8.2A-511 - A-511. Merchant lessee's duties as to rightfully rejected goods. - Virginia Statutes

§ 8.2A-511. Merchant lessee's duties as to rightfully rejected goods.

(1) Subject to any security interest of a lessee (subsection (5) of §8.2A-508), if a lessor or a supplier has no agent or place of business at themarket of rejection, a merchant lessee, after rejection of goods in his orher possession or control, shall follow any reasonable instructions receivedfrom the lessor or the supplier with respect to the goods. In the absence ofthose instructions, a merchant lessee shall make reasonable efforts to sell,lease, or otherwise dispose of the goods for the lessor's account if theythreaten to decline in value speedily. Instructions are not reasonable if ondemand indemnity for expenses is not forthcoming.

(2) If a merchant lessee as mentioned in subsection (1) of this section orany other lessee (§ 8.2A-512) disposes of goods, he or she is entitled toreimbursement either from the lessor or the supplier or out of the proceedsfor reasonable expenses of caring for and disposing of the goods and, if theexpenses include no disposition commission, to such commission as is usual inthe trade, or if there is none, to a reasonable sum not exceeding ten percentof the gross proceeds.

(3) In complying with this section or § 8.2A-512, the lessee is held only togood faith. Good faith conduct hereunder is neither acceptance or conversionnor the basis of an action for damages.

(4) A purchaser who purchases in good faith from a lessee pursuant to thissection or § 8.2A-512 takes the goods free of any rights of the lessor andthe supplier even though the lessee fails to comply with one or more of therequirements of this title.

(1991, c. 536.)