554.2603 Merchant buyer’s duties as to rightfully rejected goods. 1. Subject to any security interest in the buyer (section 554.2711, subsection 3), when the seller has no agent or place of business at the market of rejection a merchant buyer is undera duty after rejection of goods in the merchant buyer’s possession or control to follow anyreasonable instructions received from the seller with respect to the goods and in the absenceof such instructions to make reasonable efforts to sell them for the seller’s account if theyare perishable or threaten to decline in value speedily. Instructions are not reasonable if ondemand indemnity for expenses is not forthcoming. 2. When the buyer sells goods under subsection 1, that buyer is entitled to reimbursement from the seller or out of the proceeds for reasonable expenses of caring for and selling them,and if the expenses include no selling commission then to such commission as is usual in thetrade or if there is none to a reasonable sum not exceeding ten percent on the gross proceeds. 3. In complying with this section the buyer is held only to good faith and good faith conduct hereunder is neither acceptance nor conversion nor the basis exceeding ten percent on the gross proceeds. 3. In complying with this section the buyer is held only to good faith and good faith conduct hereunder is neither acceptance nor conversion nor the basis of an action fordamages. [C66, 71, 73, 75, 77, 79, 81, §554.2603]2015 Acts, ch 29, §93Referred to in §554.2602, 554.2604 Sat Dec 23 01:50:46 2023 Iowa Code 2024, Section 554.2603 (25, 0)
Iowa Legal Code