Also known as: revoke acceptance · revoked acceptance · revoking acceptance · revocation of acceptance
Written by attorneys · grounded in primary & secondary sources — see below
A buyer's remedy allowing revocation of acceptance of goods previously accepted when their nonconformity substantially impairs their value to the buyer. The buyer must have accepted without discovering the nonconformity or on the reasonable assumption that it would be seasonably cured. Revocation must occur within a reasonable time after discovery and before substantial change in the goods not caused by the nonconformity, followed by seasonable notice to the seller.
Roger Ramirez purchased specialized machinery from Reliance Insurance's equipment division. After acceptance, Roger discovered a latent defect that substantially impaired the machinery's value and properly revoked acceptance. When Reliance could not resell the identified goods at a reasonable price, it recovered damages for non-acceptance under the applicable rule.
Ruby Rivera bought a fleet of delivery vans from Redline Automotive. The vans arrived with defective braking systems that substantially impaired their value. Ruby justifiably revoked acceptance, canceled the contract, and recovered the price paid plus cover damages for substitute vehicles.
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Renee Rogers accepted commercial ovens from Riverstone Manufacturing that failed to heat evenly. After justifiable revocation of acceptance, Renee retained possession of the ovens and exercised a security interest to recover payments made plus inspection and storage expenses by reselling them in a commercially reasonable manner.
Roland Rhodes accepted a shipment of industrial parts from Rhapsody Entertainment that arrived nonconforming. After revoking acceptance at the place of arrival, Roland measured damages using the market price at that location rather than the original place of tender.
Rachel Ramirez contracted for future delivery of grain from a supplier who repudiated before tender. After Rachel revoked acceptance of an earlier partial shipment, she elected between cover and market-price damages under the governing provisions.
The buyer must prove that the nonconformity substantially impairs the value of the goods to the buyer. Acceptance must have occurred without discovery of the nonconformity or on the reasonable assumption that it would be seasonably cured. Revocation must occur within a reasonable time after discovery and before any substantial change in the goods not caused by the nonconformity, with seasonable notice to the seller.
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No. Acceptance with knowledge bars revocation unless the buyer reasonably assumed the nonconformity would be seasonably cured and that assumption proves unfounded. Extended use after the promised cure period expires can defeat the right to revoke.
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The buyer may cancel the contract, recover the price paid, cover or recover market-price damages, and exercise a security interest in the goods for payments made and expenses incurred. The buyer holds the same rights and duties as if the goods had been rejected.
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Market price is determined as of the place of arrival when revocation follows delivery. The buyer may also recover incidental and consequential damages in addition to the difference between contract price and cover or market price.
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…concedes that if “rescission” was an inappropriate remedy under the UCC, then the trial court should have permitted him to revoke acceptance under SDCL 57A-2-605. Revocation is a permissible substitute for rescission under the UCC in some jurisdictions. Henderson v. Chrysler Corp. , 191 Mich.App. 337, 477 N.W.2d 505, appeal…