§12A-2A-516.

§12A-2A-516.
   
             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 revoked because of it. In any
   other case, if made with knowledge of a nonconformity, acceptance
   cannot be revoked because of it unless the acceptance was on the
   reasonable assumption that the nonconformity would be seasonably
   cured. Acceptance does not of itself impair any other 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 any remedy 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 2A-211 of this title) the lessee shall notify the lessor
   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 person notified does
   not do so that person will be bound in any action against that person
   by the lessee by any determination of fact common to the two
   litigations, then unless the person notified after 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 the like (Section 2A-211 of this title) or
   else be barred from any remedy over. If the demand states that the
   lessor or the supplier agrees to bear all expense and to satisfy any
   adverse judgment, then unless the lessee after seasonable receipt of
   the demand does turn over control the lessee is so barred.
   
   (5) Subsections (3) and (4) of this section apply to any obligation of
   a lessee to hold the lessor or the supplier harmless against
   infringement or the like (Section 2A-211 of this title).