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Session Laws, 1963
Volume 671, Page 817   View pdf image (33K)
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J. MILLARD TAWES, Governor                        819

the right to inspect, test and sample the goods including such of them
as may be in the possession or control of the other; and

(b) the parties may agree to a third party inspection or survey
to determine the conformity or condition of the goods and may agree
that the findings shall be binding upon them in any subsequent
litigation or adjustment.

Part 6

Breach, Repudiation and Excuse
2
601. Buyer's Rights on Improper Delivery.

Subject to the provisions of this Sub-title on breach in installment
contracts (Section 2
612) and unless otherwise agreed under the
sections on contractual limitations of remedy (Sections 2
718 and
2
719), if the goods or the tender of delivery fail in any respect
to conform to the contract, the buyer may

(a)  reject the whole; or

(b)  accept the whole; or

(c)  accept any commercial unit or units and reject the rest.

2602. Manner and Effect of Rightful Rejection.

(1)  Rejection of goods must be within a reasonable time after
their delivery or tender. It is ineffective unless the buyer seasonably
notifies the seller.

(2)  Subject to the provisions of the two following sections on
rejected goods (Sections 2
603 and 2604),

(a)  after rejection any exercise of ownership by the buyer with
respect to any commercial unit is wrongful as against the seller; and

(b)  if the buyer has before rejection taken physical possession of
goods in which he does not have a security interest under the provi-
sions of this Sub-title (subsection (3) of Section 2
711), he is under
a duty after rejection to hold them with reasonable care at the seller's
disposition for a time sufficient to permit the seller to remove them;
but

(c)  the buyer has no further obligations with regard to goods
rightfully rejected.

(3)   The seller's rights with respect to goods wrongfully rejected
are governed by the provisions of this Sub-title on seller's remedies
in general (Section 2
703).

2603. Merchant Buyer's Duties as to Rightfully Rejected Goods.

(1) Subject to any security interest in the buyer (subsection (3)
of Section 2
711), when the seller has no agent or place of business
at the market of rejection a merchant buyer is under a duty after
rejection of goods in his possession or control to follow any reason-
able instructions received from the seller with respect to the goods
and in the absence of such instructions to make reasonable efforts to
sell them for the seller's account if they are perishable or threaten
to decline in value speedily. Instructions are not reasonable if on
demand indemnity for expenses is not forthcoming.


 

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Session Laws, 1963
Volume 671, Page 817   View pdf image (33K)
 Jump to  
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