There is a newer version of the Kentucky Revised Statutes
2009 Kentucky Revised Statutes
Article 2A Leases
355.2A.516 Effect of acceptance of goods -- Notice of default -- Burden of establishing default after acceptance -- Notice of claim or litigation to person answerable over.
Download pdfanswerable over. (1) A lessee must pay rent for any goods accepted in accordance with the lease contract, with due allowance for goods rightfully rejected or not delivered. (2) A lessee's acceptance of goods precludes rejection of the goods accepted. In the case of a finance lease, if made with knowledge of a nonconformity, acceptance cannot
be revoked because of it. In any other case, if made with knowledge of a
nonconformity, acceptance cannot be revoked because of it unless the acceptance
was on the reasonable assumption that the nonconformity would be seasonably
cured. Acceptance does not of itself impair any other remedy provided by this
article or the lease agreement for nonconformity. (3) If a tender has been accepted: (a) Within a reasonable time after the lessee discovers or should have discovered any default, the lessee shall notify the lessor and the supplier, if any, or be
barred from any remedy against the party not notified; (b) Except in the case of a consumer lease, within a reasonable time after the lessee receives notice of litigation for infringement or the like (KRS 355.2A-
211) the lessee shall notify the lessor or be barred from any remedy over for
liability established by the litigation; and (c) The burden is on the lessee to establish any default. (4) If a lessee is sued for breach of a warranty or other obligation for which a lessor or a supplier is answerable over the following apply:
(a) The lessee may give the lessor or the supplier, or both, written notice of the litigation. If the notice states that the person notified may come in and defend
and that if the person notified does not do so, that person will be bound in any
action against that person by the lessee by any determination of fact common
to the two (2) litigations, then unless the person notified after seasonable
receipt of the notice does come in and defend that person is so bound. (b) The lessor or the supplier may demand in writing that the lessee turn over control of the litigation including settlement if the claim is one for
infringement or the like (KRS 355.2A-211) or else be barred from any remedy
over. If the demand states that the lessor or the supplier agrees to bear all
expense and to satisfy any adverse judgment, then unless the lessee after
seasonable receipt of the demand does turn over control the lessee is so
barred. (5) Subsections (3) and (4) apply to any obligation of a lessee to hold the lessor or the supplier harmless against infringement or the like (KRS 355.2A-211). Effective: January 1, 1993
History: Amended 1992 Ky. Acts ch. 116, sec. 14, effective January 1, 1993 -- Created 1990 Ky. Acts ch. 363, sec. 63, effective January 1, 1991.
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