The Vermont Statutes Online
Uniform Commercial Code
2-702. Seller's remedies on discovery of buyer's insolvency
(1) 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 article (§ 2-705).
(2) 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.
(3) The seller's
right to reclaim under subsection (2) is subject to the rights of a buyer in
ordinary course or other good faith purchaser under this article (§ 2-403).
Successful reclamation of goods excludes all other remedies with respect to
them. (Amended 1993, No. 158 (Adj. Sess.) § 9, eff. Jan. 1, 1995.)