Tennessee Code Annotated

Tenn. Code Ann. § 47-2-502 (2026)

Buyer's right to goods on seller's insolvency

✓ current as of May 2026

Find cases: SyfertCases citing this section JustiaTenn. Code CornellLII Search CasesGoogle Scholar

(1) Subject to subsections (2) and (3) and even though the goods have not been shipped, a buyer who has paid a part or all of the price of goods in which the buyer has a special property under the provisions of the immediately preceding section may on making and keeping good a tender of any unpaid portion of their price recover them from the seller if:
- (a) in the case of goods bought for personal, family, or household purposes, the seller repudiates or fails to deliver as required by the contract; or
- (b) in all cases, the seller becomes insolvent within ten (10) days after receipt of the first installment on their price.

(2) The buyer's right to recover the goods under subsection (1)(a) vests upon acquisition of a special property, even if the seller had not then repudiated or failed to deliver.

(3) If the identification creating the buyer's special property has been made by the buyer, the buyer acquires the right to recover the goods only if they conform to the contract for sale.

Acts 1963, ch. 81, § 1 (2-502); Acts 2000, ch. 846, § 7.

Notes of Decisions

Cited in 3 cases, 1985–1999 · leading case: Prod. Steel, Inc. v. Sumitomo Corp. of Am. (In Re Prod. Steel, Inc.), 54 B.R. 417 (Bankr. M.D. Tenn. 1985).

Sort: Relevance Newest Treatment

Prod. Steel, Inc. v. Sumitomo Corp. of Am. (In Re Prod. Steel, Inc.), 54 B.R. 417 (Bankr. M.D. Tenn. 1985). “§ 47-2-502 (1979) (Buyer’s right to goods on seller’s insolvency) and TENN.”

Weaver v. Ford Motor Credit Co. (In re McFarland), 112 B.R. 906 (Bankr. E.D. Tenn. 1990). · cites it 2× “Other property rights in the collateral flowing from the execution of the sales contracts which existed even prior to the delivery of the vehicles include the debtors’ right, upon tender of the balance of the purchase price, to obtain the vehicles in the event of the seller’s…”

Conister Trust v. Boating Corp. of Am. & Villas-Afloat (Tenn. Ct. App. 1999). · cites it 8× “Tenn. Code Ann. § 47-2-502 . Villas-Afloat did not tender the full purchase price, and BCA did not become insolvent in the relevant time period.”

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.