(810 ILCS 5/2A-511)
(from Ch. 26, par. 2A-511)
Merchant lessee's duties as to rightfully
(1) Subject to any security interest of a lessee
(Section 2A-508(5)), if a lessor or a supplier has no agent or
place of business at the market of rejection, a merchant lessee,
after rejection of goods in his or her possession or control,
shall follow any reasonable instructions received from the lessor
or the supplier with respect to the goods. In the absence of
those instructions, a merchant lessee shall make reasonable
efforts to sell, lease, or otherwise dispose of the goods for the
lessor's account if they threaten to decline in value speedily.
Instructions are not reasonable if on demand indemnity for
expenses is not forthcoming.
(2) If a merchant lessee (subsection (1)) or any other
lessee (Section 2A-512) disposes of goods, he or she is
entitled to reimbursement either from the lessor or the supplier
or out of the proceeds for reasonable expenses of caring for and
disposing of the goods and, if the expenses include no
disposition commission, to such commission as is usual in the
trade or, if there is none, to a reasonable sum not exceeding
10% of the gross proceeds.
(3) In complying with this Section or Section 2A-512, the
lessee is held only to good faith. Good faith conduct hereunder
is neither acceptance or conversion nor the basis of an action
(4) A purchaser who purchases in good faith from a
lessee pursuant to this Section or Section 2A-512 takes the goods
free of any rights of the lessor and the supplier even though
the lessee fails to comply with one or more of the requirements
of this Article.
(Source: P.A. 87-493.)