7-2A-512
Section 7-2A-512 Lessee's duties as to rightfully rejected goods. (1) Except as otherwise provided
with respect to goods that threaten to decline in value speedily (Section 7-2A-511) and subject
to any security interest of a lessee (Section 7-2A-508(5)): (a) the lessee, after rejection
of goods in the lessee's possession, shall hold them with reasonable care at the lessor's
or the supplier's disposition for a reasonable time after the lessee's seasonable notification
of rejection; (b) if the lessor or the supplier gives no instructions within a reasonable
time after notification of rejection, the lessee may store the rejected goods for the lessor's
or the supplier's account or ship them to the lessor or the supplier or dispose of them for
the lessor's or the supplier's account with reimbursement in the manner provided in Section
7-2A-511; but (c) the lessee has no further obligations with regard to goods rightfully rejected.
(2) Action by the lessee pursuant to subsection (1) is not...
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7-2A-511
Section 7-2A-511 Merchant lessee's duties as to rightfully rejected goods. (1) Subject to any
security interest of a lessee (Section 7-2A-508(5)), if a lessor or a supplier has no agent
or place of business at the market of rejection, a merchant lessee, after rejection of goods
in his or her possession or control, shall follow any reasonable instructions received from
the lessor or the supplier with respect to the goods. In the absence of those instructions,
a merchant lessee shall make reasonable efforts to sell, lease, or otherwise dispose of the
goods for the lessor's account if they threaten to decline in value speedily. Instructions
are not reasonable if on demand indemnity for expenses is not forthcoming. (2) If a merchant
lessee (subsection (1)) or any other lessee (Section 7-2A-512) disposes of goods, he or she
is entitled to reimbursement either from the lessor or the supplier or out of the proceeds
for reasonable expenses of caring for and disposing of the goods and, if the...
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7-2A-516
Section 7-2A-516 Effect of acceptance of goods; notice of default; burden of establishing default
after acceptance; notice of claim or litigation to person answerable over. (1) A lessee must
pay rent for any goods accepted in accordance with the lease contract, with due allowance
for goods rightfully rejected or not delivered. (2) A lessee's acceptance of goods precludes
rejection of the goods accepted. In the case of a finance lease, other than a consumer lease
in which the supplier assisted in the preparation of the lease contract or participated in
negotiating the terms of the lease contract with the lessor, if made with knowledge of a nonconformity,
acceptance cannot be revoked because of it. In any other case, if made with knowledge of a
nonconformity, acceptance cannot be revoked because of it unless the acceptance was on the
reasonable assumption that the nonconformity would be seasonably cured. Acceptance does not
of itself impair any other remedy provided by this article or...
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7-2A-220
Section 7-2A-220 Effect of default on risk of loss. (1) Where risk of loss is to pass to the
lessee and the time of passage is not stated: (a) If a tender or delivery of goods so fails
to conform to the lease contract as to give a right of rejection, the risk of their loss remains
with the lessor, or, in the case of a finance lease, the supplier, until cure or acceptance.
(b) If the lessee rightfully revokes acceptance, he or she, to the extent of any deficiency
in his or her effective insurance coverage, may treat the risk of loss as having remained
with the lessor from the beginning. (2) Whether or not risk of loss is to pass to the lessee,
if the lessee as to conforming goods already identified to a lease contract repudiates or
is otherwise in default under the lease contract, the lessor, or, in the case of a finance
lease, the supplier, to the extent of any deficiency in his or her effective insurance coverage
may treat the risk of loss as resting on the lessee for a commercially...
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7-2-604
Section 7-2-604 Buyer's options as to salvage of rightfully rejected goods. Subject to the
provisions of Section 7-2-603 on perishables if the seller gives no instructions within a
reasonable time after notification of rejection the buyer may store the rejected goods for
the seller's account or reship them to him or resell them for the seller's account with reimbursement
as provided in Section 7-2-603. Such action is not acceptance or conversion. (Acts 1965, No.
549, p. 811.)...
