355.2-603 Merchant buyer's duties as to rightfully rejected goods.
(1)
(2)
(3)
Subject to any security interest in the buyer (subsection (3) of KRS 355.2-711),
when the seller has no agent or place of business at the market of rejection a
merchant buyer is under a duty after rejection of goods in his possession or control
to follow any reasonable instructions received from the seller with respect to the
goods and in the absence of such instructions to make reasonable efforts to sell
them for the seller's account if they are perishable or threaten to decline in value
speedily. Instructions are not reasonable if on demand indemnity for expenses is not
forthcoming.
When the buyer sells goods under subsection (1), he is entitled to reimbursement
from the seller or out of the proceeds for reasonable expenses of caring for and
selling them, and if the expenses include no selling commission then to such
commission as is usual in the trade or if there is none to a reasonable sum not
exceeding ten percent (10%) on the gross proceeds.
In complying with this section the buyer is held only to good faith and good faith
conduct hereunder is neither acceptance nor conversion nor the basis of an action
for damages.
Effective: July 1, 1960
History: Created 1958 Ky. Acts ch. 77, sec. 2-603, effective July 1, 1960.
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