S.B. 147

VETOES

2A-503. MODIFICATION OR IMPAIRMENT OF RIGHTS AND REMEDIES

(1)      EXCEPT AS OTHERWISE PROVIDED IN THIS ARTICLE, THE LEASE
AGREEMENT MAY INCLUDE RIGHTS AND REMEDIES FOR DEFAULT IN ADDITION TO
OR IN SUBSTITUTION FOR THOSE PROVIDED IN THIS ARTICLE AND MAY LIMIT OR
ALTER THE MEASURE OF DAMAGES RECOVERABLE UNDER THIS ARTICLE.

(2)      RESORT TO A REMEDY PROVIDED UNDER THIS ARTICLE OR IN THE
LEASE AGREEMENT IS OPTIONAL UNLESS THE REMEDY IS EXPRESSLY AGREED TO
BE EXCLUSIVE. IF CIRCUMSTANCES CAUSE AN EXCLUSIVE OR LIMITED REMEDY TO
FAIL OF ITS ESSENTIAL PURPOSE, OR PROVISION FOR AN EXCLUSIVE REMEDY IS
UNCONSCIONABLE, REMEDY MAY BE HAD AS PROVIDED IN THIS ARTICLE.

(3)      CONSEQUENTIAL DAMAGES MAY BE LIQUIDATED UNDER § 2A-504, OR
MAY OTHERWISE BE LIMITED, ALTERED, OR EXCLUDED UNLESS THE LIMITATION,
ALTERATION, OR EXCLUSION IS UNCONSCIONABLE. LIMITATION, ALTERATION OR
EXCLUSION OF CONSEQUENTIAL DAMAGES FOR INJURY TO THE PERSON IN THE
CASE OF CONSUMER GOODS IS PRIMA FACIE UNCONSCIONABLE BUT LIMITATION,
ALTERATION OR EXCLUSION OF DAMAGES WHERE THE LOSS IS COMMERCIAL IS
NOT PRIMA FACIE UNCONSCIONABLE.

(4)      RIGHTS AND REMEDIES ON DEFAULT BY THE LESSOR OR THE LESSEE
WITH RESPECT TO ANY OBLIGATION OR PROMISE COLLATERAL OR ANCILLARY TO
THE LEASE CONTRACT ARE NOT IMPAIRED BY THIS ARTICLE.

2A-504. LIQUIDATION OF DAMAGES

(1)      DAMAGES PAYABLE BY EITHER PARTY FOR DEFAULT, OR ANY OTHER
ACT OR OMISSION, INCLUDING INDEMNITY FOR LOSS OR DIMINUTION OF
ANTICIPATED TAX BENEFITS OR LOSS OR DAMAGE TO THE LESSOR'S RESIDUAL
INTEREST, MAY BE LIQUIDATED IN THE LEASE AGREEMENT BUT ONLY AT AN
AMOUNT OR BY A FORMULA THAT IS REASONABLE IN LIGHT OF THE THEN
ANTICIPATED HARM CAUSED BY THE DEFAULT OR OTHER ACT OR OMISSION.

(2)      IF THE LEASE AGREEMENT PROVIDES FOR LIQUIDATION OF DAMAGES,
AND SUCH PROVISION DOES NOT COMPLY WITH SUBSECTION (1), OR SUCH
PROVISION IS AN EXCLUSIVE OR LIMITED REMEDY THAT CIRCUMSTANCES CAUSE
TO FAIL OF ITS ESSENTIAL PURPOSE, REMEDY MAY BE HAD AS PROVIDED IN THIS
ARTICLE.

(3)      IF THE LESSOR JUSTIFIABLY WITHHOLDS OR STOPS DELIVERY OF GOODS
BECAUSE OF THE LESSEE'S DEFAULT OR INSOLVENCY (§ 2A-525 OR § 2A-526), THE
LESSEE IS ENTITLED TO RESTITUTION OF ANY AMOUNT BY WHICH THE SUM OF HIS
(OR HER) PAYMENTS EXCEEDS:

(A) THE AMOUNT TO WHICH THE LESSOR IS ENTITLED BY VIRTUE OF
TERMS LIQUIDATING THE LESSOR'S DAMAGES IN ACCORDANCE WITH SUBSECTION

(1); OR

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