§ 26-1-2-603 — Merchant buyer's duties as to rightfully rejected goods

(1) Subject to any security interest in the
buyer (IC 26-1-2-711(3)), 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.
(2) When the buyer sells goods under subsection (1), 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 percent (10%) 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 for damages.
Formerly: Acts 1963, c.317, s.2-603. As amended by
P.L.152-1986, SEC.153.