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Can you summarize MNST 336.2A-209?
UNIFORM COMMERCIAL CODE > LESSEE UNDER FINANCE LEASE AS BENEFICIARY OF SUPPLY CONTRACT.
Short Summary
This provision states that the lessee, under a finance lease related to a supply contract, is entitled to the benefit of the supplier’s promises and warranties provided in connection with the supply contract. However, this benefit is subject to the terms of the warranty and supply contract, as well as any defenses or claims arising from the supply contract. It clarifies that the extension of this benefit does not modify the rights and obligations of the parties to the supply contract or impose any duty or liability on the lessee. Additionally, it explains that any modification or rescission of the supply contract by the supplier and lessor is effective between the supplier and lessee, unless the supplier has received notice of the lessee’s finance lease. In such cases, the lessor assumes the modified or rescinded obligations of the supplier to the lessee. Furthermore, the lessee retains all rights against the supplier that arise from their agreement or under other law.
Whom does it apply to?
This provision applies to the lessee who has entered into a finance lease related to the supply contract.
What does it govern?
The benefit of a supplier's promises to the lessor under the supply contract and all warranties, whether express or implied, extends to the lessee to the extent of the lessee's leasehold interest under a finance lease related to the supply contract.
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Minnesota