2012 Pennsylvania Consolidated Statutes
Title 13 - COMMERCIAL CODE
Chapter 2A5 - Default
Section 2A516 - Effect of acceptance of goods; notice of default; burden of establishing default after acceptance; notice of claim or litigation to person answerable over

     § 2A516.  Effect of acceptance of goods; notice of default;
                burden of establishing default after acceptance;
                notice of claim or litigation to person answerable
                over.
        (a)  Payment for accepted goods.--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.
        (b)  Effect of acceptance on remedies for default.--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 division or the lease agreement for
     nonconformity.
        (c)  Notice of default and burden of proof.--If a tender has
     been accepted:
            (1)  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;
            (2)  except in the case of a consumer lease, within a
        reasonable time after the lessee receives notice of
        litigation for infringement or the like (section 2A211), the
        lessee shall notify the lessor or be barred from any remedy
        over for liability established by the litigation; and
            (3)  the burden is on the lessee to establish any
        default.
        (d)  Notice of litigation to person answerable over.--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:
            (1)  The lessee may give the lessor or the supplier
        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 litigations, then,
        unless the person notified after seasonable receipt of the
        notice does come in and defend, that person is so bound.
            (2)  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 (section 2A211) 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.
        (e)  Obligation of lessee to hold lessor or supplier
     harmless.--Subsections (c) and (d) apply to any obligation of a
     lessee to hold the lessor or the supplier harmless against
     infringement or the like (section 2A211).

        Cross References.  Section 2A516 is referred to in section
     2A519 of this title.