Uniform sales act of 1906 and remedies and when lien is lost

Section 47. [Right to Examine the Goods.] (1.) Where goods are delivered to the buyer, which he has not previously examined, he is not deemed to have accepted them unless and until he has had a reasonable opportunity of examining them for the purpose of ascertaining whether they are in conformity with the contract.
(2.) Unless otherwise agreed, when the seller tenders delivery of goods to the buyer, he is bound, on request, to afford the buyer a reasonable opportunity of examining the goods for the purpose of ascertaining whether thay are in conformity with the contract.
(3.) Where the goods are delivered to a carrier by the seller, in accordance with an order from or agreement with the buyer, upon the terms that the goods shall not be delivered by the carrier to the buyer until he has paid the price, whether such terms are indicated by marking the goods with the words "collect on delivery," or otherwise, the buyer is not entitled to examine the goods before payment of the price in the absence of agreement permitting such examination.

Section 48. [What Constitutes Acceptance.] The buyer is deemed to have accepted the goods when he intimates to the seller that he has accepted them, or when the goods have been delivered to him, and he does any act in relation to them which is inconsistent with the ownership of the seller, or when, after the lapse of a reasonable time, he retains the goods without intimating to the seller that he has rejected them.

Section 49. [Acceptance does not Bar Action for Damages.] In the absence of express or implied agreement of the parties, acceptance of the goods by the buyer shall not discharge the seller from liability in damages or other legal remedy for breach of any promise or warranty in the contract to sell or the sale. But, if, after acceptance fo the goods, the buyer fail to give notice to the seller of the breach of any promise or warranty within a reasonable time after the buyer knows, or ought to know of such breach, the seller shall not be liable therefor.

Section 50. [Buyer is not Bound to Return Goods Wrongly Delivered.] Unless otherwise agreed, where the goods are delivered to the buyer, and he refuses to accept them, having the right to do so, he is not bound to return them, to the seller, but it is sufficient if he notifies the seller that he refused to accept them.

Section 51. [Buyer's Liability for Failing to Accept Delivery.] When the seller is ready and willing to deliver the goods, and requests the buyer to take delivery, and the buyer does not within a reasonable time after such request take delivery of the goods, he is liable to the seller for any loss occasioned by his neglect or refusal to take delivery, and also for a reasonable charge for the care and custody of the goods. If the neglect or refusal of the buyer to take delivery amounts to a repudiation or breach of the entire contract, the seller shall have the rights against the goods and on the contract hereinafter provided in favor of the seller when the buyer is in default.

PART IV

RIGHTS OF UNPAID SELLER AGAINST THE GOODS

Section 52. [Definition of Unpaid Seller.] (1.) The seller of good is deemed to be an unpaid seller within the meaning of this act:
(a.) When the whole of the price has not been paid or tendered.
(b.) When a bill of exchange or other negotiable instrument has been received as conditional payment, and the condition on which it was received has been broken by reason of the dishonor of the instrument, the insolvency of the buyer, or otherwise.
(2.) In this part of this act the term "seller" includes an agent of the seller to whom the bill of lading has been indorsed, or a consignor or agent who has himself paid, or is directly responsible for, the price, or any other person who is in the position of a seller.

Section 53. [Remedies of an Unpaid Seller.] (1.) Subject to the provisions of this act, notwithstanding that the property in the goods may have passed to the buyer, the unpaid seller of goods, as such, has:
(a.) A lien on the goods or right to retain them for the price while he is in possession of them;
(b.) In case of the insolvency of the buyer, a right of stopping the goods in transitu after he has parted with the possession of them;
(c.) A right of resale as limited by this act;
(d.) A right to rescind the sale as limited by this act.
(2.) Where the property in goods has not passed to the buyer the unpaid seller has, in addition to his other remedies, a right of withholding delivery similar to and coextensive with his rights of lien and stoppage in transitu where the property has passed to the buyer.

Unpaid Seller's Lien

Section 54. [When Right of Lien may be Exercised.] (1.) Subject to the provisions of this act, the unpaid seller of goods who is in possession of them is entitled to retain possession of them until payment or tender of the price in the following cases, namely:
(a.) Where the goods have been sold without any stipulation as to credit;
(b.) Where the goods have been sold on credit, but the term of credit as expired;
(c.) Where the buyer becomes insolvent.
(2.) The seller may exercise his right of lien notwithstanding that he is in possession of the goods as agent or bailee for the buyer.

Section 55. [Lien after Part Delivery.] Where an unpaid seller has made part delivery of the goods, he may exercise his right of lien on the remainder, unless such part delivery has been made under such circumstances as to show an intent to waive the lien or right of retention.

Section 56. [When Lien is Lost.] (1.) The unpaid seller of goods loses his lien thereon:
(a.) When he delivers the goods to a carrier or other bailee for the purpose of transmission to the buyer without reserving the property in goods or the right to the possession thereof;
(b.) When the buyer or his agent lawfully obtains possession of the goods.
(c.) By waiver thereof.
(2.) The unpaid seller of goods, having a lien thereon, does not lose his lien by reason only that he has obtained judgment or decree for the price of the goods.

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