Florida Statutes

Fla. Stat. § 672.702 (2025)

Seller’s remedies on discovery of buyer’s insolvency.

✓ 2025 Florida Statutes — current through the 2025 Regular Session

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672.702 Seller’s remedies on discovery of buyer’s insolvency.—

(1) Where the seller discovers the buyer to be insolvent the seller may refuse delivery except for cash including payment for all goods theretofore delivered under the contract, and stop delivery under this chapter (s. 672.705).

(2) Where the seller discovers that the buyer has received goods on credit while insolvent the seller may reclaim the goods upon demand made within 10 days after the receipt, but if misrepresentation of solvency has been made to the particular seller in writing within 3 months before delivery the 10-day limitation does not apply. Except as provided in this subsection the seller may not base a right to reclaim goods on the buyer’s fraudulent or innocent misrepresentation of solvency or of intent to pay.

(3) The seller’s right to reclaim under subsection (2) is subject to the rights of a buyer in ordinary course or other good faith purchaser under this chapter (s. 672.403). Successful reclamation of goods excludes all other remedies with respect to them.

History.—s. 1, ch. 65-254; s. 4, ch. 79-398; s. 601, ch. 97-102.

Note.—s. 2-702, U.C.C.

Notes of Decisions

Cited in 14 cases, 1979–2005 · leading case: Isaly Klondike Co. v. Sunstate Dairy & Food Prods. Co. (In Re Sunstate Dairy & Food Prods. Co.), 145 B.R. 341 (Bankr. M.D. Fla. 1992).

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Isaly Klondike Co. v. Sunstate Dairy & Food Prods. Co. (In Re Sunstate Dairy & Food Prods. Co.), 145 B.R. 341 (Bankr. M.D. Fla. 1992). · cites it 9× “Section 672.702(2) of the Florida Statutes 3 provides the statutory basis for Klondike’s assertion of a right of reclamation.”

Mierzwa v. Florida Windstorm Underwriting, 877 So. 2d 774 (Fla. 4th DCA 2004). · cites it 3× “Section 672.702(1), Florida Statutes (2003), the valued policy law, has been part of Florida law for over a century.”

R. J. Reynolds Tobacco Co. v. Eli Witt Co. (In Re Eli Witt Co.), 12 B.R. 757 (Bankr. M.D. Fla. 1981). · cites it 8× “In both of these cases, this Court held that the right of a seller of goods to reclaim property based on § 2-702 of the UCC as adopted in the State of Florida as Fla.Stat. § 672.702 cannot be asserted against a debt- or-in-possession.”

Tate Cheese Co. v. Crofton & Sons, Inc. (In Re Crofton & Sons, Inc.), 139 B.R. 567 (Bankr. M.D. Fla. 1992). · cites it 4× “Section 2-702 of the Uniform Commercial Code is codified in Florida as Section 672.702 of the Florida Statutes. 2 .”

Graphic Prods. Corp. v. WWF Paper Corp. (In Re Graphic Prods. Corp.), 176 B.R. 65 (Bankr. S.D. Florida 1994). · cites it 2× “GPC argues that the June 18 letter is not a written demand for reclamation because it does not contain the word “reclamation” or a reference to § 546(c) or § 672.702, Florida Statutes. The Court rejects this argument.”

In Re Penthouse Travelers of Aripeka, Inc., 120 B.R. 226 (Bankr. M.D. Fla. 1990). · cites it 4× “§ 672.702. (Banks’ Exh. No. 1). On the same day, the sales manager of Banks, having learned about the fact that the Debtor filed its Chapter 11 Petition, visited the premises of the Debtor and claimed to have seen some of the trusses which were purchased on open account from…”

First State Bank of Miami v. Gotham Provision Co. (In Re Gotham Provision Co.), 1 B.R. 255 (Bankr. S.D. Florida 1979). “* Lykes also has asserted a reclamation claim under either § 672.702(2) or § 672.507(2), Florida Statutes.”

Quaker Oats Co. v. Affiliated of Florida, Inc. (In Re Affiliated of Florida, Inc.), 237 B.R. 495 (Bankr. M.D. Fla. 1998). · cites it 3× “Section 672.702 of the Florida Statutes, which constitutes Florida’s version of § 2-702 of the Uniform Commercial Code, provides: 672.”

Beason-simons v. Avion Tech., 662 So. 2d 1317 (Fla. 4th DCA 1995). · cites it 2× “NOTES [1] Whether a seller's right of reclamation under section 672.702, Florida Statutes, where seller discovers buyer is insolvent after delivery, is not involved here.”

Champion Int'l Corp. v. Davidson Lumber Co. (In Re Davidson Lumber Co.), 22 B.R. 775 (Bankr. S.D. Florida 1982). “The relief sought in the complaint is based on § 2-702 of the Uniform Commercial Code (§ 672.702, Florida Statutes, 1981). In support of its claim, plaintiff Champion International Corp.”

Lawrence Pharm., Inc. v. Best Buy Drugs, Inc. (In Re Best Buy Drugs, Inc.), 89 B.R. 997 (Bankr. S.D. Florida 1988). “546(c) and Section 672.702 of the Florida statutes. The Court having considered the stipulated facts and argument of counsel makes the following findings of fact and conclusions of law: By stipulation so ordered by this Court on December 23, 1987, the parties agreed to a…”

Johnson Matthey Ltd. v. United Precious Metals, Inc. (In Re United Precious Metals, Inc.), 39 B.R. 14 (Bankr. S.D. Florida 1984). “Similarly, plaintiff concedes and I find that it is not entitled to reclamation under § 672.702, Florida Statutes (U.C.C. § 2-702).”

Show all 14 citing cases →

— 672.702(1) — 1 case

Mierzwa v. Florida Windstorm Underwriting, 877 So. 2d 774 (Fla. 4th DCA 2004). “Section 672.702(1), Florida Statutes (2003), the valued policy law, has been part of Florida law for over a century.”

— 672.702(2) — 4 cases

Isaly Klondike Co. v. Sunstate Dairy & Food Prods. Co. (In Re Sunstate Dairy & Food Prods. Co.), 145 B.R. 341 (Bankr. M.D. Fla. 1992). “Section 672.702(2) of the Florida Statutes 3 provides the statutory basis for Klondike’s assertion of a right of reclamation.”

Tate Cheese Co. v. Crofton & Sons, Inc. (In Re Crofton & Sons, Inc.), 139 B.R. 567 (Bankr. M.D. Fla. 1992). “Section 2-702 of the Uniform Commercial Code is codified in Florida as Section 672.702 of the Florida Statutes. 2 .”

Graphic Prods. Corp. v. WWF Paper Corp. (In Re Graphic Prods. Corp.), 176 B.R. 65 (Bankr. S.D. Florida 1994). “GPC argues that the June 18 letter is not a written demand for reclamation because it does not contain the word “reclamation” or a reference to § 546(c) or § 672.702, Florida Statutes. The Court rejects this argument.”

— 672.702(3) — 2 cases

Quaker Oats Co. v. Affiliated of Florida, Inc. (In Re Affiliated of Florida, Inc.), 237 B.R. 495 (Bankr. M.D. Fla. 1998). “Section 672.702 of the Florida Statutes, which constitutes Florida’s version of § 2-702 of the Uniform Commercial Code, provides: 672.”

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