Well, I guess it depends on how you word it. I suppose you could say that a third party buyer isn't subject
to the agreement, technically, but he
IS subject to the laws that govern the disposition of the property that is covered by the agreement.
The original buyer is legally obligated to explain the restrictions to the next buyer, which includes the legal obligation to explain them to the next buyer, who is then legally obligated to explain the restrictions to the next buyer, ad infinitum.
Now, if a seller fails to do that, and so the subsequent buyer doesn't know about it, the buyer has something of a legal defense, but he's going to have to make that defense in court, if the feds decide to push it. Of course, ignorance of the law isn't a very good defense in most cases.
The seller will be in hot water and have NO defense.
The exact wording from the EUC form (DLA FORM 1822):
SECTION Ill. UNDERSTANDING AND NOTIFICATIONS
1 . The use, disposition, export and re-export of this property is subject to all applicable U.S. Laws and Regulations, including but not limited to the Arms Export Control Act (22 USC 2751 et seq.); Export Administration Act of 1979 (50 USC App.2401 et seq.) as continued under Executive Order 12924; International Traffic in Arms Regulations (22 CFR 120 et seq.);
Export Administration Regulations (15 CFR 730 et seq.); Foreign Assets Control Regulations (31 CFR 500 et seq.) and the Espionage Act (18 USC 793 et seq.); which, among other things, prohibit:
A. The making of false statements and concealment of any material information regarding the use or disposition, export or re-export of the property and
B. Any use, disposition, export or re-export of the property not permitted by applicable statute and regulation.
...
3. Transfers of MLI and CCLI property by purchasers/bidders are subject to the requirements of the appropriate licensing department or agency. In many cases, an export license or other authorization may be required. With respect to MLI, registration of the purchaser's/bidder's business with the Department of the State may also be required. It is the responsibility of the purchaser/bidder to determine what the applicable requirements may be and to obtain all necessary authorization or approvals.
4. When MLI/CCLI property is transferred, the information in this form regarding the above laws and regulations must be passed to the subsequent purchaser/receiver. Records of Resale in buyer's possession should be available for Trade Security Controls Office review, if requested.
...
SECTION IV. CERTIFICATION STATEMENT TO BE SIGNED BY BIDDER AT TIME OF RESPONSE TO IFB
…
2. I acknowledge having been advised that the MLI/CCLI property I purchased is controlled by the U.S. Government and in many cases cannot be transferred (exported, sold or given) to a foreign country, a non-U.S. Citizen/National or a non-Permanent US Resident without a valid State/Commerce Department export authorization. Should I transfer this property to a foreign country, a non-U.S. Citizen/National or a non-Permanent US Resident, I will obtain any required authorization before making such transfers. I will not transfer this property to countries, regimes and nationals targeted under the sanctions program administered by the U.S. Treasury Department's Office of Foreign Assets Control.
…
The material purchased is subject to all of the various restrictions, and that is true no matter who buys it or what he knows about it.
You can read the whole thing at
this link, if you like. This is the actual form from the government site, not just the GL site.
There's a good discussion on it at
this thread. Lots of surprising (to me) stories of having been randomly contacted by the government, checking up on the property. Sometimes in person.
The important thing to understand is this:
There are laws and regulations that restrict what can be done with some government-auctioned equipment, and those laws and regulations are in force whether the owner signed any agreement or not.
It's not simply a matter of being party to a contract (agreement) or not.
Frankly, if I had understood all this, I might not have bought my truck. My trailer was sold without an EUC requirement, but since then, they are selling the same trailer WITH the EUC requirement. I'm frankly not sure where that leaves me, legally, on my trailer.
