Title 28, COMMERCIAL TRANSACTIONS

28-12-508. Lessee’s remedies. (1) If a lessor fails to deliver the goods in conformity to the lease contract (section 28-12-509) or repudiates the lease contract (section 28-12-402), or a lessee rightfully rejects the goods (section 28-12-509) or justifiably revokes acceptance of…

28-12-509. Lessee’s rights on improper delivery — Rightful rejection. (1) Subject to the provisions of section 28-12-510 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 o…

28-12-510. Installment lease contracts — Rejection and default. (1) Under an installment lease contract 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 defec…

28-12-511. Merchant lessee’s duties as to rightfully rejected goods. (1) Subject to any security interest of a lessee (section 28-12-508(5)), 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…

28-12-512. Lessee’s duties as to rightfully rejected goods. (1) Except as otherwise provided with respect to goods that threaten to decline in value speedily (section 28-12-511) and subject to any security interest of a lessee (section 28-12-508(5)): (a) The lessee, after rejecti…

28-12-513. Cure by lessor of improper tender or delivery — Replacement. (1) If any tender or delivery by the lessor or the supplier is rejected because nonconforming and the time for performance has not yet expired, the lessor or the supplier may seasonably notify the lessee of t…

28-12-514. Waiver of lessee’s objections. (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: (a) If, stated seasonably…

28-12-515. Acceptance of goods. (1) Acceptance of goods occurs after the lessee has had a reasonable opportunity to inspect the goods and: (a) The lessee signifies or acts with respect to the goods in a manner that signifies to the lessor or the supplier that the goods are confor…

28-12-516. Effect of acceptance of goods — Notice of default — Burden of establishing default after acceptance — Notice of claim or litigation to person answerable over. (1) A lessee must pay rent for any goods accepted in accordance with the lease contract, with due allowance fo…

28-12-517. 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 th…

28-12-518. Cover — Substitute goods. (1) After a default by a lessor under the lease contract of the type described in section 28-12-508(1), or, if agreed, after other default by the lessor, the lessee may cover by making any purchase or lease of or contract to purchase or lease …

28-12-519. Lessee’s damages for nondelivery, repudiation, default, and breach of warranty in regard to accepted goods. (1) Except as otherwise provided with respect to damages liquidated in the lease agreement (section 28-12-504) or otherwise determined pursuant to agreement of t…

28-12-520. Lessee’s incidental and consequential damages. (1) Incidental damages resulting from a lessor’s default include expenses reasonably incurred in inspection, receipt, transportation, and care and custody of goods rightfully rejected or goods the acceptance of which is ju…

28-12-521. Lessee’s right to specific performance or replevin. (1) Specific performance may be decreed if the goods are unique or in other proper circumstances. (2) A decree for specific performance may include any terms and conditions as to payment of the rent, damages, or other…

28-12-522. Lessee’s right to goods on lessor’s insolvency. (1) Subject to the provisions of subsection (2) of this section and even though the goods have not been shipped, a lessee who has paid a part or all of the rent and security for goods identified to a lease contract (secti…

28-12-523. Lessor’s remedies. (1) If a lessee wrongfully rejects or revokes acceptance of goods or fails to make a payment when due or repudiates with respect to a part or the whole, then, with respect to any goods involved, and with respect to all of the goods if under an instal…

28-12-524. Lessor’s right to identify goods to lease contract. (1) After default by the lessee under the lease contract of the type described in section 28-12-523(1) or section 28-12-523(3)(a) or, if agreed, after other default by the lessee, the lessor may: (a) Identify to the l…

28-12-525. Lessor’s right to possession of goods. (1) If a lessor discovers the lessee to be insolvent, the lessor may refuse to deliver the goods. (2) After a default by the lessee under the lease contract of the type described in section 28-12-523(1) or 28-12-523(3)(a) or, if a…

28-12-526. Lessor’s stoppage of delivery in transit or otherwise. (1) A lessor may stop delivery of goods in the possession of a carrier or other bailee if the lessor discovers the lessee to be insolvent and may stop delivery of carload, truckload, planeload or larger shipments o…

28-12-527. Lessor’s rights to dispose of goods. (1) After a default by a lessee under the lease contract of the type described in section 28-12-523(1) or 28-12-523(3)(a) or after the lessor refuses to deliver or takes possession of goods (section 28-12-525 or 28-12-526), or, if a…

28-12-528. Lessor’s damages for nonacceptance, failure to pay, repudiation, or other default. (1) Except as otherwise provided with respect to damages liquidated in the lease agreement (section 28-12-504) or otherwise determined pursuant to agreement of the parties (sections 28-1…

28-12-529. Lessor’s action for the rent. (1) After default by the lessee under the lease contract of the type described in section 28-12-523(1) or 28-12-523(3)(a) or, if agreed, after other default by the lessee, if the lessor complies with the provisions of subsection (2) of thi…

28-12-530. Lessor’s incidental damages. Incidental damages to an aggrieved lessor include any commercially reasonable charges, expenses or commissions incurred in stopping delivery, in the transportation, care and custody of goods after the lessee’s default, in connection with re…

28-12-531. Standing to sue third parties for injury to goods. (1) If a third party so deals with goods that have been identified to a lease contract as to cause actionable injury to a party to the lease contract (i) the lessor has a right of action against the third party, and (i…

28-12-532. Lessor’s rights to residual interest. In addition to any other recovery permitted in this chapter or other law, the lessor may recover from the lessee an amount that will fully compensate the lessor for any loss of or damage to the lessor’s residual interest in the goo…