My business wholesales iPhones in California and there's a topic of hot debate.
All purchases we make are business to business with all serial numbers on the invoices. Upon cross checking these serial numbers with a database called checkmend.com (industry leading tool) that checks the authenticity and background of device we discover that some of the devices are blacklisted by their original carriers. This typically happens due to someone losing their device, having it stolen, or not paying their bill and therefore defaulting (fraud), and then reporting it to the carrier. People will resell these devices to companies that buy them and then companies will invoice us these devices. We always turn down the blacklisted units but are curious of two things:
If the checkmend report shows that a device is blacklisted by it's carrier does that constitute as stolen property? Or does it need to have a theft or police report attached to it to be legitimately considered stolen and prosecutable?
If a device we purchase shows up clean and clear and we resell it to either business or end consumer and it later goes blacklisted, is the report and our due diligence in checking it in the beginning enough to protect ourselves legally? (We would obviously accept a return and refund for the device.)