North Carolina Notice by Buyer of Rejection of Goods - Risk of Loss Remains on Seller

State:
Multi-State
Control #:
US-02882BG
Format:
Word; 
Rich Text
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Description

In this form the buyer giving notice of its rejecting delivery of the goods. This is covered by Section 2-602 of the Uniform Commercial Code, which state:


Rejection of goods must be within a reasonable time after their delivery or tender. It is ineffective unless the buyer seasonably notifies the seller. Subject to the provisions of the two following sections on rejected goods (Sections 2-603 and 2-604). After rejection any exercise of ownership by the buyer with respect to any commercial unit is wrongful as against the seller; and


" If the buyer has before rejection taken physical possession of goods in which he does not have a security interest under the provisions of this Article (subsection (3) of Section 2-711), he is under a duty after rejection to hold them with reasonable care at the seller's disposition for a time sufficient to permit the seller to remove them; but


" The buyer has no further obligations with regard to goods rightfully rejected.

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FAQ

§ 25-2-209. Modification, rescission and waiver. (2) A signed agreement which excludes modification or rescission except by a signed writing cannot be otherwise modified or rescinded, but except as between merchants such a requirement on a form supplied by the merchant must be separately signed by the other party.

Section 69(1) of the Uniform Sales Act provides: "Where there is a breach of warranty by the seller, the buyer may, at his election: (a) accept or keep the goods [and recoup or recover damages, or] ; (b) refuse to accept the goods . . .; (c) rescind the contract to sell or the sale." In this article, "rejection" refers ...

North Carolina has specific statutes regarding defective vehicles. A breach of the implied warranty of merchantability occurs when a product fails to perform in a manner that ordinary buyers of that particular product would expect.

Under Article 2, if the goods 'fail in any respect to conform to the contract,' then the buyer can reject the goods. Rejection simply means that the buyer refuses, or doesn't keep, the goods.

In order to establish breach of contract, a plaintiff must establish: 1) a valid and enforceable contract; 2) performance by the plaintiff; 3) breach by the defendant; and 4) injury arising as a result of defendant's breach.

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.

A seller's legal remedies include: Canceling the contract. Withholding or not delivering the goods. Reclaiming the goods. Reselling the goods and recovering damages for the difference in price. Recovering damages based on the current market price.

Once the buyer accepts, she is obligated to pay at the contract rate and loses the right to reject the goods. Uniform Commercial Code, Section 2-607.

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North Carolina Notice by Buyer of Rejection of Goods - Risk of Loss Remains on Seller