§ 336.2A-512 — Lessee's Duties as to Rightfully Rejected Goods
Plain-Language Summary
A lessee who rightfully rejects leased goods in the lessee's possession must hold them with reasonable care, at the lessor's or supplier's disposal, for a reasonable time after giving notice of rejection. If the lessor or supplier gives no instructions within a reasonable time, the lessee may store the goods, ship them back, or dispose of them for the lessor's account (with reimbursement of expenses). Once that is done, the lessee has no further obligation as to the rejected goods, and taking these steps is not treated as acceptance or conversion. Goods that may decline in value quickly are handled under the separate perishable-goods rule.
336.2A-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 336.2A-511) and subject to any security interest of a lessee (section 336.2A-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 336.2A-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 acceptance or conversion.
History:
1989 c 232 art 1 s 2A-512
History: History: 1989 c 232 art 1 s 2A-512