California Commercial Code 10512 – (a) Except as otherwise provided with respect to goods that …
(a) Except as otherwise provided with respect to goods that threaten to decline in value speedily (Section 10511) and subject to any security interest of a lessee (subdivision (e) of Section 10508):
(1) 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;
Terms Used In California Commercial Code 10512
- Goods: means all things that are movable at the time of identification to the lease contract, or are fixtures (Section 10309), but the term does not include money, documents, instruments, accounts, chattel paper, general intangibles, or minerals or the like, including oil and gas, before extraction. See California Commercial Code 10103
- Lessee: means a person who acquires the right to possession and use of goods under a lease. See California Commercial Code 10103
- Lessor: means a person who transfers the right to possession and use of goods under a lease. See California Commercial Code 10103
- Security interest: includes any interest of a consignor and a buyer of accounts, chattel paper, a payment intangible, or a promissory note in a transaction that is subject to Division 9 (commencing with Section 9101). See California Commercial Code 1201
- Supplier: means a person from whom a lessor buys or leases goods to be leased under a finance lease. See California Commercial Code 10103
(2) 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 10511; but
(3) The lessee has no further obligations with regard to goods rightfully rejected.
(b) Action by the lessee pursuant to subdivision (a) is not acceptance or conversion.
(Amended by Stats. 1991, Ch. 111, Sec. 50. Effective July 15, 1991.)