What does UCC section 2-702 permit if the buyer is insolvent?

UCC section 2-702 addresses the rights of a seller when a buyer is insolvent, outlining specific protections for sellers in such circumstances. If a buyer becomes insolvent, the seller has the right to demand payment for goods that have been delivered but not paid for. This provision serves to protect the seller's interests and ensures they have a way to recover losses associated with a buyer who is no longer financially able to fulfill the terms of the contract.

In this context, demanding payment for delivered goods is critical because it allows the seller to mitigate potential losses stemming from the buyer's inability to pay. It underscores the seller's right to ensure they receive compensation for goods already transferred, which is a fundamental principle in commercial transactions governed by the UCC.

The other options do not align with the provisions set out in UCC section 2-702. For instance, a requirement for the seller to refund the buyer contradicts the protective measures intended for sellers in cases of buyer insolvency. Similarly, the assertion that the seller has no rights overlooks the specific protections the UCC provides. Finally, indicating that the seller can only deliver goods for credit fails to recognize the seller's stronger rights to demand payment in cases of insolvency. Thus, the correct