Michigan Notice by Buyer of Rejection of Goods Based on Obvious Nonconformity

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Multi-State
Control #:
US-02883BG
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Description

Section 2-504 of the Uniform Commercial Code provides in part as follows:


Where the seller is required or authorized to send the goods to the buyer and the contract does not require him to deliver them at a particular destination, then unless otherwise agreed he must


" Put the goods in the possession of such a carrier and make such a contract for their transportation as may be reasonable having regard to the nature of the goods and other circumstances of the case; and

" Obtain and promptly deliver or tender in due form any document necessary to enable the buyer to obtain possession of the goods or otherwise required by the agreement or by usage of trade; and

" promptly notify the buyer of the shipment.

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FAQ

Acceptance may be revoked under section 2-608(1)(b) if the acceptance was reasonably induced by difficulty of discovery before acceptance or by the seller's assurances that the non-conformity would be corrected.

(2) Acceptance of goods by the buyer precludes rejection of the goods accepted and, if made with knowledge of a nonconformity, cannot be revoked because of it unless the acceptance was on the reasonable assumption that the nonconformity would be seasonably cured.

A fundamental principle of contract law is that a party that accepts the delivery of nonconforming goods must pay the full contract price.

If either the goods or their tender fails to conform to the contract in any respect, the buyer or lessee must reject all of the goods. A buyer who rightfully rejects nonconforming goods may obtain cover or cancel the contact, but may not seek damages.

Buyer's Rejection A rejection must occur within a reasonable time after the delivery of the goods. The buyer must promptly notify the seller of the rejection. The buyer must give the seller an opportunity to correct the problem with the goods. The rejection must occur before the buyer accepts the goods.

(1) The buyer may revoke his acceptance of a lot or commercial unit whose nonconformity substantially impairs its value to him if he has accepted it (a) On the reasonable assumption that its nonconformity would be cured and it has not been seasonably cured; or (b) Without discovery of such nonconformity if his ...

(2) Revocation of acceptance must occur within a reasonable time after the buyer discovers or should have discovered the ground for it and before any substantial change in condition of the goods which is not caused by their own defects. It is not effective until the buyer notifies the seller of it.

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Michigan Notice by Buyer of Rejection of Goods Based on Obvious Nonconformity