Printable Format84-2a-512. Lessee's duties as to rightfully rejected goods. (1) Except as otherwise provided with respect to goods that threaten to decline in value speedily (K.S.A. 84-2a-511) and subject to any security interest of a lessee (K.S.A. 84-2a-508(5)):
(a) The lessee, after rejection of goods in the lessee's possession, shall hold them with reasonable care at the lessor's or supplier's disposition for a reasonable time after the lessee's seasonable notification of rejection;
(b) if the lessor or the supplier gives no instructions within a reasonable time after notification of rejection, the lessee may store the rejected goods for the lessor's or the supplier's account or ship them to the lessor or the supplier or dispose of them for the lessor's or the supplier's account with reimbursement in the manner provided in K.S.A. 84-2a-511; but
(c) the lessee has no further obligations with regard to goods rightfully rejected.
(2) Action by the lessee pursuant to subsection (1) is not acceptance or conversion.
History: L. 1991, ch. 295, ยง 60; February 1, 1992.
KANSAS COMMENT, 1996
1. A lessee's duties as to rightfully rejected goods are set out in this section. The section combines provisions from two sections of Article 2. See 84-2-602(2)(b), (c) and 84-2-604. Additional duties of merchant lessees on rightful rejection are contained in the previous section. See 84-2a-511. This section is expressly subject to any security interest of the lessee in the goods under 84-2a-508(5). In such a case, the lessee may hold the goods to enforce its security interest.
2. A lessee that rightfully rejects goods must hold the goods with reasonable care for sufficient time for the seller to remove them. If the seller fails to give instructions within a reasonable time, the lessee may store the rejected goods, reship the goods to the seller, or dispose of the goods for the seller's account and be reimbursed for expenses under 84-2a-511.