When in a farmers market, I am not above taking a shriveled pepper off the floor or the trash or even the counter on occasion - I do ask when it is on the counter. I let it dry well, and then remove the seeds, dry them on a plate for a couple of weeks, and they are good to go.
When I like the flavor, I also secretly remove seeds from my dinner plate, such as the Thai Prik in Bangkok, and dry and plant them. Obviously, if the seeds have been cooked, they are dead, but often I find that the seeds germinate perfectly well. I also take seeds from condiments on occasion, and they also germinate.
I also take fresh peppers from salad buffets, such as the Malawi Kambuzi, and do the same.
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