(a)Except as otherwise provided
in subsection (b) of this section, a warehouse's lien may be enforced by public or
private sale of the goods, in bulk or in packages, at any time or place and on any
terms that are commercially reasonable, after notifying all persons known to claim
an interest in the goods. The notification must include a statement of the amount
due, the nature of the proposed sale, and the time and place of any public sale. The
fact that a better price could have been obtained by a sale at a different time or in a
method different from that selected by the warehouse is not of itself sufficient to
establish that the sale was not made in a commercially reasonable manner. The
warehouse sells in a commercially reasonable manner if the warehouse sells the
goods in the
Free access — add to your briefcase to read the full text and ask questions with AI
(a) Except as otherwise provided
in subsection (b) of this section, a warehouse's lien may be enforced by public or
private sale of the goods, in bulk or in packages, at any time or place and on any
terms that are commercially reasonable, after notifying all persons known to claim
an interest in the goods. The notification must include a statement of the amount
due, the nature of the proposed sale, and the time and place of any public sale. The
fact that a better price could have been obtained by a sale at a different time or in a
method different from that selected by the warehouse is not of itself sufficient to
establish that the sale was not made in a commercially reasonable manner. The
warehouse sells in a commercially reasonable manner if the warehouse sells the
goods in the usual manner in any recognized market therefore, sells at the price
current in that market at the time of the sale, or otherwise sells in conformity with
commercially reasonable practices among dealers in the type of goods sold. A sale
of more goods than apparently necessary to be offered to ensure satisfaction of the
obligation is not commercially reasonable, except in cases covered by the
preceding sentence.
(b) A warehouse may enforce its lien on goods, other than goods stored by a
merchant in the course of its business, only if the following requirements are
satisfied:
(1) All persons known to claim an interest in the goods are notified.
(2) The notification includes an itemized statement of the claim, a
description of the goods subject to the lien, a demand for payment within a
specified time not less than ten days after receipt of the notification, and a
conspicuous statement that unless the claim is paid within that time, the goods will
be advertised for sale and sold by auction at a specified time and place.
(3) The sale conforms to the terms of the notification.
(4) The sale is held at the nearest suitable place to where the goods are held
or stored.
(5) After the expiration of the time given in the notification, an advertisement
of the sale must be published once a week for two weeks consecutively in a
newspaper of general circulation where the sale is to be held. The advertisement
must include a description of the goods, the name of the person on whose account
the goods are being held, and the time and place of the sale. The sale must take
place at least fifteen days after the first publication. If there is no newspaper of
general circulation where the sale is to be held, the advertisement must be posted
at least ten days before the sale in not fewer than six conspicuous places in the
neighborhood of the proposed sale.
(c) Before any sale held pursuant to this section, any person claiming a right
in the goods may pay the amount necessary to satisfy the lien and the reasonable
expenses incurred in complying with this section. In that event, the goods may not
be sold but must be retained by the warehouse subject to the terms of the receipt
and this article.
(d) A warehouse may buy at any public sale held pursuant to this section.
(e) A purchaser in good faith of goods sold to enforce a warehouse's lien
takes the goods free of any rights of persons against which the lien was valid,
despite the warehouse's noncompliance with this section.
(f) A warehouse may satisfy its lien from the proceeds of any sale pursuant
to this section but shall hold the balance, if any, for delivery on demand to any
person to which the warehouse would have been bound to deliver the goods.
(g) The rights provided by this section are in addition to all other rights
allowed by law to a creditor against a debtor.
(h) If a lien is on goods stored by a merchant in the course of its business, the
lien may be enforced in accordance with subsection (a) or (b) of this section.
(i) A warehouse is liable for damages caused by failure to comply with the
requirements for sale under this section and, in case of willful violation, is liable for
conversion.