554.13511 Merchant lessee’s duties as to rightfully rejected goods. 1. Subject to any security interest of a lessee (section 554.13508, subsection 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 the merchant lessee’s possession or control, shall follow anyreasonable 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 or supplier’s account if they threatento decline in value speedily. Instructions are not reasonable if on demand indemnity forexpenses is not forthcoming. 2. If a merchant lessee (subsection 1) or any other lessee (section 554.13512) disposes of goods, the lessee is entitled to reimbursement either from the lessor or the supplier or outof the proceeds for reasonable expenses of caring for and disposing of the goods and, if theexpenses include no disposition commission, to such commission as is usual in the trade, orif there is none, to a reasonable sum not exceeding ten percent of the gross proceeds. 3. e goods and, if theexpenses include no disposition commission, to such commission as is usual in the trade, orif there is none, to a reasonable sum not exceeding ten percent of the gross proceeds. 3. In complying with this section or section 554.13512, the lessee is held only to good faith. Good faith conduct hereunder is neither acceptance or conversion nor the basis of an actionfor damages. 4. A purchaser who purchases in good faith from a lessee pursuant to this section or section 554.13512 takes the goods free of any rights of the lessor and the supplier even thoughthe lessee fails to comply with one or more of the requirements of this Article. 94 Acts, ch 1052, §63Referred to in §554.13305, 554.13512 Sat Dec 23 11:03:31 2023 Iowa Code 2024, Section 554.13511 (24, 0)
Iowa Legal Code