Also known as: revoke acceptance · revocation of acceptance · revoking acceptance · revoked acceptance · UCC 2-608
Written by attorneys · grounded in primary & secondary sources — see below
A buyer's remedy under sales law that permits revocation of acceptance of goods whose nonconformity substantially impairs their value to the buyer when acceptance occurred on the reasonable assumption that the nonconformity would be cured or without discovery of the nonconformity because of its difficulty or the seller's assurances.
Radiant Technologies accepted specialized machinery from Rhapsody Entertainment after the seller promised a firmware fix within ten days. When the fix never arrived Radiant revoked acceptance six weeks later and refused payment. A court held the revocation wrongful because the delay did not yet render cure unreasonable. Rhapsody therefore recovered damages for non-acceptance even though it could not recover the price.
Riverstone Manufacturing accepted a shipment of components from Riverside Healthcare after the seller assured prompt replacement of defective units. When replacements never arrived Riverstone revoked acceptance and retained the goods. Because the revocation was justifiable Riverstone held a security interest in the components for payments made and inspection expenses and could resell them to recover those amounts.
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Rina Rahman accepted produce delivered to her warehouse in Chicago from Roberto Reyes after the seller promised conforming quality. Upon discovering rot after arrival Rina revoked acceptance. Damages were measured by the difference between contract price and market price at the Chicago place of arrival rather than the original tender location.
The buyer must prove that the nonconformity substantially impairs the value of the goods to the buyer and that acceptance occurred either on the reasonable assumption that the seller would seasonably cure or without discovery of the nonconformity because of its difficulty or the seller's assurances.
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Continued use does not automatically bar revocation when the buyer accepted on the assumption of cure and the seller fails to cure seasonably. Use while reasonably awaiting cure does not constitute waiver provided notice is given within a reasonable time after the ground for revocation becomes clear.
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Revocation must occur within a reasonable time after the buyer discovers or should have discovered the ground for it and before any substantial change in the condition of the goods not caused by their own defects. Notice to the seller is also required.
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Upon effective revocation the buyer has the same rights and duties as if the goods had been rejected including the right to recover payments made and to hold a security interest in the goods for expenses.
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…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…