New Jersey § 12a:2a-511

§ 12a:2a-511.

(1) Subject to any security interest of a lessee (12A: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 the merchant lessee's 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 (12A:2A-512) disposes

of goods, the lessee 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 percent

of the gross proceeds. (3) In complying with this section or 12A:2A-512, the lessee is held only to good

faith. Good faith conduct hereunder is neither acceptance or conversion or the basis of

an action for damages. (4) A purchaser who purchases in good faith from a lessee pursuant to this section

or 12A: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 chapter.