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

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Multi-State
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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

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.

Also, a buyer isn't bound to pay for the non-conforming goods they reject. For instance, a buyer orders red mugs from a seller but the seller supplies blue mugs instead. The supply doesn't perfectly match the specific request ing to the UCC requirements because of the difference in colors.

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

Basics of Rejection If the goods offered in a contract do not conform to their contractual description, the buyer has the right to reject those goods. If the buyer wants to reject the goods, however, they should make their rejection within a reasonable amount of time after delivery.

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.

Under UCC, Section 2-601(a), rejection is allowed if the seller fails to make a perfect tender. The rejection must be made within a reasonable time after delivery or tender. Once it is made, the buyer may not act as the owner of the goods.

Process for Rejection of Goods The buyer is responsible for providing a notice of rejection letter to the supplier describing the defect(s) that renders the delivery as non-conforming to the Contract/PO, what the delivery and inspection criterion was, and how the delivered product does not conform.

? Perfect Tender Rule: If the goods delivered or the tender. of delivery fail in any respect to conform with the terms of the contract, the buyer has the right to (i) accept the goods, (ii) reject the entire shipment, or (iii) accept part and reject part. ? Exceptions to the Perfect Tender Rule.

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