Final answer:
A seller may exercise the right of stoppage in transitu by notifying the carrier to withhold delivery of goods to an insolvent buyer, aiming to protect the seller's interest.
Step-by-step explanation:
To exercise the right of stoppage in transitu, a seller may take certain steps when the buyer becomes insolvent. The seller must notify the carrier or party in possession of the goods to stop delivery. This right is aimed at protecting a seller's interest in a situation where the buyer is unable to pay for the goods upon delivery. The process typically involves the seller providing a written notice to the carrier, instructing the carrier to withhold the goods from the buyer. Legally, the seller can reclaim the goods as long as they are in transit and have not been delivered to the buyer or a new owner.