Final answer:
R Inc can exercise an unpaid seller's lien on Y Corp by retaining possession of the goods sold until payment is received. This may involve legally notifying Y Corp, halting the delivery of goods, and following statutory guidelines and the terms of the sales contract.
Step-by-step explanation:
Exercising an Unpaid Seller's Lien
When R Inc sold a product to Y Corp without receiving payment, R Inc has the right to exercise an unpaid seller's lien. This refers to the legal right of a seller to retain possession of the goods sold until payment is made in full. Exercising this lien involves certain legal procedures, including formally notifying the buyer of the intention to retain the goods due to non-payment and possibly taking legal action to enforce the lien.
If the goods are in transit and R Inc has not received a payment, they may also halt the delivery of goods to Y Corp until the payment is settled. However, exercising an unpaid seller's lien often requires the following of statutory guidelines and may involve seeking legal counsel to ensure that the seller is acting within the scope of the law. It is also essential to check the terms of the sales contract as it may stipulate specific conditions under which a lien can be executed.