2012 Pennsylvania Consolidated Statutes
Title 13 - COMMERCIAL CODE
Chapter 2A5 - Default
Section 2A511 - Merchant lessee's duties as to rightfully rejected goods

     § 2A511.  Merchant lessee's duties as to rightfully rejected
                goods.
        (a)  General rule.--Subject to any security interest of a
     lessee (section 2A508(e)), if a lessor or a supplier has no
     agent or place of business at the market of rejection, a
     merchant lessee, after rejection of goods in his possession or
     control, shall follow any reasonable instructions received from
     the lessor or the supplier with respect to the goods. In the
     absence of those instructions, a merchant lessee shall make
     reasonable efforts to sell, lease or otherwise dispose of the
     goods for the lessor's account if they threaten to decline in
     value speedily. Instructions are not reasonable if on demand
     indemnity for expenses is not forthcoming.
        (b)  Reimbursement of expenses and commission.--If a merchant
     lessee (subsection (a)) or any other lessee (section 2A512)
     disposes of goods, he is entitled to reimbursement either from
     the lessor or the supplier or out of the proceeds for reasonable
     expenses of caring for and disposing of the goods and, if the
     expenses include no disposition commission, to such commission
     as is usual in the trade, or if there is none, to a reasonable
     sum not exceeding 10% of the gross proceeds.
        (c)  Good faith conduct.--In complying with this section or
     section 2A512 (relating to lessee's duties as to rightfully
     rejected goods), the lessee is held only to good faith. Good
     faith conduct hereunder is neither acceptance or conversion nor
     the basis of an action for damages.
        (d)  Rights of good faith purchaser.--A purchaser who
     purchases in good faith from a lessee pursuant to this section
     or section 2A512 takes the goods free of any rights of the
     lessor and the supplier even though the lessee fails to comply
     with one or more of the requirements of this division.

        Cross References.  Section 2A511 is referred to in sections
     2A305, 2A512 of this title.