Also known as:reject goods · rejects goods · rejected goods · rejecting goods · buyer rejection · non-acceptance of goods
Written by attorneys · grounded in primary & secondary sources — see below
A buyer's refusal to accept tendered goods that fail to conform to the contract. The refusal is effective only when exercised within a reasonable time after delivery or tender and seasonably communicated to the seller.
Sources & Authorities
How it applies
Common Examples
2
Delayed Notice After Visible Defect
Rising Sun Electronics received a shipment of circuit boards that showed visible warping on arrival. The company unloaded and stored the boards on site but waited a full week before sending any communication to the supplier. Because the delay prevented seasonable notice, the attempted rejection was ineffective and Rising Sun Electronics was treated as having accepted the boards.
Seasonable Notice After Field Test
Raven Logistics ordered custom GPS units for its fleet. The units arrived in sealed crates just before a holiday shutdown, so Raven Logistics stored them unopened. Once staff returned and tested the units, Raven Logistics immediately notified the seller in writing that the units failed to meet contract specifications. The prompt notice after discovery satisfied the timeliness requirement and made the rejection effective.
What must a buyer do to make rejection effective?+
The buyer must reject within a reasonable time after delivery or tender and must seasonably notify the seller. Failure to satisfy either requirement renders the rejection ineffective.
Supporting sources
Does taking physical possession of the goods prevent rejection?+
No. A buyer may take possession to inspect the goods without losing the right to reject, provided rejection occurs within a reasonable time and is seasonably communicated to the seller.
Supporting sources
When does a buyer's delay in inspecting goods make rejection ineffective?+
Delay becomes unreasonable when the buyer retains the goods for an extended period without inspection or notice, especially when the buyer has facilities and staff available to discover nonconformities. Courts measure reasonableness by the nature of the goods, industry practice, and the opportunity for prompt inspection.
Supporting sources
May a buyer reject only part of a nonconforming shipment?+
Yes. When goods fail to conform, the buyer may accept any commercial unit or units and reject the rest, provided each unit can stand alone for installation or use.
Supporting sources
438 F.2d 500 (8th Cir. 1971)Contracts
…here, since that section applies to the buyer's remedies upon failure of the seller to deliver goods or upon the rightful rejection of goods known to be defective. Hence the question here is whether the plaintiff's damage could otherwise have been reasonably prevented. The applicable doctrine is stated by Professor…