California Business Practice- April 2014

Wednesday, October 20, 2010

COD delivery - inspection- rejection- revocation of acceptance

Great Class Today:

One of the issues we discussed: The buyer does NOT have the right to inspect goods before payment in the instance of a delivery COD. UCC section 2-513(3)(a); 2-512(1). The Perfect Tender Rule provides that a buyer can reject non-conforming goods while a revocation of acceptance requires a substantial impairment.

Questions Presented: After a buyer pays and takes possession of goods in a COD contract, does the Perfect Tender Rule apply or does the concept of substantial impairment? Why does the UCC make it more difficult to revoke acceptance of goods than initially to have rejected the goods?

Comments welcome!

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