Ch. 535

1994 LAWS OF MARYLAND

(4)      IF A LESSEE IS SUED FOR BREACH OF A WARRANTY OR OTHER
OBLIGATION FOR WHICH A LESSOR OR A SUPPLIER IS ANSWERABLE OVER, THE
FOLLOWING APPLY:

(A)     THE LESSEE MAY GIVE THE LESSOR OR THE SUPPLIER, OR BOTH,
WRITTEN NOTICE OF THE LITIGATION. IF THE NOTICE STATES THAT THE PERSON
NOTIFIED MAY COME IN AND DEFEND AND THAT IF THE PERSON NOTIFIED DOES
NOT DO SO THAT PERSON WILL BE BOUND IN ANY ACTION AGAINST THAT PERSON
BY THE LESSEE BY ANY DETERMINATION OF FACT COMMON TO THE TWO
LITIGATIONS, THEN, UNLESS THE PERSON NOTIFIED AFTER SEASONABLE RECEIPT
OF THE NOTICE DOES COME IN AND DEFEND, THAT PERSON IS SO BOUND.

(B)     THE LESSOR OR THE SUPPLIER MAY DEMAND IN WRITING THAT THE
LESSEE TURN OVER CONTROL OF THE LITIGATION INCLUDING SETTLEMENT IF THE
CLAIM IS ONE FOR INFRINGEMENT OR THE LIKE (§ 2A-211) OR ELSE BE BARRED
FROM ANY REMEDY OVER. IF THE DEMAND STATES THAT THE LESSOR OR THE
SUPPLIER AGREES TO BEAR ALL EXPENSE AND TO SATISFY ANY ADVERSE
JUDGMENT, THEN UNLESS THE LESSEE AFTER SEASONABLE RECEIPT OF THE
DEMAND DOES TURN OVER CONTROL, THE LESSEE IS SO BARRED.

(5)      SUBSECTIONS (3) AND (4) APPLY TO ANY OBLIGATION OF A LESSEE TO
HOLD THE LESSOR OR THE SUPPLIER HARMLESS AGAINST INFRINGEMENT OR THE
LIKE (§2A-211).

(6)      SUBSECTION (3) SHALL NOT APPLY TO A CONSUMER LEASE.
2A-517. REVOCATION OF ACCEPTANCE OF GOODS

(1) A LESSEE MAY REVOKE ACCEPTANCE OF A LOT OR COMMERCIAL UNIT
WHOSE NONCONFORMITY SUBSTANTIALLY IMPAIRS ITS VALUE TO THE LESSEE IF
THE LESSEE HAS ACCEPTED IT:

(A)     EXCEPT IN THE CASE OF A FINANCE LEASE, ON THE REASONABLE
ASSUMPTION THAT ITS NONCONFORMITY WOULD BE CURED AND IT HAS NOT BEEN
SEASONABLY CURED; OR

(B)      WITHOUT DISCOVERY OF THE NONCONFORMITY IF THE LESSEE'S
ACCEPTANCE WAS REASONABLY INDUCED EITHER BY THE LESSOR'S ASSURANCES
OR, EXCEPT IN THE CASE OF A FINANCE LEASE, BY THE DIFFICULTY OF DISCOVERY
BEFORE ACCEPTANCE.

(2)      EXCEPT IN THE CASE OF A FINANCE LEASE THAT IS NOT A CONSUMER
LEASE, A LESSEE MAY REVOKE ACCEPTANCE OF A LOT OR COMMERCIAL UNIT IF
THE LESSOR COMMITS A DEFAULT UNDER THE LEASE CONTRACT AND THE
DEFAULT SUBSTANTIALLY IMPAIRS THE VALUE OF THAT LOT OR COMMERCIAL
UNIT TO THE LESSEE.

(3)      IF THE LEASE AGREEMENT SO PROVIDES, THE LESSEE MAY REVOKE
ACCEPTANCE OF A LOT OR COMMERCIAL UNIT FOR OTHER DEFAULTS BY THE
LESSOR.

- 2540 -