Idaho State Statutes - Idaho Attorney Directory

(1)
Subject to any security interest of a lessee (section 28-12-508(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 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 (see subsection (1) of this section) or any
other lessee (section 28-12-512) disposes of goods, he 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 ten percent
(10%) of the gross proceeds.
(3) In complying with the provisions of this section or section
28-12-512, the lessee is held only to good faith. Good faith conduct hereunder
is neither acceptance or conversion nor the basis of an action for damages.
(4) A purchaser who purchases in good faith from a lessee pursuant to the
provisions of this section or section 28-12-512 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.

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