§ 6A-2.1-516 - Effect of acceptance of goods; notice of default; Burden of establishing default after acceptance; Notice of claim or litigation to person answerable over.
SECTION 6A-2.1-516
§ 6A-2.1-516 Effect of acceptance ofgoods; 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 leasecontract, with due allowance for goods rightfully rejected or not delivered.
(2) A lessee's acceptance of goods precludes rejection of thegoods accepted. In the case of a finance lease, if made with knowledge of anonconformity, acceptance cannot be revoked because of it. In any other case,if made with knowledge of a nonconformity, acceptance cannot be revoked becauseof it unless the acceptance was on the reasonable assumption that thenonconformity would be seasonably cured. Acceptance does not of itself impairany other remedy provided by this chapter or the lease agreement fornonconformity.
(3) If a tender has been accepted:
(a) Within a reasonable time after the lessee discovers orshould have discovered any default, the lessee shall notify the lessor and thesupplier, if any, or be barred from any remedy against the party not notified;
(b) Except in the case of a consumer lease, within areasonable time after the lessee receives notice of litigation for infringementor the like (§ 6A-2.1-211) the lessee shall notify the lessor or be barredfrom any remedy over any liability established by the litigation; and
(c) The burden is on the lessee to establish any default.
(4) If a lessee is sued for breach of a warranty or otherobligation for which a lessor or a supplier is answerable over, the followingapply:
(a) The lessee may give the lessor or the supplier, or both,written notice of the litigation. If the notice states that the person notifiedmay come in and defend and that if the person notified does not do so thatperson will be bound in any action against that person by the lessee by anydetermination of fact common to the two litigations, then unless the personnotified after seasonable receipt of the notice does come in and defend thatperson is so bound.
(b) The lessor or the supplier may demand in writing that thelessee turn over control of the litigation including settlement if the claim isone for infringement or the like (§ 6A-2.1-211) or else be barred from anyremedy over. If the demand states that the lessor or the supplier agrees tobear all expense and to satisfy any adverse judgment, then unless the lesseeafter seasonable receipt of the demand does turn over control the lessee is sobarred.
(5) Subsections (3) and (4) apply to any obligation of alessee to hold the lessor or the supplier harmless against infringement or thelike (§ 6A-2.1-211).