N.Y. Uniform Commercial Code 2-A-512 – Lessee's Duties as to Rightfully Rejected Goods
Section 2-A-512. Lessee's Duties as to Rightfully Rejected Goods.
Terms Used In N.Y. Uniform Commercial Code 2-A-512
- Goods: means all things that are movable at the time of
identification to the lease contract, or are fixtures
(Section 2-A-309), 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 N.Y. Uniform Commercial Code 2-A-103 - Lessee: means a person who acquires the right to possession
and use of goods under a lease. See N.Y. Uniform Commercial Code 2-A-103 - Lessor: means a person who transfers the right to possession
and use of goods under a lease. See N.Y. Uniform Commercial Code 2-A-103 - Supplier: means a person from whom a lessor buys or leases
goods to be leased under a finance lease. See N.Y. Uniform Commercial Code 2-A-103
(1) Except as otherwise provided with respect to goods that threaten to decline in value speedily (Section 2-A-511) and subject to any security interest of a lessee (Section 2-A-508(5)):
(a) 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;
(b) 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 2-A-511;
but
(c) the lessee has no further obligations with regard to goods
rightfully rejected.
(2) Action by the lessee pursuant to subsection (1) is not acceptance or conversion.