase a class III weapon at the local gunshop, paying up front, and all the paperwork has been handled locally and mailed to the ATF, who have cashed your check - so you are just waiting for the paperwork to come back.

Before you get approved to receive your class III item the dealer loses his FFL. (sigh!)

What recourse if any would the customer have? Would you be out the money spent, have to arrange the transfer through another dealer (and another $200 transfer tax), or ????

Byron
November 19, 2000, 09:31 AM
If a transfer that is in process is cancelled, ATF refunds your $200 (takes about 6 weeks to get the money). I don't know if you can cancel the transfer as the transferee, or if that has to be done by the transferor. You might call them to find out in this case, since the tranferor is no longer an SOT.

The touger question is what happens to the former dealer's stock of C3 weapons, including the one you already paid for. He can no longer possess them on a Form 3, since he's no longer a C3 dealer. Does ATF come in and confiscate them? If that is what happens, where do the guns go from there? This may be the part worth worrying about, not the $200.

Normalizer
November 19, 2000, 02:37 PM
The dealer has the weapons, at least mine. Just waiting for paperwork to clear. Charges have been filed but until convicted the license remains in effect, am hoping the dealer is in the clear and that everything will work out in the end, but at this point I'm out over a grand in a worst case scenario.

James K
November 19, 2000, 03:07 PM
This would probably not help a bit, but the dealer and customer essentially entered into a contract under which the dealer would sell a gun to the customer. If, for any reason, the dealer cannot make the sale, he would have to refund any "up front" money. If the dealer is unable to do so, the customer can sue, at least to establish his right to whatever money may be available. If the situation is more than hypothetical, consult an attorney.

Jim

ctdonath
November 19, 2000, 10:53 PM
Sounds to me like the gun is yours - you paid for it, all the paperwork is done, you're just waiting for BATF permission to take it. I'd say the sale has already been completed and he's just holding on to it.

Best solution is call BATF and ask.