Source: L. 65: p. 1326, § 1. C.R.S. 1963: § 155-2-513.
Prior Uniform Statutory Provision: Section 47(2), (3), Uniform Sales Act.
Changes: Rewritten, Subsections (2) and (3) being new.
Purposes of Changes and New Matter: To correspond in substance with the prior uniform statutory provision and to incorporate in addition some of the results of the better case law so that:
The last sentence of subsection (1) makes it clear that the place of arrival of shipped goods is a reasonable place for their inspection.
Where by the agreement the documents are to be held until arrival the buyer is entitled to inspect before payment since the goods are then "available for inspection". Proof of usage is not necessary to establish this right, but if inspection before payment is disputed the contrary must be established by usage or by an explicit contract term to that effect.
For the same reason, that the goods are available for inspection, a term calling for payment against storage documents or a delivery order does not normally bar the buyer's right to inspection before payment under subsection (3)(b). This result is reinforced by the buyer's right under subsection (1) to inspect goods which have been appropriated with notice to him.
Since the purpose of an agreed place of inspection is only to make sure at that point whether or not the goods will be thrown back, the "exclusive" feature of the named place is satisfied under this Article if the buyer's failure to inspect there is held to be an acceptance with the knowledge of such defects as inspection would have revealed within the section on waiver of buyer's objections by failure to particularize. Revocation of the acceptance is limited to the situations stated in the section pertaining to that subject. The reasonable time within which to give notice of defects within the section on notice of breach begins to run from the point of the "acceptance."
Cross References:
Generally: Sections 4-2-310(b), 4-2-321(3) and 4-2-606(1)(b).
Point 1: Section 4-2-607.
Point 2: Sections 4-2-501 and 4-2-502.
Point 4: Section 4-2-715.
Point 5: Section 4-2-321(3).
Point 6: Sections 4-2-606 to 4-2-608.
Point 7: Section 4-1-204.
Point 8: Comment to Section 4-2-401.
Point 9: Section 4-2-316(3)(b).
Definitional Cross References:
"Buyer". Section 4-2-103.
"Conform". Section 4-2-106.
"Contract". Section 4-1-201.
"Contract for sale". Section 4-2-106.
"Document of title". Section 4-1-201.
"Goods". Section 4-2-105.
"Party". Section 4-1-201.
"Presumed". Section 4-1-201.
"Reasonable time". Section 4-1-204.
"Rights". Section 4-1-201.
"Seller". Section 4-2-103.
"Send". Section 4-1-201.
"Term". Section 4-1-201.
Structure Colorado Code
Title 4 - Uniform Commercial Code
§ 4-2-501. Insurable Interest in Goods - Manner of Identification of Goods
§ 4-2-502. Buyer's Right to Goods on Seller's Insolvency - Repudiation - Failure to Deliver
§ 4-2-503. Manner of Seller's Tender of Delivery
§ 4-2-505. Seller's Shipment Under Reservation
§ 4-2-506. Rights of Financing Agency
§ 4-2-507. Effect of Seller's Tender - Delivery on Condition
§ 4-2-508. Cure by Seller of Improper Tender or Delivery - Replacement
§ 4-2-509. Risk of Loss in the Absence of Breach
§ 4-2-510. Effect of Breach on Risk of Loss
§ 4-2-512. Payment by Buyer Before Inspection
§ 4-2-513. Buyer's Right to Inspection of Goods
§ 4-2-514. When Documents Deliverable on Acceptance - When on Payment