Remedies for Sellers

Question 1

When can a seller withhold delivery of goods?

Answer 1

1. If the buyer fails to pay.
2. If the seller discovers the buyer is insolvent.

Question 2

When can a seller reclaim goods delivered to an insolvent buyer?

Answer 2

The seller may reclaim goods by making a demand within 10 days after the buyer’s receipt, except when the buyer has made a written misrepresentation of solvency within three months before delivery.

Question 3

What happens if a buyer pays with a dishonored check?

Answer 3

The seller may reclaim goods subject to the rights of a good-faith purchaser.

Question 4

When is a seller entitled to the full contract price?

Answer 4

1. When the buyer has accepted goods.
2. When conforming goods are lost or damaged after risk of loss has passed to the buyer.
3. When identified goods cannot be resold.

Question 5

What must a seller prove to recover lost profits as a lost volume seller?

Answer 5

That the seller could have supplied both the breaching buyer and the resale purchaser