Also known as: rightful rejections · rightfully reject · rightfully rejected · rightfully rejecting · proper rejection · valid rejection
Written by attorneys · grounded in primary & secondary sources — see below
A buyer's timely refusal to accept tendered goods that fail to conform to the contract in any respect under the perfect tender rule. After such rejection the buyer owes no further obligations concerning the goods and may recover payments plus reasonable expenses of inspection receipt transportation care and custody.
Ronald Reed ordered custom circuit boards from Riverstone Manufacturing for a product launch. The boards arrived with incorrect specifications. Ronald seasonably notified Riverstone of rejection and held the boards for pickup. He incurred no further obligations regarding the goods after the rejection.
Rebecca Ross paid a deposit for industrial pumps from Riverfront Developments. The pumps failed to match contract tolerances. Rebecca rejected the shipment and retained possession. She held a security interest in the pumps for the deposit and inspection costs and could resell them if needed.
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Rosa Ruiz purchased specialized sensors from Redwood Bank for a research project. The sensors arrived damaged and nonconforming. Rosa rejected them after inspection and incurred storage and transportation expenses. She recovered those reasonable costs as incidental damages from the seller.
The buyer has no further obligations with regard to the goods. The buyer must hold them with reasonable care for a reasonable time but need not pay the price or accept substitute performance unless cure occurs within contract time.
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Yes. The buyer obtains a security interest in the goods for any payments made and reasonable expenses of inspection receipt transportation care and custody and may resell the goods in the manner of an aggrieved seller.
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The buyer may recover incidental damages including expenses reasonably incurred in inspection receipt transportation and care and custody of the rejected goods plus any commercially reasonable charges connected with cover.
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…the seller’s breach include expenses reasonably incurred in inspection, receipt, transportation and care and custody of goods rightfully rejected, any commercially reasonable charges, expenses or commissions in connection with effecting cover and any other reasonable expense incident to the delay or other breach. Towing back to…