Straw purchase
A straw purchase is any purchase where the buyer is not eligible to own the purchased item according to the law and therefore purchases the item through a proxy buyer. Although it usually refers to the purchase of illegal firearms, the term can refer to almost anything bought or sold illegally.
In the United States, straw purchases are a felony violation of the Gun Control Act of 1968 for both the straw purchaser (who can also be charged with lying on Federal Form 4473) and the ultimate possessor.
Many gun shops have jointly participated in programs to deter such purchases.
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Straw purchase other than firearms
A straw purchase can also be defined as any purchase, where the purchaser is knowingly purchasing an item or service for someone who is not able to complete such a transaction. In the realm of a car purchase, a straw purchase is prevalent as well. If a certain individual does not have the appropriate credit to purchase an automobile, based on his or her credit alone, he or she may solicit a friend or relative to purchase the automobile for the use of another. As it is legal to purchase a vehicle for personal use, if one were to purchase a vehicle under the guise of personal use, and to turn the use of the vehicle in a full-time capacity to another, that would also be considered an example of a straw purchase.
The above example, however, is not a straw purchase under the definition given at the beginning of this page. There is no law prohibiting a person from purchasing a product for another with a lower credit rating. The purchaser is liable for the credit on the purchase should the recipient default, but is not guilty of any felony. The felony only occurs when the purchaser attempts to hide the existence of the vehicle's recipient. Credit lenders are trying to change this, however, and have had some success in a few US states.
A straw purchase can also connote a purchase dealing with a wide range of dealings; including but not limited to: housing, tobacco, alcohol, prostitution, drugs, firearms, automobiles and dealings with credit, such as loans and credit cards.
If intent can be proven, this action is illegal and punishable according to state and federal law.
Famous straw purchases
- Robyn Anderson for Eric Harris and Dylan Klebold, perpetrators of the Columbine High School massacre.
- Sarah Brady for James Brady Jr.[1]
