§490:2A-516  Effect of acceptance of goods;
notice of default; burden of establishing default after acceptance; notice of
claim or litigation to person answerable over.  (a)  A lessee must pay rent
for any goods accepted in accordance with the lease contract, with due
allowance for goods rightfully rejected or not delivered.



(b)  A lessee's acceptance of goods precludes
rejection of the goods accepted.  In the case of a finance lease, if made with
knowledge of a nonconformity, acceptance cannot be revoked because of it.  In
any other case, if made with knowledge of a nonconformity, acceptance cannot be
revoked because of it unless the acceptance was on the reasonable assumption
that the nonconformity would be seasonably cured.  Acceptance does not of itself
impair any other remedy provided by this article or the lease agreement for
nonconformity.



(c)  If a tender has been accepted:



(1)  Within a reasonable time after the lessee
discovers or should have discovered any default, the lessee shall notify the lessor
and the supplier, if any, or be barred from any remedy against the party not
notified;



(2)  Except in the case of a consumer lease, within a
reasonable time after the lessee receives notice of litigation for infringement
or the like (section 490:2A-211) the lessee shall notify the lessor or be
barred from any remedy over for liability established by the litigation; and



(3)  The burden is on the lessee to establish any
default.



(d)  If a lessee is sued for breach of a
warranty or other obligation for which a lessor or a supplier is answerable
over the following apply:



(1)  The lessee may give the lessor or the supplier,
or both, written notice of the litigation.  If the notice states that the
person notified may come in and defend and that if the person notified does not
do so that person will be bound in any action against that person by the lessee
by any determination of fact common to the two litigations, then unless the
person notified after seasonable receipt of the notice does come in and defend that
person is so bound.



(2)  The lessor or the supplier may demand in writing
that the lessee turn over control of the litigation including settlement if the
claim is one for infringement or the like (section 490:2A-211) or else be
barred from any remedy over.  If the demand states that the lessor or the
supplier agrees to bear all expense and to satisfy any adverse judgment, then
unless the lessee after seasonable receipt of the demand does turn over control
the lessee is so barred.



(e)  Subsections (c) and (d) apply to any
obligation of a lessee to hold the lessor or the supplier harmless against
infringement or the like (section 490:2A-211). [L 1991, c 40, pt of §1]