§490:2-711 - Buyer's remedies in general; buyer's security interest in rejected goods.
§490:2-711 Buyer's remedies in general;
buyer's security interest in rejected goods. (1) Where the seller fails
to make delivery or repudiates or the buyer rightfully rejects or justifiably
revokes acceptance then with respect to any goods involved, and with respect to
the whole if the breach goes to the whole contract (section 490:2-612), the
buyer may cancel and whether or not he has done so may in addition to
recovering so much of the price as has been paid:
(a) "Cover" and have damages under the next
section as to all the goods affected whether or not they have been identified
to the contract; or
(b) Recover damages for nondelivery as provided in
this article (section 490:2-713).
(2) Where the seller fails to deliver or
repudiates the buyer may also:
(a) If the goods have been identified recover them as
provided in this article (section 490:2-502); or
(b) In a proper case obtain specific performance or
replevy the goods as provided in this article (section 490:2-716).
(3) On rightful rejection or justifiable
revocation of acceptance a buyer has a security interest in goods in his
possession or control for any payments made on their price and any expenses
reasonably incurred in their inspection, receipt, transportation, care and
custody and may hold such goods and resell them in like manner as an aggrieved
seller (section 490:2-706). [L 1965, c 208, §2-711; HRS §490:2-711]
Case Notes
Since defendant did not justifiably revoke defendant's
acceptance, defendant did not have a §490:2-711 security interest in the goods
and was not authorized to retain them as security. 10 H. App. 368, 874 P.2d
1100.