2010 Pennsylvania Code
Title 13 - COMMERCIAL CODE
Chapter 27 - Remedies
2702 - Remedies of seller on discovery of insolvency of buyer.

     § 2702.  Remedies of seller on discovery of insolvency of buyer.
        (a)  Right to refuse or stop delivery.--Where the seller
     discovers the buyer to be insolvent he may refuse delivery
     except for cash including payment for all goods theretofore
     delivered under the contract and stop delivery under this
     division (section 2705).
        (b)  Reclamation of goods on credit.--Where the seller
     discovers that the buyer has received goods on credit while
     insolvent he may reclaim the goods upon demand made within ten
     days after the receipt, but if misrepresentation of solvency has
     been made to the particular seller in writing within three
     months before delivery the ten-day limitation does not apply.
     Except as provided in this subsection the seller may not base a
     right to reclaim goods on the buyer's fraudulent or innocent
     misrepresentation of solvency or of intent to pay.
        (c)  Limitations on right of reclamation.--The right of the
     seller to reclaim under subsection (b) is subject to the rights
     of a buyer in ordinary course or other good faith purchaser
     under this division (section 2403). Successful reclamation of
     goods excludes all other remedies with respect to them.
     (Nov. 26, 1982, P.L.696, No.201, eff. 180 days)

        Cross References.  Section 2702 is referred to in section
     2705 of this title.