§2-1516. 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.
[
1991, c. 805, §4 (NEW)
.]
(2).
A lessee's acceptance of goods precludes rejection of the goods accepted. In the case of a finance lease, if made with
knowledge of a nonconformity, acceptance can not be revoked because of the nonconforming. In any other case, if made with
knowledge of a nonconformity, acceptance can not be revoked because of the nonconformity 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 the lease agreement for nonconformity.
[
1991, c. 805, §4 (NEW)
.]
(3).
If a tender has been accepted:
(a). Except in the case of a consumer lease, within a reasonable time after the lessee discovers or should have discovered any
default, the lessee shall notify the lessor and the supplier, if any, or be barred from any remedy against the party not notified; [1991, c. 805, §4 (NEW).]
(b). In the case of a consumer lease, within a reasonable time after the lessee discovers or should have discovered any default,
the lessee shall notify either the lessor or any assignee of the lessor. By notifying one of these parties the lessee preserves
any remedy against any of the parties; and [1991, c. 805, §4 (NEW).]
(c). The burden is on the lessee to establish any default. [1991, c. 805, §4 (NEW).]
[
1991, c. 805, §4 (NEW)
.]
(4).
If a lessee is sued for breach of a warranty or other obligation for which a lessor or a supplier is answerable over, the
following apply.
(a). The lessee may give the lessor or the supplier, or both, written notice of the litigation. If the notice states that the
person notified may come in and defend and that if the person notified does not do so that person will be bound in any action
against that person by the lessee by any determination of fact common to the 2 litigations, then unless the person notified
after seasonable receipt of the notice does come in and defend that person is so bound. [1991, c. 805, §4 (NEW).]
(b). The lessor or the supplier may demand in writing that the lessee turn over control of the litigation including settlement
if the claim is one for infringement or the like (section 2-1211) or be barred from any remedy over. If the demand states
that the lessor or the supplier agrees to bear all expense and to satisfy any adverse judgment, then unless the lessee after
seasonable receipt of the demand does turn over control, the lessee is so barred. [1991, c. 805, §4 (NEW).]
[
1991, c. 805, §4 (NEW)
.]
(5).
Subsections (3) and (4) apply to any obligation of a lessee to hold the lessor or the supplier harmless against infringement
or the like (section 2-1211).
[
1991, c. 805, §4 (NEW)
.]
SECTION HISTORY
1991, c. 805, §4 (NEW).
Data for this page extracted on 10/16/2012 08:20:53.