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MATTER OF DAYLIN, INC.

Nos. 76-1602, 76-1641.

596 F.2d 853 (1979)

In the Matter of DAYLIN, INC., Debtor in Possession. RAY-O-VAC, Division of ESB, Inc., Plaintiff, Appellee and Cross-Appellant, v. DAYLIN, INC., Defendant, Appellant and Cross-Appellee.

United States Court of Appeals, Ninth Circuit.

May 8, 1979.

Attorney(s) appearing for the Case

Robert P. Gordon, Los Angeles, Cal., for defendant, appellant and cross-appellee.

Gregory R. Smith, Los Angeles, Cal., for plaintiff, appellee and cross-appellant.

Before HUFSTEDLER and TRASK, Circuit Judges, and CLAIBORNE, District Judge.

HUFSTEDLER, Circuit Judge:

The central issue on these appeals is whether U.C.C. § 2-702, allowing a seller to reclaim goods delivered on credit to a buyer who is insolvent, conflicts with §§ 1, 60, 64, 67, and 70 of the Bankruptcy Act and is therefore ineffective in bankruptcy. Following In re Telemart Enterprises, Inc. (9th Cir. 1975) 524 F.2d 761, we hold that the state-created right of reclamation is not barred...

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