3 imputed notice: the actual or constructive notice acquired in the course of an agency by an agent acting for the defendant in the purchase where the information acquired is material to the transaction and the agent has a duty to pass it on.
(60) Equitable notice, as discussed in Part II, encompasses actual notice, constructive notice and imputed notice. In relation to claims of knowing receipt and knowing assistance, the categories of actual notice and constructive notice were famously (and controversially) restated as five levels of 'knowledge' according to the 'Baden scale'.
Equally uncertain, although not as often addressed, is whether imputed notice should suffice for knowing receipt liability.
One reason why there is uncertainty as to whether constructive notice and imputed notice suffice for knowing receipt liability is because there are two divergent rationales for recipient liability that run through the case law: (66)
In contemporary contexts defined by a regulatory statute, some courts have imputed notice
of facts known by a principal downward to an agent when the principal has a duty to transmit all material facts to the agent and the statute's regulatory purpose would be undermined by limited disclosure to agents.