Sec. 42a-2A-732. Effect of acceptance; notice of default; burden of establishing default after acceptance; notice of claim or litigation to person answerable over.
Sec. 42a-2A-732. Effect of acceptance; notice of default; burden of establishing default after acceptance; notice of claim or litigation to person answerable over.
(a) A lessee shall pay rent in accordance with the lease contract for any goods accepted.
(b) Acceptance of goods by a lessee precludes rejection of the goods accepted but
does not by itself impair any other remedy provided by this article or the lease agreement
for nonconformity.
(c) If a tender of delivery has been accepted, the following rules apply:
(1) The lessee, or a person entitled to enforce a warranty or warranty obligation,
shall notify the party claimed against within a reasonable time after the default or breach
of warranty was discovered or should have been discovered. However, a failure to give
timely notice bars the lessee from a remedy only to the extent that the party entitled to
notice establishes that the party was prejudiced by the failure.
(2) Except in the case of a consumer lease, if a claim for infringement or the like
is made against a lessee for which a lessor or supplier is answerable over and the lessee
is sued as a result of such claim, the lessee shall notify the lessor or supplier within a
reasonable time after receiving notice of the litigation or be barred from any remedy
over for liability established by the litigation.
(d) A lessee has the burden of establishing a default with respect to goods accepted.
A person entitled to enforce a warranty obligation under section 42a-2A-508 has the
burden of establishing that the warranty was breached.
(e) In a claim for breach of a warranty, indemnity or other obligation against the
lessee for which another party is answerable over, the following rules apply:
(1) The lessee may give notice of the litigation to the other party in a record, and
the person notified may then give similar notice of the litigation to any other person that
is answerable over. If the notice invites the person notified to intervene in the litigation
and defend and states that failure to do so will bind the person notified in any action
later brought by the lessor as to any determination of fact common to the two actions,
the person notified is so bound, unless, after seasonable receipt of the notice, the person
notified intervenes in the litigation and defends.
(2) If the claim is one for infringement or the like, the original lessor or supplier
may demand in a record that its lessee turn over control of the litigation, including
settlement, or otherwise be barred from any remedy over. If the lessor or supplier also
agrees to bear all expense and to satisfy any adverse judgment, the lessee is so barred
unless, after seasonable receipt of the demand, control is turned over to the lessor or
supplier.
(f) Subsections (c), (d) and (e) of this section apply to an obligation of a lessee to
hold the lessor or the supplier harmless against infringement or the like.
(P.A. 02-131, S. 85.)