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7-2A-508
Section 7-2A-508 Lessee's remedies. (1) If a lessor fails to deliver the goods in conformity
to the lease contract (Section 7-2A-509) or repudiates the lease contract (Section 7-2A-402),
or a lessee rightfully rejects the goods (Section 7-2A-509) or justifiably revokes acceptance
of the goods (Section 7-2A-517), then with respect to any goods involved, and with respect
to all of the goods if under an installment lease contract the value of the whole lease contract
is substantially impaired (Section 7-2A-510), the lessor is in default under the lease contract
and the lessee may: (a) cancel the lease contract (Section 7-2A-505(1)); (b) recover so much
of the rent and security as has been paid and is just under the circumstances; (c) cover and
recover damages as to all goods affected whether or not they have been identified to the lease
contract (Sections 7-2A-518 and 7-2A-520), or recover damages for nondelivery (Sections 7-2A-519
and 7-2A-520); (d) exercise any other rights or pursue...
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7-2A-520
Section 7-2A-520 Lessee's incidental and consequential damages. (1) Incidental damages resulting
from a lessor's default include expenses reasonably incurred in inspection, receipt, transportation,
and care and custody of goods rightfully rejected or goods the acceptance of which is justifiably
revoked, any commercially reasonable charges, expenses or commissions in connection with effecting
cover, and any other reasonable expense incident to the default. (2) Consequential damages
resulting from a lessor's default include: (a) any loss resulting from general or particular
requirements and needs of which the lessor at the time of contracting had reason to know and
which could not reasonably be prevented by cover or otherwise; and (b) injury to person or
property proximately resulting from any breach of warranty. (Acts 1992, 2nd Ex. Sess., No.
92-700, p. 92, §520.)...
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7-2A-515
Section 7-2A-515 Acceptance of goods. (1) Acceptance of goods occurs after the lessee has had
a reasonable opportunity to inspect the goods and (a) the lessee signifies or acts with respect
to the goods in a manner that signifies to the lessor or the supplier that the goods are conforming
or that the lessee will take or retain them in spite of their nonconformity; or (b) the lessee
fails to make an effective rejection of the goods (Section 7-2A-509(2)). (2) Acceptance of
a part of any commercial unit is acceptance of that entire unit. (Acts 1992, 2nd Ex. Sess.,
No. 92-700, p. 92, §515.)...
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7-2A-514
Section 7-2A-514 Waiver of lessee's objections. (1) In rejecting goods, a lessee's failure
to state a particular defect that is ascertainable by reasonable inspection precludes the
lessee from relying on the defect to justify rejection or to establish default: (a) if, stated
seasonably, the lessor or the supplier could have cured it (Section 7-2A-513); or (b) between
merchants if the lessor or the supplier after rejection has made a request in writing for
a full and final written statement of all defects on which the lessee proposes to rely. (2)
A lessee's failure to reserve rights when paying rent or other consideration against documents
precludes recovery of the payment for defects apparent in the documents. (Acts 1992, 2nd Ex.
Sess., No. 92-700, p. 92, §514; Act 2004-315, p. 464, §2.)...
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7-2A-527
Section 7-2A-527 Lessor's rights to dispose of goods. (1) After a default by a lessee under
the lease contract of the type described in Section 7-2A-523(1) or 7-2A-523(3)(a) or after
the lessor refuses to deliver or takes possession of goods (Section 7-2A-525 or 7-2A-526),
or, if agreed, after other default by a lessee, the lessor may dispose of the goods concerned
or the undelivered balance thereof by lease, sale, or otherwise. (2) Except as otherwise provided
with respect to damages liquidated in the lease agreement (Section 7-2A-504) or otherwise
determined pursuant to agreement of the parties (Sections 7-1-302 and 7-2A-503), if the disposition
is by lease agreement substantially similar to the original lease agreement and the new lease
agreement is made in good faith and in a commercially reasonable manner, the lessor may recover
from the lessee as damages (i) accrued and unpaid rent as of the date of the commencement
of the term of the new lease agreement, (ii) the present value,...
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