Merchant Buyer's Duties as to Rightfully Rejected Goods

  1. Law
  2. Georgia Code
  3. Commercial Code
  4. Sales
  5. Breach, Repudiation, and Excuse
  6. Merchant Buyer's Duties as to Rightfully Rejected Goods

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  1. Subject to any security interest in the buyer (subsection (3) of Code Section 11-2-711), 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.
  2. When the buyer sells goods under subsection (1) of this Code section, 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 10 percent on the gross proceeds.
  3. In complying with this Code 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.

(Code 1933, § 109A-2 - 603, enacted by Ga. L. 1962, p. 156, § 1.)

RESEARCH REFERENCES

Am. Jur. 2d.

- 67 Am. Jur. 2d, Sales, §§ 656-658.

6 Am. Jur. Pleading and Practice Forms, Commercial Code, § 2:506.

U.L.A.

- Uniform Commercial Code (U.L.A.) § 2-603.

ALR.

- Liability of purchaser under conditional-sale contract, or one claiming under him, as for conversion, 73 A.L.R. 799.


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