A. In rejecting goods, a lessee‘s failure to state a particular defect that is ascertainable by reasonable inspection precludes the lessee from relying on the defect to justify rejection or to establish default:

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Terms Used In Arizona Laws 47-2A514

  • Goods: means all things that are movable at the time of identification to the lease contract, or are fixtures (section 47-2A309), 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 Arizona Laws 47-2A103
  • Lessee: means a person who acquires the right to possession and use of goods under a lease. See Arizona Laws 47-2A103
  • Lessor: means a person who transfers the right to possession and use of goods under a lease. See Arizona Laws 47-2A103
  • Supplier: means a person from whom a lessor buys or leases goods to be leased under a finance lease. See Arizona Laws 47-2A103
  • Writing: includes printing. See Arizona Laws 1-215

1. If, stated seasonably, the lessor or the supplier could have cured it (section 47-2A513); or

2. Between merchants if the lessor or the supplier after rejection has made a request in writing for a full and final written statement of all defects on which the lessee proposes to rely.

B. A lessee’s failure to reserve rights when paying rent or other consideration against documents precludes recovery of the payment for defects apparent in the documents.