Bazzanella

This appeal concerns the application of the “Personal Property Brokers Law” codified as division 9, sections 22000-22653 of the Financial Code. Hereafter all statutory citations will be to that code.

Defendant Austin J. Bell was the president and 50 percent shareholder of King Way Container Service, Inc. (King Way). King Way was in the business of selling box containers to the United States Government and companies “backed by” the government (buyers). Around July of 1965 the company was short of operating capital and “looking for a source of cash.” Its accountant discussed King Way’s problem with his mother-in-law and a family friend, respectively plaintiffs and respondents Popovich and Bazzanella. These ladies had cash which they wished to invest. An oral agreement was reached July 7, 1965, under which they would purchase from *562 King Way invoices (accounts receivable) for goods delivered to the buyers, at a discount of 2 percent or 2Vz percent of the amounts due thereon. The invoices were ordinarily paid within 60 days. King Way agreed that as checks covering such invoices were received they would be endorsed and delivered to plaintiffs. Plaintiffs and King Way…