Credit, information, and trust in the law of sales: The credit seller's right of reclamation

Section 2-702 of the Uniform Commercial Code (UCC) deals with the credit seller's right to reclaim goods sold to an insolvent purchaser. Of course, most sellers of goods on trade credit would prefer payment to their return of their goods. But they would far prefer return to an action for the pr...

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Bibliographic Details
Published in:UCLA law review 1996-12, Vol.44 (2), p.247
Main Author: Garvin, Larry T
Format: Article
Language:English
Subjects:
Article 2
Buy sell agreements
Contract law
Uniform Commercial Code-US
Online Access:Get full text
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Summary:Section 2-702 of the Uniform Commercial Code (UCC) deals with the credit seller's right to reclaim goods sold to an insolvent purchaser. Of course, most sellers of goods on trade credit would prefer payment to their return of their goods. But they would far prefer return to an action for the price, particularly if the buyer, already insolvent by definition, is going to go bankrupt before the action for the price is reduced to judgment and made enforceable through levy. Reclamation is thus appealing in the abstract to an unsecured seller. Unsecured trade credit is vital to the economy. The current draft of Article 2 of the UCC contains some moderate expansions of reclamation.
ISSN:0041-5650
1943-1724