Sabrina contracts to buy 50 porch swings for her retail store. The swings have been identified to the contract and a down payment of $200 of the $1,250 purchase price has been paid. If the seller becomes insolvent, Sabrina may still pay $1,050 and get the swings.

Question

Sabrina contracts to buy 50 porch swings for her retail store.  The swings have been identified to the contract and a down payment of $200 of the $1,250 purchase price has been paid. If the seller becomes insolvent, Sabrina may still pay $1,050 and get the swings.

Quizplus · Accepted Answer

Under the Uniform Commercial Code (UCC), when goods have been identified to a contract and the buyer has made a part payment, the buyer has the right to recover the goods from an insolvent seller upon tendering the remainder of the purchase price.

Sabrina Contracts to Buy 50 Porch Swings for Her Retail