Also known as: revocations of acceptance · revoke acceptance · revokes acceptance · revoked acceptance · revoking acceptance · UCC 2-608
Written by attorneys · grounded in primary & secondary sources — see below
A buyer's remedy allowing revocation of an earlier acceptance of goods whose nonconformity substantially impairs their value to the buyer. The buyer must have accepted on the reasonable assumption that the nonconformity would be cured or because of difficulty of discovery or seller assurances. Revocation must occur within a reasonable time after discovery and before any substantial change in the goods not caused by the defect itself, and notice must be given to the seller.
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Ravi Reddy ordered custom machinery from Regal Apparel and accepted the shipment after assurances of prompt fixes for calibration issues. When the fixes never arrived, Ravi attempted revocation but the court found it wrongful. Regal Apparel could not resell the identified goods at a reasonable price and sued for the price, but the court awarded only damages for non-acceptance instead.
Renee Rogers bought commercial ovens from Riverside Healthcare that failed to heat evenly. She had accepted after promises of a software update that never came. Renee revoked acceptance, canceled the contract, and recovered the price paid plus cover damages for substitute ovens.
Ronald Reed purchased GPS units from Raven Logistics that lacked promised real-time features. After revocation of acceptance, Ronald retained the units in his possession and resold several to recover payments made and inspection costs under his security interest.
Rosalind Reed accepted a shipment of designer coats from Redwood Bank that contained latent zipper defects. After revoking acceptance upon customer returns, she recovered damages measured by the market price at the place of arrival rather than the original tender location.
Ryan Roberts contracted to buy corn from a supplier who repudiated before delivery. Ryan waited a commercially reasonable time for performance, then covered with substitute goods and pursued damages when the supplier failed to deliver conforming seed.
The buyer must show that the nonconformity substantially impairs the value of the goods to the buyer. Acceptance must have occurred on the reasonable assumption of cure that did not happen or because of difficulty of discovery or seller assurances. Revocation must be timely, before substantial change not caused by the defect, and notice must be given.
Continued use after a valid revocation notice is risky and may constitute reacceptance if unreasonable. Courts examine whether the use was commercially reasonable under the circumstances, such as when the buyer must operate a business while awaiting cure or resolution.
…concedes that if “rescission” was an inappropriate remedy under the UCC, then the trial court should have permitted him to revoke acceptance under SDCL 57A-2-605. Revocation is a permissible substitute for rescission under the UCC in some jurisdictions. Henderson v. Chrysler Corp. , 191 Mich.App. 337, 477 N.W.2d 505, appeal…
…it: “(1) on the reasonable assumption that its non-conformity would be cured and it has not been seasonably cured; “(B)
…portion of 2-711: "(1) Where the seller fails to make delivery or repudiates or the buyer rightfully rejects or justifiably revokes acceptance
…Defendants rejected or revoked
The buyer obtains the same rights and duties as if the goods had been rightfully rejected. This includes cancellation, recovery of the price paid, cover damages, or damages for non-delivery, plus a security interest in the goods for payments and expenses.
Market price for damages is determined as of the place of arrival when revocation occurs after the goods have reached the buyer. The buyer may also recover incidental and consequential damages in addition to the contract-market differential or cover damages.