§ 6A-2-702. Seller’s remedies on discovery of buyer’s insolvency.
(1) Where the seller discovers the buyer to be insolvent he or she may refuse delivery except for cash including payment for all goods theretofore delivered under the contract, and stop delivery under this chapter (§ 6A-2-705).
(2) Where the seller discovers that the buyer has received goods on credit while insolvent he or she may reclaim the goods upon demand made within ten (10) days after the receipt, but if misrepresentation of solvency has been made to the particular seller in writing within three (3) months before delivery the ten (10) day limitation does not apply. Except as provided in this subsection the seller may not base a right to reclaim goods on the buyer’s fraudulent or innocent misrepresentation of solvency or of intent to pay.
(3) The seller’s right to reclaim under subsection (2) is subject to the rights of a buyer in ordinary course or other good faith purchaser or lien creditor under this chapter (§ 6A-2-403). Successful reclamation of goods excludes all other remedies with respect to them.
History of Section.P.L. 1960, ch. 147, § 1.
Structure Rhode Island General Laws
Title 6A - Uniform Commercial Code
Section 6A-2-701. - Remedies for breach of collateral contracts not impaired.
Section 6A-2-702. - Seller’s remedies on discovery of buyer’s insolvency.
Section 6A-2-703. - Seller’s remedies in general.
Section 6A-2-705. - Seller’s stoppage of delivery in transit or otherwise.
Section 6A-2-706. - Seller’s resale including contract for resale.
Section 6A-2-707. - “Person in the position of a seller.”
Section 6A-2-708. - Seller’s damages for nonacceptance or repudiation.
Section 6A-2-709. - Action for the price.
Section 6A-2-710. - Seller’s incidental damages.
Section 6A-2-711. - Buyer’s remedies in general — Buyer’s security interest in rejected goods.
Section 6A-2-712. - “Cover” — Buyer’s procurement of substitute goods.
Section 6A-2-713. - Buyer’s damages for nondelivery or repudiation.
Section 6A-2-714. - Buyer’s damages for breach in regard to accepted goods.
Section 6A-2-715. - Buyer’s incidental and consequential damages.
Section 6A-2-716. - Buyer’s right to specific performance or replevin.
Section 6A-2-717. - Deduction of damages from the price.
Section 6A-2-718. - Liquidation or limitation of damages — Deposits.
Section 6A-2-719. - Contractual modification or limitation of remedy.
Section 6A-2-720. - Effect of “cancellation” or “rescission” on claims for antecedent breach.
Section 6A-2-721. - Remedies for fraud.
Section 6A-2-722. - Who can sue third parties for injury to goods.
Section 6A-2-723. - Proof of market price — Time and place.
Section 6A-2-724. - Admissibility of market quotations.
Section 6A-2-725. - Statute of limitations — Contracts for sale — Breach of warranty.