Page:United States Statutes at Large Volume 77.djvu/691

 77 STAT. ]

PUBLIC LAW 88-243-DEC. 30, 1963

(2) Expenses of inspection must be borne by the buyer but may be recovered from the seller if the goods do not conform and are rejected. (3) Unless otherwise agreed and subject to the provisions of this article on C.I.F. contracts (subsection (3) of section 28:2—321), the buyer is not entitled to inspect the goods before payment of the price when the contract provides (a) for delivery ''C.O.D." or on other like terms; or (b) for payment against documents of title, except where such payment is due only after the goods are to become available for inspection. (-1) A place or method of inspection fixed by the parties is presumed to be exclusive but unless otherwiseexpressl}- agreed it does not postpone identification or shift the place for delivery or for passing the risk of loss. If compliance becomes impossible, inspection shall be as provided in this section unless the place or method fixed was clearly intended as an indispensable condition failure of which avoids the contract. §28:2—514. When documents deliverable on acceptance; when on payment Unless otherwise agreed documents against which a draft is drawn are to be delivered to the drawee on acceptance of the draft if it is payable more than three days after presentment; otherwise, only on payment. §28:2—515. Preserving evidence of goods in dispute I n furtherance of the adjustment of any claim or dispute (a) either party on reasonable notification to the other and for the purpose of ascertaining the facts and preserving evidence has the right to inspect, test and sample the goods including such of them as may be in the possession or control of the other; and (b) the parties may agree to a third party inspection or survey to determine the conformity or condition of the goods and may agree that the findings shall be binding upon them in any subsequent litigation or adjustment.

PART 6—BREACH, REPUDIATION AND EXCUSE § 28: 2—601. Buyer's rights on improper delivery Subject to the provisions of this article on breach in installment contracts (section 28:2—(>12) and unless otherwise agreed under the sections on contractual limitations of remedy (sections 28:2—718 and 28:2—719), if the goods or the tender of delivery fail in any respect to confonn to the contract, the buyer may (a) reject the whole; or (b) accept the whole; or (c) accept any conunercial unit or units and reject the rest. § 28: 2—602. Manner and effect of rightful rejection (1) Rejection of goods nuist be within a reasonable time after their delivery or tender. I t is ineffective unless the buyer seasonably notifies the seller. (2) Subject to the provisions of the two following sections on rejected goods (sections 28:2—603 and 28:2—604), (a) after rejection any exercise of ownership by the buyer with respect to any commercial unit is wrongful as against the seller; and (b) if the buyer has before rejection taken physical possession of goods in which he does not have a security interest under the provisions of this article (subsection (3) of section 28:2—711), he

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