A seller or lessor who discovers that the buyer or lessee is insolvent before the goods are delivered may refuse to deliver as promised unless the buyer or lessee pays cash for the goods.

Question

Quizplus · Accepted Answer

This statement is true. According to the Uniform Commercial Code (UCC), a seller or lessor may refuse to deliver goods to a buyer or lessee who has become insolvent before the delivery date, unless the buyer or lessee pays cash for the goods. This is because insolvency indicates that the buyer or lessee may not be able to pay for the goods in the future, and the seller or lessor has the right to protect their own financial interests.

A Seller or Lessor Who Discovers That the Buyer or Lessee