Sales and Leases - A Problem-based Approach, 2016a
Sales and Leases - A Problem-based Approach, 2016a
Sales and Leases - A Problem-based Approach, 2016a
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
Chapter 13. Acceptance; Revocation of Acceptance<br />
13.1. Acceptance. Note that as used in this chapter, the term “acceptance” refers to the buyer’s<br />
acceptance of the goods which the buyer has agreed to purchase under a previously formed<br />
contract. It does not refer to acceptance of an offer which leads to formation of a contract.<br />
As discussed in Chapter 12, the perfect tender rule favors the buyer, <strong>and</strong> allows the buyer to<br />
reject for any non-conformity, subject to certain important limitations (including the obligation to<br />
notify the seller of rejection <strong>and</strong> the seller’s right, in certain circumstances, to cure the defect).<br />
Once a buyer has accepted the goods, the rules shift to favor the seller. After acceptance, the<br />
buyer may no longer reject the goods for any non-conformity. Section 2-607(2). The buyer does<br />
have a more limited right, described as revocation of acceptance (the more stringent elements of<br />
which are discussed at § 13.3 below). Under § 2-606(1), acceptance occurs in one of three ways:<br />
13.1.1. Acceptance occurs after a reasonable opportunity to inspect the goods, if the<br />
buyer signifies to the seller that either (i) the goods are conforming or (ii) that the buyer<br />
will take or retain the goods in spite of their non-conformity.<br />
13.1.1.1. Comment 3 states that “payment made after tender is always one<br />
circumstance tending to signify acceptance of the goods but in itself it can never<br />
be more than one circumstance <strong>and</strong> is not conclusive.” (Emphasis supplied.)<br />
13.1.1.2. As we discussed in Chapter 12, what constitutes a “reasonable<br />
opportunity to inspect” is a question of fact. Comment 2 states that course of<br />
performance, course of dealing, <strong>and</strong> usage of trade will be important in<br />
determining what is “reasonable.”<br />
13.1.1.3. Note that if a buyer accepts the goods in spite of their non-conformity,<br />
the buyer is not out of luck. The buyer may have a claim for damages arising from<br />
the non-conformity or, as we shall see in § 13.3, may have the right to revoke<br />
acceptance.<br />
13.1.2. Acceptance occurs after the buyer has had a reasonable opportunity to inspect the<br />
goods, if the buyer fails to make an effective rejection under UCC § 2-602. Recall Miron<br />
v. Yonkers Raceway, Inc., 400 F.2d 112 (2d Cir. 1968) in § 12.4, where the court held that<br />
failure to timely inspect <strong>and</strong> reject a racehorse resulted in acceptance.<br />
13.1.3. The buyer accepts goods if the buyer does any act inconsistent with the seller’s<br />
ownership. This concept is parallel to the buyer’s obligation under UCC § 2-602 not to<br />
“exercise ownership” after the buyer has rejected the goods. However, not all uses<br />
constitute “an act inconsistent with seller’s ownership” or an “exercise of ownership.”<br />
For example, if the buyer only uses the goods for purposes of inspection, such as the test-<br />
187