(1) The benefit of a supplier’s promises to the lessor under the supply contract and of all warranties, whether express or implied, including those of any third party provided in connection with or as part of the supply contract, extends to the lessee to the extent of the lessee’s leasehold interest under a finance lease related to the supply contract, but is subject to the terms of the warranty and of the supply contract and all defenses or claims arising therefrom.
(2) The extension of the benefit of a supplier’s promises and of warranties to the lessee under subsection (1) of this section does not:
(a) Modify the rights and obligations of the parties to the supply contract, whether arising therefrom or otherwise; or
(b) Impose any duty or liability under the supply contract on the lessee.
(3) Any modification or rescission of the supply contract by the supplier and the lessor is effective between the supplier and the lessee unless, before the modification or rescission, the supplier has received notice that the lessee has entered into a finance lease related to the supply contract. If the modification or rescission is effective between the supplier and the lessee, the lessor is deemed to have assumed, in addition to the obligations of the lessor to the lessee under the lease contract, promises of the supplier to the lessor and warranties that were so modified or rescinded as they existed and were available to the lessee before modification or rescission.
(4) In addition to the extension of the benefit of the supplier’s promises and of warranties to the lessee under subsection (1) of this section, the lessee retains all rights that the lessee may have against the supplier that arise from an agreement between the lessee and the supplier or under other law. [1989 c.676 §18; 1993 c.646 §3]
Section: Previous 72A.2020 72A.2030 72A.2040 72A.2050 72A.2060 72A.2070 72A.2080 72A.2090 72A.2100 72A.2110 72A.2120 72A.2130 72A.2140 72A.2150 72A.2160 NextLast modified: August 7, 2008