California · Commercial Code

COM §10512: (a) Except as otherwise provided with respect to goods that threaten to decline in value speedily (Section 10511) and subject to any security interest of a lessee (subdivision (e) of Section 10508): (

What this law says, in plain English

This statute addresses the handling of goods at risk of rapid value decline and protects leaseholders' security interests in personal property transactions.

Read the full statutory text

(a) Except as otherwise provided with respect to goods that threaten to decline in value speedily (Section 10511) and subject to any security interest of a lessee (subdivision (e) of Section 10508): (1) The lessee, after rejection of goods in the lessee’s possession, shall hold them with reasonable care at the lessor’s or the supplier’s disposition for a reasonable time after the lessee’s seasonable notification of rejection; (2) If the lessor or the supplier gives no instructions within a reasonable time after notification of rejection, the lessee may store the rejected goods for the lessor’s or the supplier’s account or ship them to the lessor or the supplier or dispose of them for the lessor’s or the supplier’s account with reimbursement in the manner provided in Section 10511; but (3) The lessee has no further obligations with regard to goods rightfully rejected. (b) Action by the lessee pursuant to subdivision (a) is not acceptance or conversion.

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