Section 45.02.702. Seller's remedies on discovery of buyer's insolvency.

   (a) If the seller discovers the buyer is insolvent, the seller may refuse delivery except for cash including payment for all goods previously delivered under the contract, and stop delivery under AS 45.02.705.
   (b) If the seller discovers that the buyer has received goods on credit while insolvent, the seller may reclaim the goods upon demand made within 10 days after the receipt, but if misrepresentation of solvency has been made to the particular seller in writing within three months before delivery the 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.
   (c) The seller's right to reclaim under (b) of this section is subject to the rights of a buyer in ordinary course or other good faith purchaser or lien creditor under AS 45.02.403. Successful reclamation of goods excludes all other remedies with respect to them.

Authorities

45.02.705

Notes

References

AS 45.02.705 Seller's stoppage of delivery in transit or otherwise.

History

(Sec. 2.702 ch 114 SLA 1962)