Sales and Leases | 244
b. Replevin as to Goods Shipped under Reservation The buyer has a right of replevin as to identified goods shipped under reservation, provided “satisfaction of the security interest in them [provided by § 2-505] has been made or tendered.” [U.C.C. § 2-716(3) (1951); 2 Hawkland UCC Series § 2-716:2, Westlaw (database updated June 2021).] Special rules apply to consumer goods—goods purchased primarily for personal, family, or household purposes. [U.C.C. § 2-716(3) (1951).] c. Nonexclusive Nature of Replevin as a Remedy The remedy of replevin applies in addition to both (1) the buyer’s right to recover the goods under § 2-502 and (2) specific performance. [2 Hawkland UCC Series § 2-716:2, Westlaw (database updated June 2021); Buyer’s Right to Recover the Goods under § 2-502, infra ; Buyer’s Right to Specific Performance, supra .] 7. Buyer’s Right to Recover the Goods under § 2-502 Under § 2-502, the buyer may acquire the goods from the seller, although the goods were not shipped, if (1) the buyer has paid all or part of the goods’ price, (2) the buyer has a special property interest (insurable interest) in the goods under § 2-501, (3) the buyer has made and kept good a tender of any unpaid portion of the goods’ price, (4) the goods are identified to the contract, and (5) one of two additional, alternative requirements is met. First, the seller becomes insolvent within 10 days after receiving the first installment on the goods’ purchase price. Second, the goods are consumer goods, and the seller either repudiates the contract or fails to deliver as the contract requires. Again, consumer goods are goods bought primarily for personal, family, or household purposes. [U.C.C. § 2-502 (1951); 2 Hawkland UCC Series § 2- 502:2, Westlaw (database updated June 2021); Insurable Interest in Goods, supra .] a. Result if Buyer Identified the Goods to the Contract If the buyer is the one who identified the goods to the contract, then the buyer may recover the goods under § 2-502 only if the goods conform to the contract. This rule’s purpose is to prevent unjust enrichment to the buyer if, for instance, the recovered goods are of substantially greater quality or quantity than the goods contemplated in the contract. [U.C.C. § 2-503(3), cmt. 4 (1951); 2 Hawkland UCC Series § 2-502:2, Westlaw (database updated June 2021).] b. Requirement That Seller Become Insolvent within 10 Days after Receiving the First Installment toward the Price If the basis for the buyer’s right to recover the goods is the seller’s insolvency, the seller must become insolvent within 10 days after receiving the first installment toward the goods’ price. If the seller is already insolvent upon receiving that first installment, then the
Made with FlippingBook - Online Brochure Maker