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A is corrent. A seller who discovers that an insolvent buyer has received goods on credit may reclaim the goods by making a demand for their return within 10 days after receipt of the goods by the buyer. This 10-day limitation, however, does not apply if the buyer made a written misrepresentation of its solvency within 3 months prior to its receipt of the goods. Anker’s fraudulent financials constitute a written misrepresentation of solvency; therefore, Bold may demand return of the goods even though 14 days have passed.
B is incorrect. Anker may make a demand for the goods rather than sue for damages.
C is incorrect. The 10-day limitation does not apply when the buyer (Anker) provides the seller (Bold) with a written misrepresentation of solvency (the financial statements) within 3 months prior to receipt of the goods.
D is incorrect. The seller’s right to reclaim the goods is subject to the rights of a third party who purchases the goods in good faith from the insolvent buyer.