{"data":{"id":"us-ky/krs-355.2a-511","jurisdiction":"us-ky","citation":"KRS 355.2A-511","heading":"Merchant lessee's duties as to rightfully rejected goods.","body":"(1) Subject to any security interest of a lessee (subsection (5) of KRS 355.2A -508), if a\nlessor or a supplier has no agent or place of business at the market of rejection, a\nmerchant lessee, after rejection of goods in his possession or control, shall follow\nany reasonable instructions received from the lessor or the supplier with respect to\nthe goods. In the absence of those instructions, a merchant lessee shall make\nreasonable efforts to sell, lease, or otherwise dispose of the goods for the lessor's\naccount if they threaten to decline in value speedily. Instructions are not reasonable\nif on demand indemnity for expenses is not forthcoming.\n(2) If a merchant lessee (subsection (1)) or any other lessee (KRS 355.2A-512) disposes\nof goods, he is entitled to reim bursement either from the lessor or the supplier or\nout of the proceeds for reasonable expenses of caring for and disposing of the goods\nand, if the expenses include no disposition commission, to such commission as is\nusual in the trade, or if there is non e, to a reasonable sum not exceeding ten percent\n(10%) of the gross proceeds.\n(3) In complying with this section or KRS 355.2A -512, the lessee is held only to good\nfaith. Good faith conduct hereunder is neither acceptance or conversion nor the\nbasis of an action for damages.\n(4) A purchaser who purchases in good faith from a lessee pursuant to this section or\nKRS 355.2A-512 takes the goods free of any rights of the lessor and the supplier\neven though the lessee fails to comply with one (1) or more of the re quirements of\nthis article.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33407","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:43Z","sha256":"b1ed6ba2272904ffe874c84ec5e358baf0c17989f0e6dbface8f01c6c0499dab","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.2a-510","next":"us-ky/krs-355.2a-512"},"notice":"GroundRules: Original legal text. Not legal advice."}