§490:2-607 - Effect of acceptance; notice of breach; burden of establishing breach after acceptance; notice of claim or litigation to person answerable over.
§490:2-607 Effect of acceptance; notice of
breach; burden of establishing breach after acceptance; notice of claim or
litigation to person answerable over. (1) The buyer must pay at the
contract rate for any goods accepted.
(2) Acceptance of goods by the buyer precludes
rejection of the goods accepted and if made with knowledge of a nonconformity
cannot be revoked because of it unless the acceptance was on the reasonable
assumption that the nonconformity would be seasonably cured but acceptance does
not of itself impair any other remedy provided by this article for
nonconformity.
(3) Where a tender has been accepted:
(a) The buyer must within a reasonable time after he
discovers or should have discovered any breach notify the seller of breach or
be barred from any remedy; and
(b) If the claim is one for infringement or the like
(subsection (3) of section 490:2-312) and the buyer is sued as a result of such
a breach he must so notify the seller within a reasonable time after he
receives notice of the litigation or be barred from any remedy over for
liability established by the litigation.
(4) The burden is on the buyer to establish
any breach with respect to the goods accepted.
(5) Where the buyer is sued for breach of a
warranty or other obligation for which his seller is answerable over:
(a) He may give his seller written notice of the
litigation. If the notice states that the seller may come in and defend and
that if the seller does not do so he will be bound in any action against him by
his buyer by any determination of fact common to the two litigations, then
unless the seller after seasonable receipt of the notice does come in and
defend he is so bound.
(b) If the claim is one for infringement or the like
(subsection (3) of section 490:2-312) the original seller may demand in writing
that his buyer turn over to him control of the litigation including settlement
or else be barred from any remedy over and if he also agrees to bear all
expense and to satisfy any adverse judgment, then unless the buyer after
seasonable receipt of the demand does turn over control the buyer is so barred.
(6) The provisions of subsections (3), (4) and
(5) apply to any obligation of a buyer to hold the seller harmless against
infringement of the like (subsection (3) of section 490:2-312). [L 1965, c 208,
§2-607; HRS §490:2-607]