§ 6A-2.1-511 - Merchant lessee's duties as to rightfully rejected goods.
SECTION 6A-2.1-511
§ 6A-2.1-511 Merchant lessee's duties asto rightfully rejected goods. – (1) Subject to any security interest of a lessee (§ 6A-2.1-508(5)), if alessor or a supplier has no agent or place of business at the market ofrejection, a merchant lessee, after rejection of goods in his or her possessionor control, shall follow any reasonable instructions received from the lessoror the supplier with respect to the goods. In the absence of thoseinstructions, a merchant lessee shall make reasonable efforts to sell, lease,or otherwise dispose of the goods for the lessor's account if they threaten todecline in value speedily. Instructions are not reasonable if on demandindemnity for expenses is not forthcoming.
(2) If a merchant lessee (subsection (1)) or any other lessee(§ 6A-2.1-512) disposes of goods, he or she is entitled to reimbursementeither from the lessor or the supplier or out of the proceeds for reasonableexpenses of caring for and disposing of the goods and, if the expenses includeno disposition commission, to such commission as is usual in the trade, or ifthere is none, to a reasonable sum not exceeding 10 percent of the grossproceeds.
(3) In complying with this section or § 6A-2.1-512, thelessee is held only to good faith. Good faith conduct hereunder is neitheracceptance or conversion nor the basis of an action for damages.
(4) A purchaser who purchases in good faith from a lesseepursuant to this section or § 6A-2.1-512 takes the goods free of anyrights of the lessor and the supplier even though the lessee fails to complywith one or more of the requirements of this chapter.