§2-702. Seller's remedies on discovery of buyer's insolvency

Link to law: http://legislature.vermont.gov/statutes/section/09A/002/00702
Published: 2015

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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.)