§ 6A-2-702 - Seller's remedies on discovery of buyer's insolvency. - Rhode-island Statutes

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SECTION 6A-2-702

§ 6A-2-702 Seller's remedies on discoveryof buyer's insolvency. – (1) Where the seller discovers the buyer to be insolvent he or she may refusedelivery except for cash including payment for all goods theretofore deliveredunder the contract, and stop delivery under this chapter (§ 6A-2-705).

(2) Where the seller discovers that the buyer has receivedgoods on credit while insolvent he or she ay reclaim the goods upon demand madewithin ten (10) days after the receipt, but if misrepresentation of solvencyhas been made to the particular seller in writing within three (3) monthsbefore delivery the ten (10) day limitation does not apply. Except as providedin this subsection the seller may not base a right to reclaim goods on thebuyer's fraudulent or innocent misrepresentation of solvency or of intent topay.

(3) The seller's right to reclaim under subsection (2) issubject to the rights of a buyer in ordinary course or other good faithpurchaser or lien creditor under this chapter (§ 6A-2-403). Successfulreclamation of goods excludes all other remedies with respect to them.

State Codes and Statutes

Statutes > Rhode-island > Title-6a > Chapter-6a-2 > 6a-2-702

SECTION 6A-2-702

§ 6A-2-702 Seller's remedies on discoveryof buyer's insolvency. – (1) Where the seller discovers the buyer to be insolvent he or she may refusedelivery except for cash including payment for all goods theretofore deliveredunder the contract, and stop delivery under this chapter (§ 6A-2-705).

(2) Where the seller discovers that the buyer has receivedgoods on credit while insolvent he or she ay reclaim the goods upon demand madewithin ten (10) days after the receipt, but if misrepresentation of solvencyhas been made to the particular seller in writing within three (3) monthsbefore delivery the ten (10) day limitation does not apply. Except as providedin this subsection the seller may not base a right to reclaim goods on thebuyer's fraudulent or innocent misrepresentation of solvency or of intent topay.

(3) The seller's right to reclaim under subsection (2) issubject to the rights of a buyer in ordinary course or other good faithpurchaser or lien creditor under this chapter (§ 6A-2-403). Successfulreclamation of goods excludes all other remedies with respect to them.

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State Codes and Statutes

Statutes > Rhode-island > Title-6a > Chapter-6a-2 > 6a-2-702

SECTION 6A-2-702

§ 6A-2-702 Seller's remedies on discoveryof buyer's insolvency. – (1) Where the seller discovers the buyer to be insolvent he or she may refusedelivery except for cash including payment for all goods theretofore deliveredunder the contract, and stop delivery under this chapter (§ 6A-2-705).

(2) Where the seller discovers that the buyer has receivedgoods on credit while insolvent he or she ay reclaim the goods upon demand madewithin ten (10) days after the receipt, but if misrepresentation of solvencyhas been made to the particular seller in writing within three (3) monthsbefore delivery the ten (10) day limitation does not apply. Except as providedin this subsection the seller may not base a right to reclaim goods on thebuyer's fraudulent or innocent misrepresentation of solvency or of intent topay.

(3) The seller's right to reclaim under subsection (2) issubject to the rights of a buyer in ordinary course or other good faithpurchaser or lien creditor under this chapter (§ 6A-2-403). Successfulreclamation of goods excludes all other remedies with respect to them.