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Texas Business & Commerce Code - Section 2.603. Merchant Buyer's Duties As To Rightfully Rejected Goods

Legal Research Home > Texas Laws > Business & Commerce Code > Texas Business & Commerce Code - Section 2.603. Merchant Buyer's Duties As To Rightfully Rejected Goods

§ 2.603. MERCHANT BUYER'S DUTIES AS TO RIGHTFULLY 
REJECTED GOODS.  (a) Subject to any security interest in the buyer 
(Subsection (c) of Section 2.711), when the seller has no agent or 
place of business at the market of rejection a merchant buyer is 
under a duty after rejection of goods in his possession or control 
to follow any reasonable instructions received from the seller with 
respect to the goods and in the absence of such instructions to make 
reasonable efforts to sell them for the seller's account if they are 
perishable or threaten to decline in value speedily.  Instructions 
are not reasonable if on demand indemnity for expenses is not 
forthcoming.
	(b)  When the buyer sells goods under Subsection (a), he 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 the trade or if there is none to a reasonable sum not 
exceeding ten per cent on the gross proceeds.
	(c)  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 for damages.

Acts 1967, 60th Leg., p. 2343, ch. 785, § 1, eff. Sept. 1, 1967.           

Last modified: August 11, 2007