Legislation

Search OpenLegislation Statutes

This entry was published on 2014-09-22
The selection dates indicate all change milestones for the entire volume, not just the location being viewed. Specifying a milestone date will retrieve the most recent version of the location before that date.
SECTION 2-A-517
Revocation of Acceptance of Goods
Uniform Commercial Code (UCC) CHAPTER 38, ARTICLE 2-A, PART 5
Section 2-A-517. Revocation of Acceptance of Goods.

(1) A lessee may revoke acceptance of a lot or commercial unit whose
nonconformity substantially impairs its value to the lessee if the
lessee has accepted it:

(a) except in the case of a finance lease, on the reasonable

assumption that its nonconformity would be cured and it has

not been seasonably cured; or

(b) without discovery of the nonconformity if the lessee's

acceptance was reasonably induced either by the lessor's

assurances or, except in the case of a finance lease, by the

difficulty of discovery before acceptance.

(2) Except in the case of a finance lease that is not a consumer
lease, a lessee may revoke acceptance of a lot or commercial unit if the
lessor defaults under the lease contract and the default substantially
impairs the value of that lot or commercial unit to the lessee.

(3) If the lease agreement so provides, the lessee may revoke
acceptance of a lot or commercial unit because of other defaults by the
lessor.

(4) Revocation of acceptance must occur within a reasonable time after
the lessee discovers or should have discovered the ground for it and
before any substantial change in condition of the goods which is not
caused by the nonconformity. Revocation is not effective until the
lessee notifies the lessor.

(5) A lessee who so revokes has the same right and duties with regard
to the goods involved as if the lessee had rejected them.