(a) Except as otherwise provided with respect to goods that threaten to decline in value speedily (§ 28:2A-511) and subject to any security interest of a lessee (§ 28:2A-508(e)):

(1) The lessee, after rejection of goods in the lessee’s possession, shall hold them with reasonable care at the lessor’s or the supplier’s disposition for a reasonable time after the lessee’s seasonable notification of rejection;

(2) 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 § 28:2A-511; but

(3) The lessee has no further obligations with regard to goods rightfully rejected.

(b) Action by the lessee pursuant to subsection (a) of this section is not acceptance or conversion.

(July 22, 1992, D.C. Law 9-128, § 2(b), 39 DCR 3830.)

1981 Ed., § 28:2A-512.

This section is referenced in § 28:2A-511.

Uniform Statutory Source:Sections 2-602(2)(b) and (c) and 2-604.

Changes: Substantially rewritten.

Purposes: The introduction to subsection (1) references goods that threaten to decline in value speedily and not perishables, the reference in Section 2-604, the statutory analogue. This is a change in style, not substance, as the first phrase includes the second. Subparagraphs (a) and (c) are revised versions of the provisions of Section 2-602(2)(b) and (c). Subparagraph (a) states the rule with respect to the lessee’s treatment of goods in its possession following rejection; subparagraph (b) states the rule regarding such goods if the lessor or supplier then fails to give instructions to the lessee. If the lessee performs in a fashion consistent with subparagraphs (a) and (b), subparagraph (c) exonerates the lessee.

Cross References:Sections 2-602(2)(b), 2-602(2)(c) and 2-604.

Definitional Cross References: “Action”. Section 1-201(1).

“Goods”. Section 2A-103(1)(h).

“Lessee”. Section 2A-103(1)(n).

“Lessor”. Section 2A-103(1)(p).

“Notification”. Section 1-201(26).

“Reasonable time”. Section 1-204(1) and (2).

“Seasonably”. Section 1-204(3).

“Security interest”. Section 1-201(37).

“Supplier”. Section 2A-103(1)(x).

“Value”. Section 1-201(44).