TITLE 28

COMMERCIAL TRANSACTIONS

CHAPTER 12

UNIFORM COMMERCIAL CODE — LEASES

PART 5.

DEFAULT

28-12-514.  Waiver of lessee’s objections. (1) In rejecting goods, a lessee’s failure to state a particular defect that is ascertainable by reasonable inspection precludes the lessee from relying on the defect to justify rejection or to establish default:

(a)  If, stated seasonably, the lessor or the supplier could have cured it (section 28-12-513); or

(b)  Between merchants if the lessor or the supplier after rejection has made a request in writing for a full and final written statement of all defects on which the lessee proposes to rely.

(2)  A lessee’s failure to reserve rights when paying rent or other consideration against documents precludes recovery of the payment for defects apparent in the documents.

History:

[28-12-514, added 1993, ch. 287, sec. 1, p. 1005; am. 2004, ch. 42, sec. 16, p. 112.]