<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 57A-2-602 - Manner and effect of rightful rejection. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073241Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2073241SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073241CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073241Normal-000000 { margin-top: 0; margin-bottom: 0; margin-left: 4.50in; text-indent: -4.00in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-right: 0; } span.s2073241DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073241Normal-000001 { margin-top: 0; margin-bottom: 0; margin-left: 0.70in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-right: 0; } p.s2073241Normal-000002 { margin-top: 0; margin-bottom: 0; margin-left: 1.14in; text-indent: -0.44in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-right: 0; } span.s2073241000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073241SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073241SCL-000004 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } body { text-decoration-skip-ink: none; } </style></head><body><div><p dir="ltr" class="s2073241Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-2-602"><span class="s2073241SENU">57A-2-602</span></a><span xml:space="preserve" class="s2073241SENU">. </span><span class="s2073241CL">Manner and effect of rightful rejection.</span></p><p dir="ltr" class="s2073241Normal-000000"><span class="s2073241DefaultParagraphFont">(1)    Rejection of goods must be within a reasonable time after their delivery or tender. It is ineffective unless the buyer seasonably notifies the seller.</span></p><p dir="ltr" class="s2073241Normal-000001"><span xml:space="preserve" class="s2073241DefaultParagraphFont">(2)    Subject to the provisions of the two following sections on rejected goods (§§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-2-603"><span class="s2073241DefaultParagraphFont">57A-2-603</span></a><span xml:space="preserve" class="s2073241DefaultParagraphFont"> and </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-2-604"><span class="s2073241DefaultParagraphFont">57A-2-604</span></a><span class="s2073241DefaultParagraphFont">)</span></p><p dir="ltr" class="s2073241Normal-000002"><span class="s2073241DefaultParagraphFont">(a)    After rejection any exercise of ownership by the buyer with respect to any commercial unit is wrongful as against the seller; and</span></p><p dir="ltr" class="s2073241Normal-000002"><span xml:space="preserve" class="s2073241DefaultParagraphFont">(b)    If the buyer has before rejection taken physical possession of goods in which he does not have a security interest under the provisions of this chapter (subsection (3) of § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-2-711"><span class="s2073241DefaultParagraphFont">57A-2-711</span></a><span class="s2073241DefaultParagraphFont">), he is under a duty after rejection to hold them with reasonable care at the seller's disposition for a time sufficient to permit the seller to remove them; but</span></p><p dir="ltr" class="s2073241Normal-000002"><span class="s2073241DefaultParagraphFont">(c)    The buyer has no further obligations with regard to goods rightfully rejected.</span></p><p dir="ltr" class="s2073241Normal-000001"><span xml:space="preserve" class="s2073241DefaultParagraphFont">(3)    The seller's rights with respect to goods wrongfully rejected are governed by the provisions of this chapter on seller's remedies in general (§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-2-703"><span class="s2073241DefaultParagraphFont">57A-2-703</span></a><span class="s2073241DefaultParagraphFont">).</span></p><p dir="ltr" class="s2073241Normal"><span xml:space="preserve" class="s2073241000003"> </span></p><p dir="ltr" class="s2073241Normal"><span class="s2073241SCL">Source:</span><span xml:space="preserve" class="s2073241SCL-000004"> SL 1966, ch 150, § 2-602; SDCL, §§ 57-7-2 to 57-7-4.</span></p></div></body></html>