30-2-607. Effect of acceptance -- notice of breach -- burden of establishing breach after acceptance -- notice of claim or litigation to person answerable over. - Montana Statutes

     30-2-607. Effect of acceptance -- notice of breach -- burden of establishing breach after acceptance -- notice of claim or litigation to person answerable over. (1) The buyer must pay at the contract rate for any goods accepted.
     (2) Acceptance of goods by the buyer precludes rejection of the goods accepted and if made with knowledge of a nonconformity cannot be revoked because of it unless the acceptance was on the reasonable assumption that the nonconformity would be seasonably cured but acceptance does not of itself impair any other remedy provided by this chapter for nonconformity.
     (3) Where a tender has been accepted:
     (a) the buyer must within a reasonable time after the buyer discovers or should have discovered any breach notify the seller of breach or be barred from any remedy; and
     (b) if the claim is one for infringement or the like (subsection (3) of 30-2-312) and the buyer is sued as a result of such a breach the buyer must so notify the seller within a reasonable time after the buyer receives notice of the litigation or be barred from any remedy over for liability established by the litigation.
     (4) The burden is on the buyer to establish any breach with respect to the goods accepted.
     (5) Where the buyer is sued for breach of a warranty or other obligation for which another party is answerable over:
     (a) the buyer may give the other party written notice of the litigation. If the notice states that the seller may come in and defend and that if the seller does not do so the other party will be bound in any action against the other party by the buyer by any determination of fact common to the two litigations, then unless the other party after seasonable receipt of the notice does come in and defend the other party is so bound.
     (b) if the claim is one for infringement or the like (subsection (3) of 30-2-312) the original seller may demand in writing that its buyer turn over to it control of the litigation including settlement or else be barred from any remedy over and if it also agrees to bear all expense and to satisfy any adverse judgment, then unless the buyer after seasonable receipt of the demand does turn over control the buyer is so barred.
     (6) The provisions of subsections (3), (4) and (5) apply to any obligation of a buyer to hold the seller harmless against infringement or the like (subsection (3) of 30-2-312).

     History: En. Sec. 2-607, Ch. 264, L. 1963; R.C.M. 1947, 87A-2-607; amd. Sec. 865, Ch. 56, L. 2009.