A . Distinguish between a rejection of goods and a revocation of acceptance of goods. b. What is the effect of a rejection? What is the effect of a revocation? c. Does the buyer have any obligations to the seller once she has rejected the goods?


a . Rejection is a manifestation of an unwillingness to accept the goods and to become their owner. Revocation of acceptance is the rescission of one's acceptance of goods based upon the nonconformity of the goods, which substantially impairs their value. The goods are never accepted when they are rejected. Rejection may be rightful or wrongful. If it is wrongful, it is a breach of the contract.
b. If the rejection is wrongful, it is a breach of the contract. However, the buyer's rejection of nonconforming goods is rightful under the perfect tender rule. After the buyer rejects the goods, the Code allows the buyer to exercise no ownership of them. The buyer must hold them with reasonable care for a time sufficient to permit the seller to remove them. The buyer who is not a merchant is under no further obligation with regard to goods rightfully rejected. Upon revocation of acceptance, the buyer is in the same position with respect to the goods and has the same rights and duties with regard to them as if he had rejected them.
c. A nonmerchant buyer has no obligation to the seller other than notification to him of the rejection and holding the goods with reasonable care for a time sufficient to permit the seller to remove them. However, a merchant buyer who has rightfully rejected the goods is obligated to follow reasonable instructions from the seller with respect to the disposition of the goods in his possession or control, when the seller has no agent or business at the place of rejection. If the merchant buyer receives no instructions from the seller within a reasonable time after notice of the rejection, and the rejected goods are perishable or threaten to decline in value speedily, he is obligated to make reasonable efforts to sell them for the seller's account.

Business

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