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Can you summarize MNST 336.2A-516?
UNIFORM COMMERCIAL CODE > EFFECT OF ACCEPTANCE OF GOODS; NOTICE OF DEFAULT; BURDEN OF ESTABLISHING DEFAULT AFTER ACCEPTANCE; NOTICE OF CLAIM OR LITIGATION TO PERSON ANSWERABLE OVER.
Short Summary
This legal document, part of the Minnesota Statutes under the Trade Regulations and Consumer Protection section, pertains to the effect of acceptance of goods in lease contracts. It states that a lessee must pay rent for any goods accepted in accordance with the lease contract, with due allowance for rejected or undelivered goods. Acceptance of goods by a lessee precludes rejection, except in cases of finance leases where acceptance cannot be revoked if made with knowledge of a nonconformity. The document also outlines the lessee’s obligation to notify the lessor and supplier of any default within a reasonable time after discovery, failing which the lessee may be barred from any remedy. Additionally, it establishes that the burden of establishing any default lies with the lessee. In cases where a lessee is sued for breach of warranty or obligation, the lessee may give written notice of the litigation to the lessor or supplier, who may then choose to defend the action. Failure to comply with such notice may result in the lessee being bound by any determination of fact common to both litigations. The document also allows the lessor or supplier to demand control of the litigation, including settlement, and failure to comply may bar the lessee from any remedy over. These provisions also apply to the lessee’s obligation to hold the lessor or supplier harmless against infringement or similar claims. No specific penalties are mentioned in this document.
Whom does it apply to?
Lessees and lessors involved in lease contracts for goods.
What does it govern?
Effect of acceptance of goods; Notice of default; Burden of establishing default after acceptance; Notice of claim or litigation to person answerable over.
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Minnesota