Merchant lessee's duties as to rightfully rejected goods.
400.2A-511. (1) Subject to any security interest of alessee (Section 400.2A-508(5)), if a lessor or a supplier has noagent or place of business at the market of rejection, a merchantlessee, after rejection of goods in his possession or control,shall follow any reasonable instructions received from the lessoror the supplier with respect to the goods. In the absence ofthose instructions, a merchant lessee shall make reasonableefforts to sell, lease, or otherwise dispose of the goods for thelessor's account if they threaten to decline in value speedily.Instructions are not reasonable if on demand indemnity forexpenses is not forthcoming.
(2) If a merchant lessee (subsection (1)) or any otherlessee (Section 400.2A-512) disposes of goods, he is entitled toreimbursement either from the lessor or the supplier or out ofthe proceeds for reasonable expenses of caring for and disposingof the goods and, if the expenses include no dispositioncommission, to such commission as is usual in the trade, or ifthere is none, to a reasonable sum not exceeding ten percent ofthe gross proceeds.
(3) In complying with this section or section 400.2A-512,the lessee is held only to good faith. Good faith conducthereunder is neither acceptance or conversion nor the basis of anaction for damages.
(4) A purchaser who purchases in good faith from a lesseepursuant to this section or section 400.2A-512 takes the goodsfree of any rights of the lessor and the supplier even though thelessee fails to comply with one or more of the requirements ofthis Article.
Merchant lessee's duties as to rightfully rejected goods.
400.2A-511. (1) Subject to any security interest of alessee (Section 400.2A-508(5)), if a lessor or a supplier has noagent or place of business at the market of rejection, a merchantlessee, after rejection of goods in his possession or control,shall follow any reasonable instructions received from the lessoror the supplier with respect to the goods. In the absence ofthose instructions, a merchant lessee shall make reasonableefforts to sell, lease, or otherwise dispose of the goods for thelessor's account if they threaten to decline in value speedily.Instructions are not reasonable if on demand indemnity forexpenses is not forthcoming.
(2) If a merchant lessee (subsection (1)) or any otherlessee (Section 400.2A-512) disposes of goods, he is entitled toreimbursement either from the lessor or the supplier or out ofthe proceeds for reasonable expenses of caring for and disposingof the goods and, if the expenses include no dispositioncommission, to such commission as is usual in the trade, or ifthere is none, to a reasonable sum not exceeding ten percent ofthe gross proceeds.
(3) In complying with this section or section 400.2A-512,the lessee is held only to good faith. Good faith conducthereunder is neither acceptance or conversion nor the basis of anaction for damages.
(4) A purchaser who purchases in good faith from a lesseepursuant to this section or section 400.2A-512 takes the goodsfree of any rights of the lessor and the supplier even though thelessee fails to comply with one or more of the requirements ofthis Article.
Merchant lessee's duties as to rightfully rejected goods.
400.2A-511. (1) Subject to any security interest of alessee (Section 400.2A-508(5)), if a lessor or a supplier has noagent or place of business at the market of rejection, a merchantlessee, after rejection of goods in his possession or control,shall follow any reasonable instructions received from the lessoror the supplier with respect to the goods. In the absence ofthose instructions, a merchant lessee shall make reasonableefforts to sell, lease, or otherwise dispose of the goods for thelessor's account if they threaten to decline in value speedily.Instructions are not reasonable if on demand indemnity forexpenses is not forthcoming.
(2) If a merchant lessee (subsection (1)) or any otherlessee (Section 400.2A-512) disposes of goods, he is entitled toreimbursement either from the lessor or the supplier or out ofthe proceeds for reasonable expenses of caring for and disposingof the goods and, if the expenses include no dispositioncommission, to such commission as is usual in the trade, or ifthere is none, to a reasonable sum not exceeding ten percent ofthe gross proceeds.
(3) In complying with this section or section 400.2A-512,the lessee is held only to good faith. Good faith conducthereunder is neither acceptance or conversion nor the basis of anaction for damages.
(4) A purchaser who purchases in good faith from a lesseepursuant to this section or section 400.2A-512 takes the goodsfree of any rights of the lessor and the supplier even though thelessee fails to comply with one or more of the requirements ofthis Article.
