Idaho State Statutes - Idaho Attorney Directory

28-12-516 - EFFECT OF ACCEPTANCE OF GOODS -- NOTICE OF DEFAULT -- BURDEN OF ESTABLISHING DEFAULT AFTER ACCEPTANCE -- NOTICE OF CLAIM OR LITIGATION TO PERSON ANSWERABLE OVER

EFFECT OF ACCEPTANCE OF GOODS -- NOTICE OF DEFAULT -- BURDEN
OF ESTABLISHING DEFAULT AFTER ACCEPTANCE -- NOTICE OF CLAIM OR LITIGATION TO
PERSON ANSWERABLE OVER. (1) 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.
(2) 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 chapter or the lease agreement for
nonconformity.
(3) If a tender has been accepted:
(a) 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;
(b) 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 28-12-211) the lessee shall notify the lessor or be barred
from any remedy over for liability established by the litigation; and
(c) The burden is on the lessee to establish any default.
(4) 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:
(a) 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 (2) litigations, then unless
the person notified after seasonable receipt of the notice does come in
and defend that person is so bound.
(b) 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 28-12-211) 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.
(5) The provisions of subsections (3) and (4) of this section apply to
any obligation of a lessee to hold the lessor or the supplier harmless against
infringement or the like (section 28-12-211).

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