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This entry was published on 2014-09-22
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SECTION 2-A-512
Lessee's Duties as to Rightfully Rejected Goods
Uniform Commercial Code (UCC) CHAPTER 38, ARTICLE 2-A, PART 5
Section 2-A-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 2-A-511) and subject to any
security interest of a lessee (Section 2-A-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 2-A-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.