On May 1, S sells B 100 widgets on credit at a price of $1 per widget. S did so based on an April 10 letter from B asserting B's solvency. On May 7, S learns that B was insolvent when it received the widgets on May 1. On May 13, S demands the return of the goods from
B. Is B obligated to return the goods to S?
Yes. Although S did not demand the goods within ten days of their receipt, as required by UCC section 2-702(2), this requirement does not apply in cases where the buyer has made a written misrepresentation of solvency within three months of the goods' delivery.

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The Answer of On May 1, S sells B 100 widgets on credit at a price of $1 per widget. S did so based on an April 10 letter from B asserting B's solvency. On May 7, S learns that B was insolvent when it received the widgets on May 1. On May 13, S demands the return of the goods from
B. Is B obligated to return the goods to S?
Yes. Although S did not demand the goods within ten days of their receipt, as required by UCC section 2-702(2), this requirement does not apply in cases where the buyer has made a written misrepresentation of solvency within three months of the goods' delivery.

On May 1, S Sells B 100 Widgets on Credit