A seller's right to reclaim goods from an insolvent buyer is subject to the rights of which other party?
Explanation
This question highlights the limits on a seller's remedies. While a seller can demand the return of goods sold on credit to a buyer who turns out to be insolvent, this right is cut off if the buyer has already resold the goods to an innocent third party (a good faith purchaser). This protects the stability of commercial transactions.
Other questions
Under the Uniform Commercial Code (UCC), what is the definition of 'good faith' for a merchant in a sales or lease contract?
What is the basic obligation of the seller or lessor in performing a sales or lease contract?
According to the UCC, if a sales contract does not specify a place of delivery, where must the goods be made available to the buyer?
What does the UCC's perfect tender rule state regarding a seller's or lessor's performance?
When a seller tenders nonconforming goods, under what condition can the seller exercise the right to cure after the original time for performance has expired?
In an installment contract, under what circumstances can a buyer or lessee reject an installment?
If an agreed-on manner of delivery becomes commercially impracticable through no fault of either party, what is the seller's obligation under UCC 2-614(1)?
If one party to a sales contract has reasonable grounds to believe the other party will not perform, what right does the UCC grant the concerned party?
Unless the parties have agreed otherwise, the buyer's right to inspect goods before payment is considered what kind of condition in relation to the seller's right to enforce payment?
What action by a buyer, aside from stating acceptance or failing to reject, constitutes acceptance of goods under a sales contract?
When a party commits anticipatory repudiation of a contract, what options does the nonbreaching party have?
If a buyer breaches a sales contract while the goods are still in the seller's possession, what is the seller's ordinary measure of damages if they resell the goods?
A seller can stop delivery of goods in transit if the buyer is in breach but not insolvent only if the quantity of goods shipped is at least what amount?
When a seller becomes insolvent within ten days after receiving the first payment for identified goods still in their possession, what right does the buyer have?
A buyer's right to obtain substitute goods from another seller when the original seller breaches the contract is known as what?
Under what condition can a buyer or lessee exercise the right to replevy goods?
If a buyer rightfully revokes acceptance of nonconforming goods, they may pursue remedies as if the goods had been what?
A buyer who has accepted nonconforming goods must notify the seller of the breach within what timeframe to be able to pursue any remedy?
When parties to a sales contract agree that a remedy is exclusive, what happens if that remedy fails in its essential purpose?
What is the basic principle behind a letter of credit transaction?
According to the text, a commercial unit is defined as a unit of goods that, by commercial usage, is viewed as a 'single whole' for purposes of sale and cannot be divided without doing what?
If a buyer rightfully rejects goods, and the seller has no agent at the place of rejection, what is the duty of a merchant buyer regarding perishable goods?
How long must the parties to a sales contract wait for performance before a contract is breached if no time for performance is stated?
If a buyer accepts a shipment of goods and later discovers a defect, under what circumstances can the acceptance be revoked?
What is the consequence for a buyer who fails to notify the seller of a breach within a reasonable time after discovering a defect in accepted goods?
When a contract for a sale of goods contains a limitation on consequential damages for personal injuries from consumer goods, how is this limitation viewed under the UCC?
If a seller or lessor repudiates a contract or fails to deliver goods, the buyer's measure of damages is the difference between the contract price and the market price at what specific time?
In the case of Maple Farms, Inc. v. City School District of Elmira, what was the court's primary reason for not excusing the milk supplier from performance under the doctrine of commercial impracticability?
If a seller's capacity to perform is only partially affected by an unforeseen event, what is the seller's duty under UCC 2-615(b)?
If an unexpected event totally destroys identified goods before the risk of loss passes to the buyer and through no fault of either party, what is the outcome of the contract under the UCC?
How long must a seller of consumer goods wait to dispose of repossessed collateral if the consumer-debtor has paid 60 percent of the purchase price on a PMSI?
In a destination contract, the seller agrees to deliver conforming goods to the buyer at a particular destination. The seller must also provide the buyer with any documents of title necessary to enable the buyer to obtain delivery from whom?
If a buyer receives nonconforming goods but does not disclose the nature of the defect to the lessor, what is a potential consequence for the buyer?
If a seller is unable to resell specially manufactured goods after a buyer's breach and sues for the contract price, what must the seller do with the goods?
According to the decision in Jauregui v. Bobb’s Piano Sales & Service, Inc., if a seller delivers a defective piano but it is still worth as much as the buyer paid, is the buyer entitled to a remedy?
How many opportunities must a seller typically be given to remedy a defect in a new automobile under most state lemon laws before the buyer is entitled to a new car or refund?
What is the consequence for a buyer or lessee who fails to obtain cover after a seller's breach?
The UCC states that remedies in a sales or lease contract are cumulative. What does this mean for an innocent party to a breached contract?
If a seller or lessor is unable to resell or dispose of goods and sues for the contract price, what can they do if they find a buyer before collecting the judgment?
What is the maximum commission a merchant buyer can take from the proceeds of reselling perishable goods they rightfully rejected, according to the text?
The proper measure of damages for a seller is lost profits, including overhead, rather than the difference between contract and market price, in which situation?
What is the maximum amount of consumer debt for purchasing luxury items that is generally considered non-dischargeable in bankruptcy, according to the text?
Which of the following is NOT one of the seller's required actions under a shipment contract?
If a buyer makes a partial acceptance of a delivery, what is the smallest portion of the goods they can accept?
If a repudiating party retracts their repudiation, what is the legal status of the contract?
What is the usual time limit for demanding the return of goods sold on credit to a buyer who the seller discovers is insolvent?
Under the CISG, how does a definitive expression of acceptance that contains additional, non-material terms affect contract formation?
If a buyer, in breach, has not paid for specially manufactured pens inscribed with their business name, and the seller, Gem Point, Inc., cannot resell them, what is the seller's primary remedy?
In a situation where the buyer wrongfully rejects goods, a seller's incidental damages might include which of the following costs?