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Terms Used In Maryland Code, COMMERCIAL LAW 2A-512

  • Goods: means all things that are movable at the time of identification to the lease contract, or are fixtures (§ 2A-309), but the term does not include money, documents, instruments, accounts, chattel paper, general intangibles, or minerals or the like, including oil and gas, before extraction. See
  • Lessee: means a person who acquires the right to possession and use of goods under a lease. See
  • Lessor: means a person who transfers the right to possession and use of goods under a lease. See
  • Supplier: means a person from whom a lessor buys or leases goods to be leased under a finance lease. See
(1) Except as otherwise provided with respect to goods that threaten to decline in value speedily (§ 2A-511):

(a) The lessee, after rejection of goods in the lessee’s possession, shall hold them with reasonable care at the lessor‘s or supplier‘s disposition for a reasonable time after the lessee’s seasonable notification of rejection;

(b) 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 § 2A-511; but

(c) The lessee has no further obligations with regard to goods rightfully rejected.

(2) Action by the lessee pursuant to subsection (1) is not acceptance or conversion.