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84-2-711. Buyer's remedies in general; buyer's security interest in rejected goods. (1) Where the seller fails to make delivery or repudiates or the buyer rightfully rejects or justifiably revokes acceptance then with respect to any goods involved, and with respect to the whole if the breach goes to the whole contract (section 84-2-612), the buyer may cancel and whether or not he has done so may in addition to recovering so much of the price as has been paid

(a) "cover" and have damages under the next section as to all the goods affected whether or not they have been identified to the contract; or

(b) recover damages for nondelivery as provided in this article (section 84-2-713).

(2) Where the seller fails to deliver or repudiates the buyer may also

(a) if the goods have been identified recover them as provided in this article (section 84-2-502); or

(b) in a proper case obtain specific performance or replevy the goods as provided in this article (section 84-2-716).

(3) On rightful rejection or justifiable revocation of acceptance a buyer has a security interest in goods in his possession or control for any payments made on their price and any expenses reasonably incurred in their inspection, receipt, transportation, care and custody and may hold such goods and resell them in like manner as an aggrieved seller (section 84-2-706).

History: L. 1965, ch. 564, § 107; January 1, 1966.

KANSAS COMMENT, 1996

1. This section indexes the remedies available to a buyer that has not accepted the goods or that has revoked its acceptance. These remedies are available whether the seller has breached by failing to deliver, by repudiating, or by delivering non-conforming goods. For the buyer's remedies when it accepts the goods, see 84-2-714.

2. Under subsection (1), the buyer may cancel and obtain restitution of any of the price that has been paid. In addition, the buyer may either "cover" and receive damages under 84-2-712 or recover market damages under 84-2-713. Subsection (1) thus generally continues the policy of Article 2 of making remedies cumulative.

3. Subsection (2) lists the remedies available to a buyer that seeks to recover the goods themselves. Subsection (3) gives the buyer a security interest in goods in its possession or control after rightful rejection or revocation of acceptance to the extent of any price prepaid or expenses incurred. The buyer's security interest does not extend to its claimed damages. The buyer may resell goods in which it has a security interest in the manner provided in 84-2-706, although it may not keep any profit resulting from the resale.

Law Review and Bar Journal References:

"Remedies for Breach of Sales Contract Under the Code," Keith Hey, 7 W.L.J. 35, 36, 39, 40 (1967).

"Executory Contracts and Bankruptcy: The Case for a Federal Common Law," Richard F. Broude, 17 K.L.R. 1, 15 (1968).

The uniform commercial code, the statute of frauds, and the farmer, 25 K.L.R. 318, 319 (1977).

"The Buyer's Right to Return Unsatisfactory Goods—The Uniform Commercial Code Remedies of Rejection and Revocation of Acceptance," George I. Wallach, 20 W.L.J. 20, 31, 37, 38 (1980).

"Broadcast Advertising: What Has It Done to the Audience?" Ronald C. Griffin, 23 W.L.J. 237, 264 (1984).

"Deregulation and Natural Gas Purchase Contracts: Examination Through Neoclassical and Relational Contract Theories," Danton B. Rice, Michael A. Schlueter, 25 W.L.J. 43, 59 (1985).

"Anticipating Common Issues in Revocation of Acceptance Cases," Ronald L. Shalz, 12 J.K.T.L.A. No. 1, p. 21, 22 (1988).

CASE ANNOTATIONS

1. Applied; incidental and consequential damages allowed in action for recision of portion of contract upheld. La Villa Fair v. Lewis Carpet Mills, Inc., 219 Kan. 395, 404, 548 P.2d 825.

2. Cited; buyer who revokes acceptance has security interest for payments made and expenses incurred. Johnson v. General Motors Corp., 233 Kan. 1044, 1047, 668 P.2d 139 (1983).

3. In addition to purchase price and incidental and consequential damages, buyer entitled to prejudgment interest. Hemmert Agr. Aviation v. Mid-Continent Aircraft, 663 F. Supp. 1546, 1554 (1987).

4. Failure of company to provide either quantity or quality of goods called for entitled buyer to suspend performance. LNS Inv. Co., Inc. v. Phillips 66 Co., 731 F. Supp. 1484 (1990).

5. Manufacturer of trash can liners, by accepting off-grade resins without notifying producer of breach of oral agreement, barred from claims. Rajala v. Allied Corp., 919 F.2d 610 (1990).

6. Cited in holding specific provisions of 84-2-713 prevail over general provisions in 84-1-106 when seller breaches contract for sale of goods. Tongish v. Thomas, 16 Kan. App. 2d 809, 812, 829 P.2d 916 (1992); Aff'd. 251 Kan. 728, 730, 840 P.2d 471 (1992).

7. Cited in bankruptcy proceeding relating to debtor's claim involving mobile home purchase and homestead. In re Murphy, 367 B.R. 711, 715 (2007).


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