Electing Revocation of Acceptance as a Remedy: Pitfalls for Buyers that Preclude Return of Defective Goods

28-6 Commercial Damages Reporter 1, 2013

11 Pages Posted: 28 Sep 2013

Date Written: September 26, 2013

Abstract

While the flexibility of the remedy arguably undermines uniformity, which ultimately underscores the policy of the Code, it also provides courts and parties greater means to resolve any dispute over the defective goods without recourse to litigation. This Article argues that while the flexible guideposts for exercise of the revocation remedy might present pitfalls for aggrieved buyers, in most cases the proper course of action to preserve and pursue revocation is not necessarily unobvious to an aggrieved buyer. After all, for instance, a buyer should not expect that it can wait indefinitely to return defective goods or that be surprised it needs to give the seller notice of the return. Buyers should guard against any mistaken overreliance on the buyers’ right to return defective goods under section 2-608 by believing that it is a more expansive right than the letter of the Code permits. That is, an aggrieved byer is simply not always entitled to return defective goods. This Article concludes that in most cases, an assessment by the buyer of the availability of the revocation remedy can be made through evaluation of three broad categories that frequently require evaluation: (1) the substantial character of the defects in the goods, (2) the time elapsed after purchase or the end of seller attempts to cure the defects, and (3) the timing and character of notice given to the seller regarding the defects. Each of these categories represents a potential pitfall to a buyer with non-conforming goods that seeks to revoke acceptance. While such evaluations must necessarily take place in the particular factual context of the sales transaction, it is nevertheless helpful for the buyers to take ownership of the management of the transaction, even though the defects typically were not caused by the buyer. A buyer who does not actively manage a transaction gone awry may find itself with defective goods and no option to return them.

Keywords: remedy, revocation, sales, ucc, commercial, damages, cure, 2-608, buyer, seller, defects, substantial, time, notice, context, transaction

JEL Classification: K1, K10, K12, K19, K20

Suggested Citation

Martin, Jennifer S., Electing Revocation of Acceptance as a Remedy: Pitfalls for Buyers that Preclude Return of Defective Goods (September 26, 2013). 28-6 Commercial Damages Reporter 1, 2013 , Available at SSRN: https://ssrn.com/abstract=2331710

Jennifer S. Martin (Contact Author)

Albany Law School ( email )

80 New Scotland Avenue
Albany, NY 12208
United States

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