Ohio § 1310.57 Merchant lessee's duties as to rightfully rejected goods - UCC 2A-511

Ohio Statutes

§ 1310.57 — Merchant lessee's duties as to rightfully rejected goods - UCC 2A-511

Ohio § 1310.57

Title 13Commercial Transactions

Ch. 1310Leases

This text of Ohio § 1310.57 (Merchant lessee's duties as to rightfully rejected goods - UCC 2A-511) is published on Counsel Stack Legal Research, covering Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ohio Rev. Code Ann. § 1310.57 (2026).

Text

(A)Subject to any security interest of a lessee as provided in division (E) of section1310.54of the Revised Code, if a lessor or a supplier has no agent or place of business at the market of rejection, a merchant lessee, after rejection of goods in his possession or control, shall follow any reasonable instructions received from the lessor or the supplier with respect to the goods. In the absence of those instructions, a merchant lessee shall make reasonable efforts to sell, lease, or otherwise dispose of the goods for the lessor's account if they threaten to decline in value speedily. Instructions are not reasonable if on demand indemnity for expenses is not forthcoming.

(B)If a merchant lessee, as provided in division (A) of this section, or any other lessee, as provided in section131

Free access — add to your briefcase to read the full text and ask questions with AI

(A) Subject to any security interest of a lessee as provided in division (E) of section1310.54of the Revised Code, if a lessor or a supplier has no agent or place of business at the market of rejection, a merchant lessee, after rejection of goods in his possession or control, shall follow any reasonable instructions received from the lessor or the supplier with respect to the goods. In the absence of those instructions, a merchant lessee shall make reasonable efforts to sell, lease, or otherwise dispose of the goods for the lessor's account if they threaten to decline in value speedily. Instructions are not reasonable if on demand indemnity for expenses is not forthcoming.

(B) If a merchant lessee, as provided in division (A) of this section, or any other lessee, as provided in section1310.58of the Revised Code, disposes of goods, he is entitled to reimbursement either from the lessor or the supplier or out of the proceeds for the reasonable expenses of caring for and disposing of the goods and, if the expenses include no disposition commission, to the commission that is usual in the trade or, if there is none, to a reasonable sum not exceeding ten per cent of the gross proceeds.

(C) In complying with this section or section1310.58of the Revised Code, the lessee is held only to good faith. Good faith conduct is neither acceptance or conversion nor the basis of an action for damages.

(D) A purchaser who purchases in good faith from a lessee pursuant to this section or section1310.58of the Revised Code takes the goods free of any rights of the lessor and the supplier even though the lessee fails to comply with one or more of the requirements of sections1310.01to1310.78of the Revised Code.