336.2-702 SELLER'S REMEDIES ON DISCOVERY OF BUYER'S INSOLVENCY.
(1) Where the seller discovers the buyer to be insolvent the seller may refuse delivery except
for cash including payment for all goods theretofore delivered under the contract, and stop
delivery under this article (section
(2) Where the seller discovers that the buyer has received goods on credit while insolvent
the seller may reclaim the goods upon demand made within ten days after the receipt, but if
misrepresentation of solvency has been made to the particular seller in writing within three
months before delivery the ten 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 under this article (section
reclamation of goods excludes all other remedies with respect to them.
History: 1965 c 811 s 336.2-702; 1969 c 621 s 1; 1986 c 444