(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:

Terms Used In Utah Code 70A-2a-514

  • Goods: means all things that are movable at the time of identification to the lease contract, or are fixtures. See Utah Code 70A-2a-103
  • Lessee: means a person who acquires the right to possession and use of goods under a lease. See Utah Code 70A-2a-103
  • Lessor: means a person who transfers the right to possession and use of goods under a lease. See Utah Code 70A-2a-103
  • State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
  • Supplier: means a person from whom a lessor buys or leases goods to be leased under a finance lease. See Utah Code 70A-2a-103
  • Writing: includes :Utah Code 68-3-12.5
(a)  if, stated seasonably, the lessor or the supplier could have cured it as provided in Section 70A-2a-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.

Amended by Chapter 42, 2006 General Session