                                 CODE OF VIRGINIA

EFFECT OF ACCEPTANCE OF GOODS; NOTICE OF DEFAULT; BURDEN OF ESTABLISHING DEFAULT
AFTER ACCEPTANCE; NOTICE OF CLAIM OR LITIGATION TO PERSON ANSWERABLE (§
8.2A-516)

1. A lessee shall 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&#8217;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 title 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 (&#xA7;
   8.2A-211) the lessee shall notify the lessor or be barred from any remedy 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 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 lessor or the supplier 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 (&#xA7; 8.2A-211) or else be barred from any remedy.
   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
(&#xA7; 8.2A-211).

HISTORY: 1991, c. 536.