400.2A-508. Lessee's remedies.

Lessee's remedies.

400.2A-508. (1) If a lessor fails to deliver the goods inconformity to the lease contract (Section 400.2A-509) orrepudiates the lease contract (Section 400.2A-402), or a lesseerightfully rejects the goods (Section 400.2A-509) or justifiablyrevokes acceptance of the goods (Section 400.2A-517), then withrespect to any goods involved, and with respect to all of thegoods if under an installment lease contract the value of thewhole lease contract is substantially impaired (Section400.2A-510), the lessor is in default under the lease contractand the lessee may:

(a) cancel the lease contract (Section 400.2A-505(1));

(b) recover so much of the rent and security as has beenpaid, and is just under the circumstances;

(c) cover and recover damages as to all goods affectedwhether or not they have been identified to the lease contract(Sections 400.2A-518 and 400.2A-520), or recover damages fornondelivery (Sections 400.2A-519 and 400.2A-520);

(d) exercise any other rights or pursue any other remediesprovided in the lease contract.

(2) If a lessor fails to deliver the goods in conformity tothe lease contract or repudiates the lease contract, the lesseemay also:

(a) if the goods have been identified, recover them(Section 400.2A-522); or

(b) in a proper case, obtain specific performance orreplevy the goods (Section 400.2A-521).

(3) If a lessor is otherwise in default under a leasecontract, the lessee may exercise the rights and pursue theremedies provided in the lease contract, which may include aright to cancel the lease, and in section 400.2A-519(3).

(4) If a lessor has breached a warranty, whether express orimplied, the lessee may recover damages (Section 400.2A-519(4)).

(5) On rightful rejection or justifiable revocation ofacceptance, a lessee has a security interest in goods in thelessee's possession or control for any rent and security that hasbeen paid and any expenses reasonably incurred in theirinspection, receipt, transportation, and care and custody and mayhold those goods and dispose of them in good faith and in acommercially reasonable manner, subject to section 400.2A-527(5).

(6) Subject to the provisions of section 400.2A-407, alessee, on notifying the lessor of the lessee's intention to doso, may deduct all or any part of the damages resulting from anydefault under the lease contract from any part of the rent stilldue under the same lease contract.

(L. 1992 S.B. 448)