Article:
Marion W. Benfield, Jr., Rights of a Seller’s Assignee to Reclaim Goods Under the UCC, 53 TEXAS L. REV. 1 (1974).
 

Abstract:
Section 2-702(2) of the UCC gives a seller of goods the right to reclaim those goods from a buyer who received them on credit and while insolvent. In the case of In re Hardin, the Seventh Circuit suggested that an assignee of the seller’s right to payment does not acquire the seller’s right to reclaim. In this article, Professor Benfield identifies four basic arguments made by the referee in bankruptcy, the district court, and the Seventh Circuit, in reaching the holding in Hardin. Firstly, a seller who takes an unperfected security interest in the goods, loses his right to reclaim under 2-702(2). Secondly, an assignee must show some reliance, an implicit feature of the 2-702(2) remedy. Thirdly, the right to reclaim simply cannot be assigned. Finally, the seller in Hardin did not in fact assign his right to reclaim when he assigned his right to payment. Professor Benfield argues that none of these arguments justify the deprivation of the assignee’s right to reclaim, which should pass from the seller to his assignee under section 2-702(2) of the UCC.