Arkansas Code
Part 5 - Default
§ 4-2A-511. Merchant lessee's duties as to rightfully rejected goods

(1) Subject to any security interest of a lessee (§ 4-2A-508(5)), if a lessor or a supplier has no agent or place of business at the market of rejection, a merchant lessee, after rejection of goods in his or her possession or control, shall follow any reasonable instructions received from the lessor or the supplier with respect to the goods. In the absence of those instructions, a merchant lessee shall make reasonable efforts to sell, lease, or otherwise dispose of the goods for the lessor's account if they threaten to decline in value speedily. Instructions are not reasonable if on demand indemnity for expenses is not forthcoming.
(2) If a merchant lessee (subsection (1)) or any other lessee (§ 4-2A-512) disposes of goods, he or she is entitled to reimbursement either from the lessor or the supplier or out of the proceeds for reasonable expenses of caring for and disposing of the goods and, if the expenses include no disposition commission, to such commission as is usual in the trade, or if there is none, to a reasonable sum not exceeding 10 percent (10%) of the gross proceeds.
(3) In complying with this section or § 4-2A-512, the lessee is held only to good faith. Good faith conduct hereunder is neither acceptance or conversion nor the basis of an action for damages.
(4) A purchaser who purchases in good faith from a lessee pursuant to this section or § 4-2A-512 takes the goods free of any rights of the lessor and the supplier even though the lessee fails to comply with one (1) or more of the requirements of this chapter.

Structure Arkansas Code

Arkansas Code

Title 4 - Business and Commercial Law

Subtitle 1 - Uniform Commercial Code

Chapter 2A - Leases

Part 5 - Default

§ 4-2A-501. Default — Procedure

§ 4-2A-502. Notice after default

§ 4-2A-503. Modification or impairment of rights and remedies

§ 4-2A-504. Liquidation of damages

§ 4-2A-505. Cancellation and termination and effect of cancellation, termination, rescission, or fraud on rights and remedies

§ 4-2A-506. Statute of limitations

§ 4-2A-507. Proof of market rent — Time and place

§ 4-2A-508. Lessee's remedies

§ 4-2A-509. Lessee's rights on improper delivery — Rightful rejection

§ 4-2A-510. Installment lease contracts — Rejection and default

§ 4-2A-511. Merchant lessee's duties as to rightfully rejected goods

§ 4-2A-512. Lessee's duties as to rightfully rejected goods

§ 4-2A-513. Cure by lessor of improper tender or delivery — Replacement

§ 4-2A-514. Waiver of lessee's objections

§ 4-2A-515. Acceptance of goods

§ 4-2A-516. Effect of acceptance of goods — Notice of default — Burden of establishing default after acceptance — Notice of claim or litigation to person answerable over

§ 4-2A-517. Revocation of acceptance of goods

§ 4-2A-518. Cover — Substitute goods

§ 4-2A-519. Lessee's damages for non-delivery, repudiation, default, and breach of warranty in regard to accepted goods

§ 4-2A-520. Lessee's incidental and consequential damages

§ 4-2A-521. Lessee's right to specific performance or replevin

§ 4-2A-522. Lessee's right to goods on lessor's insolvency

§ 4-2A-523. Lessor's remedies

§ 4-2A-524. Lessor's right to identify goods to lease contract

§ 4-2A-525. Lessor's right to possession of goods

§ 4-2A-526. Lessor's stoppage of delivery in transit or otherwise

§ 4-2A-527. Lessor's rights to dispose of goods

§ 4-2A-528. Lessor's damages for non-acceptance, failure to pay, repudiation, or other default

§ 4-2A-529. Lessor's action for the rent

§ 4-2A-530. Lessor's incidental damages

§ 4-2A-531. Standing to sue third parties for injury to goods

§ 4-2A-532. Lessor's rights to residual interest