Colo. Rev. Stat. » Title 4
Colorado Revised Statutes

Colo. Rev. Stat. § 4-2-603 (2024)

Merchant buyer's duties as to rightfully rejected goods

✓ C.R.S. 2024: the 2025 and 2026 sessions are not included
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(1) Subject to any security interest in the buyer (subsection (3) of section 4-2-711), 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.

(2) When the buyer sells goods under subsection (1) of this section, 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 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.

Source: L. 65: p. 1328, § 1. C.R.S. 1963: § 155-2-603.

Notes of Decisions
Cited in 2 cases, 1982–1989 · leading case: Surplus Elec. Corp. v. Gallin, 653 P.2d 752 (Colo. Ct. App. 1982).
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Surplus Elec. Corp. v. Gallin, 653 P.2d 752 (Colo. Ct. App. 1982). · cites it 2× “The court determined that even under § 4-2-603, C.R.S.1973, which permits rejection of goods and holding subject to seller’s instructions, retention of goods for an unreasonable amount of time is not justified.”
Homier v. Faricy Truck & Equip. Co., 784 P.2d 798 (Colo. Ct. App. 1989). · cites it 2× “” This letter constituted Homier’s revocation of acceptance pursuant to § 4-2-603, C.R.S. At the time of Homier’s notice of revocation of acceptance, the vehicle was in the possession of Faricy.”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.