S.B. 147

VETOES

(1)      SUBJECT TO THE PROVISIONS OF § 2A-510 ON DEFAULT IN INSTALLMENT
LEASE CONTRACTS, IF THE GOODS OR THE TENDER OR DELIVERY FAIL IN ANY
RESPECT TO CONFORM TO THE LEASE CONTRACT, THE LESSEE MAY REJECT OR
ACCEPT THE GOODS OR ACCEPT ANY COMMERCIAL UNIT OR UNITS AND REJECT
THE REST OF THE GOODS.

(2)      REJECTION OF GOODS IS INEFFECTIVE UNLESS IT IS WITHIN A
REASONABLE TIME AFTER TENDER OR DELIVERY OF THE GOODS AND THE LESSEE
SEASONABLY NOTIFIES THE LESSOR.

2A-510. INSTALLMENT LEASE CONTRACTS REJECTION AND DEFAULT

(1)      UNDER AN INSTALLMENT LEASE AGREEMENT, A LESSEE MAY REJECT
ANY DELIVERY THAT IS NONCONFORMING IF THE NONCONFORMITY
SUBSTANTIALLY IMPAIRS THE VALUE OF THAT DELIVERY AND CANNOT BE CURED
OR THE NONCONFORMITY IS A DEFECT IN THE REQUIRED DOCUMENTS; BUT IF THE
NONCONFORMITY DOES NOT FALL WITHIN SUBSECTION (2) AND THE LESSOR OR
THE SUPPLIER GIVES ADEQUATE ASSURANCE OF ITS CURE, THE LESSEE MUST
ACCEPT THAT DELIVERY.

(2)      WHENEVER NONCONFORMITY OR DEFAULT WITH RESPECT TO ONE OR
MORE DELIVERIES SUBSTANTIALLY IMPAIRS THE VALUE OF THE INSTALLMENT
LEASE CONTRACT AS A WHOLE THERE IS A DEFAULT WITH RESPECT TO THE
WHOLE. BUT, THE AGGRIEVED PARTY REINSTATES THE INSTALLMENT LEASE
CONTRACT AS A WHOLE IF THE AGGRIEVED PARTY ACCEPTS A NONCONFORMING
DELIVERY WITHOUT SEASONABLY NOTIFYING OF CANCELLATION OR BRINGS AN
ACTION WITH RESPECT ONLY TO PAST DELIVERIES OR DEMANDS PERFORMANCE AS
TO FUTURE DELIVERIES.

2A-511. MERCHANT LESSEE'S DUTIES AS TO RIGHTFULLY REJECTED GOODS

(1) IF A LESSOR OR A SUPPLIER HAS NO AGENT OR PLACE OF BUSINESS AT
THE MARKET OF REJECTION, A MERCHANT LESSEE, AFTER REJECTION OF GOODS IN
HIS (OR HER) POSSESSION OR CONTROL, SHALL FOLLOW ANY REASONABLE
INSTRUCTIONS RECEIVED FROM THE LESSOR OR THE SUPPLIER WITH RESPECT TO
THE GOODS.. IN THE ABSENCE OF THOSE. INSTRUCTIONS, A MERCHANT LESSEE
SHALL MAKE REASONABLE EFFORTS TO SELL, LEASE, OR OTHERWISE DISPOSE OF
THE GOODS FOR THE LESSOR'S ACCOUNT IF THEY THREATEN TO DECLINE IN VALUE
SPEEDILY. INSTRUCTIONS ARE NOT REASONABLE IF ON DEMAND INDEMNITY FOR
EXPENSES IS NOT FORTHCOMING.

(2) IF A MERCHANT LESSEE (SUBSECTION (1)) OR ANY OTHER LESSEE (§
2A-512 OF THIS SUBTITLE) DISPOSES OF GOODS, HE (OR SHE) IS ENTITLED TO
REIMBURSEMENT EITHER FROM THE LESSOR OR THE SUPPLIER OR OUT OF THE
PROCEEDS FOR REASONABLE EXPENSES OF CARING FOR AND DISPOSING OF THE
GOODS AND, IF THE EXPENSES INCLUDE NO DISPOSITION COMMISSION, TO SUCH
COMMISSION AS IS USUAL IN THE TRADE OR, IF THERE IS NONE, TO A REASONABLE
SUM NOT EXCEEDING 10 PERCENT OF THE GROSS PROCEEDS.

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