Minor

In this appeal, in the context of the Commercial Code, we are called upon to resolve a dispute over possession of a BMW automobile. Such dispute is between defendant’s attaching creditor and a third party claimant who delivered the BMW to defendant. The dispute arose when plaintiff, the attaching creditor, levied on the BMW, purportedly owned by defendant, an automobile dealer. The third party claimant-seller then asserted ownership of the BMW. As we shall explain, if the three prerequisites specified in section 2326, subdivision (3) of the California Uniform Commercial Code have been met, the transaction will be deemed a “sale or return” with respect only to the claim of an attaching or lien creditor of the dealer. This obtains regardless of the intended nature of the transaction between the dealer and the seller, with the result that goods in the dealer’s possession will be subject to the claims of the dealer’s attaching creditors. Therefore, because the three prerequisites noted were present here, the attaching creditor of defendant-dealer must prevail over the third party claimant-seller who delivered the BMW to defendant-dealer. Accordingly, we shall reverse with…