Tennessee Code Annotated
Tenn. Code Ann. § 47-2-603 (2024)
Merchant buyer's duties as to rightfully rejected goods
✓ Justia copy: laws through about 2024 (2025 and 2026 sessions missing)
- (1) Subject to any security interest in the buyer (§ 47-2-711(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.
Acts 1963, ch. 81, § 1 (2-603).
Notes of Decisions
Cited in 2
cases, 2010–2013 · leading case: Six L's Packing Co. v. Beale, 524 F. App'x 148 (6th Cir. 2013).
Six L's Packing Co. v. Beale, 524 F. App'x 148 (6th Cir. 2013). “Tenn.Code Ann. § 47-2-603(1) (noting that, absent instructions from seller, a buyer “is under a duty after rejection of goods in his possession .”
Shomaker Lumber Co. v. Hardwood Sales & Plan. Servs., Inc., No. W2009-02048-COA-R3-CV (Tenn. Ct. App. Sept. 2, 2010). “Tenn. Code Ann. § 47-2-603 (2001). Tennessee Code Annotated section 47-2-604 provides: Subject to the provisions of the immediately preceding section on perishables if the seller gives no instructions within a reasonable time after notification of rejection the buyer may store…”
Tenn. Code Ann. § 47-2-603(1): 1 case
Six L's Packing Co. v. Beale, 524 F. App'x 148 (6th Cir. 2013). “Tenn.Code Ann. § 47-2-603(1) (noting that, absent instructions from seller, a buyer “is under a duty after rejection of goods in his possession .”
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