If the buyer or lessee makes partial or full payment for goods before they are received,and the seller or lessor becomes insolvent within 10 days after receiving the first payment,the buyer or lessee may recover the goods from the seller or lessor.

Question

Quizplus · Accepted Answer

This is known as the "10-Day Rule" and is a provision included in the Uniform Commercial Code (UCC) to protect buyers/lessees in this scenario. If the seller/lessor becomes insolvent within 10 days after receiving the first payment, the buyer/lessee has the right to recover the goods or a refund.

If the Buyer or Lessee Makes Partial or Full Payment