Michigan Compiled Laws
174-1962-2A-5 - Part 5 Default (440.2951...440.2982)
Section 440.2964 - Rejection of Goods; Failure of Lessee to State Particular Defect or Reserve Rights When Paying Consideration Against Documents; Effect.

Sec. 2A514.
(1) In rejecting goods, a lessee's failure to state a particular defect that is ascertainable by reasonable inspection precludes the lessee from relying on the defect to justify rejection or to establish default if either of the following applies:
(a) If, stated seasonably, the lessor or the supplier could have cured the defect.
(b) Between merchants, if the lessor or the supplier after rejection has made a request in writing for a full and final written statement of all defects on which the lessee proposes to rely.
(2) A lessee's failure to reserve rights when paying rent or other consideration against documents precludes recovery of the payment for defects apparent in the documents.
History: Add. 1992, Act 101, Eff. Sept. 30, 1992 ;-- Am. 2012, Act 87, Eff. July 1, 2013

Structure Michigan Compiled Laws

Michigan Compiled Laws

Chapter 440 - Uniform Commercial Code

Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102)

Article 2A - Leases (440.2801...440.2982)

174-1962-2A-5 - Part 5 Default (440.2951...440.2982)

Section 440.2951 - Default; Rights and Remedies; Self-Help; Enforcement Covering Real Property and Goods.

Section 440.2952 - Notice of Default or Enforcement.

Section 440.2953 - Default; Rights and Remedies Provided in Lease Agreement; Optional Remedies; Liquidation, Limitation, Alteration or Exclusion of Consequential Damages; Collateral or Ancillary Obligations and Promises.

Section 440.2954 - Liquidation of Damages; Reasonableness; Restitution; Setoff.

Section 440.2955 - Cancellation or Termination of Lease Contract; Discharge of Executory Obligations; Material Misrepresentation or Fraud; Rescission, Rejection, or Return of Goods as Bar to Rights or Remedies.

Section 440.2956 - Default; Commencement and Accrual of Action; Effect of Termination; Applicability of Section to Tolling of Statute of Limitations or Causes of Action Accrued Before Effective Date of Article.

Section 440.2957 - Damages Based on Market Rent.

Section 440.2958 - Default by Lessor; Rights and Remedies; Breach of Warranty; Security Interest for Rent, Security, and Expenses; Deduction of Damages From Rent Due.

Section 440.2959 - Failure of Goods or Tender or Delivery to Conform to Lease Contract; Rights of Lessee; Effectiveness of Rejection of Goods.

Section 440.2960 - Installment Lease Contract; Rejecting Nonconforming Delivery; Conditions Requiring Acceptance; Reinstatement of Lease Contract.

Section 440.2961 - Rejection of Goods in Merchant Lessee's Possession or Control; Duties of Merchant Lessee; Right to Reimbursement; Good Faith Conduct; Purchaser in Good Faith.

Section 440.2962 - Rejection of Goods in Lessee's Possession; Rights and Obligations of Lessee.

Section 440.2963 - Rejection of Goods Before Expiration of Time for Performance; Rights of Lessor or Supplier.

Section 440.2964 - Rejection of Goods; Failure of Lessee to State Particular Defect or Reserve Rights When Paying Consideration Against Documents; Effect.

Section 440.2965 - Acceptance of Goods; Opportunity to Inspect; Conduct; Accepting Part of Unit.

Section 440.2966 - Acceptance of Goods; Rent; Revocation Prohibited; Exception; Acceptance of Tender; Effect of Suit Against Lessee for Breach of Warranty or Other Obligation; Infringement.

Section 440.2967 - Revoking Acceptance of Nonconforming Lot or Commercial Unit; Conditions; Notification; Rights and Duties of Lessee.

Section 440.2968 - Default by Lessor; Cover; Damages.

Section 440.2969 - Nondelivery or Repudiation by Lessor; Rejection or Revocation of Acceptance by Lessee; Damages; Measure of Damages for Market Rent, Nonconforming Tender or Delivery, or Breach of Warranty.

Section 440.2970 - Default by Lessor; Incidental and Consequential Damages.

Section 440.2971 - Specific Performance.

Section 440.2972 - Insolvency of Lessor; Recovery of Conforming Goods After Receipt of First Installment of Rent and Security.

Section 440.2973 - Wrongful Rejection or Revocation; Failure to Make Payment; Repudiation; Default; Rights of Lessor; Damages; Cancellation of Lease.

Section 440.2974 - Additional Rights of Lessor Aggrieved Under MCL 440.2973(1).

Section 440.2975 - Insolvency of Lessee; Refusal to Deliver Goods; Possession, Availability, or Disposition of Goods; Proceeding Without Judicial Process.

Section 440.2976 - Insolvency of Lessee; Stopping Delivery of Goods in Possession of Bailee; Conditions; Notification; Liability for Charges or Damages; Obligation of Carrier.

Section 440.2977 - Default; Disposition of Goods; Damages Based on New Lease Agreement; Rights of Subsequent Good Faith Buyer or Lessee; Accounting for Profit.

Section 440.2978 - Retention or Disposition of Goods by Lessor; Damages.

Section 440.2979 - Default by Lessee; Damages; Holding Identified Goods for Remaining Lease Term; Disposition of Goods by Lessor; Use and Possession of Goods by Lessee; Rent.

Section 440.2980 - Incidental Damages.

Section 440.2981 - Third Party Causing Injury.

Section 440.2982 - Additional Damages.