554.13512  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 554.13511) and subject to any security interest of a lessee (section 554.13508, subsection 5):

a.  the lessee, after rejection of goods in the lessee's possession, shall hold them with reasonable care at the lessor's or the supplier's disposition for a reasonable time after the lessee's seasonable notification of rejection;

b.  if the lessor or the supplier gives no instructions within a reasonable time after notification of rejection, the lessee may store the rejected goods for the lessor's or the supplier's account or ship them to the lessor or the supplier or dispose of them for the lessor's or the supplier's account with reimbursement in the manner provided in section 554.13511; but

c.  the lessee has no further obligations with regard to goods rightfully rejected.

2.  Action by the lessee pursuant to subsection 1 is not acceptance or conversion.

Section History: Recent form

  94 Acts, ch 1052, §64

Internal References

  Referred to in § 554.13511


Previous Section 554.13511

Next Section 554.13513


Return To Home index


© 1999 Cornell College and League of Women Voters of Iowa


Comments about this site or page? webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.

Last update: Thu Mar 18 15:00:31 CST 1999
URL: /DOCS/IACODE/1999/554/13512.html
jhf