§ 554.13516

554.13516 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 revokedbecause of it. In any other case, if made with knowledge of a nonconformity, acceptancecannot be revoked because of it unless the acceptance was on the reasonable assumptionthat the nonconformity would be seasonably cured. Acceptance does not of itself impair anyother remedy provided by this Article 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 anyremedy against the party not notified; b. except in the case of a consumer lease, within a reasonable time after the lessee receives notice of

he lessor and the supplier, if any, or be barred from anyremedy 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 554.13211) the lessee shall notify thelessor 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 personnotified does not do so that person will be bound in any action against that person by the lesseeby any determination of fact common to the two litigations, then unless the person notifiedafter 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

nd 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 (section554.13211) or else be barred from any remedy over. If the demand states that the lessor orthe supplier agrees to bear all expense and to satisfy any adverse judgment, then unless thelessee after seasonable receipt of the demand does turn over control the lessee is so barred. 5. Subsections 3 and 4 apply to any obligation of a lessee to hold the lessor or the supplier harmless against infringement or the like (section 554.13211). 94 Acts, ch 1052, §68Referred to in §554.13519 Sat Dec 23 11:03:35 2023 Iowa Code 2024, Section 554.13516 (25, 0)