ORS 72.6070¹
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 pursuant to ORS 72.3120 (Warranty of title and against infringement) (3) 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 the seller is answerable over:

(a) The buyer may give the seller 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 seller will be bound in any action against the seller by the buyer by any determination of fact common to the two litigations, then unless the seller after seasonable receipt of the notice does come in and defend the seller is so bound.

(b) If the claim is one for infringement or the like pursuant to ORS 72.3120 (Warranty of title and against infringement) (3) the original seller may demand in writing that the buyer turn over to the seller control of the litigation including settlement or else be barred from any remedy over and if the seller 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) of this section apply to any obligation of a buyer to hold the seller harmless against infringement or the like pursuant to ORS 72.3120 (Warranty of title and against infringement) (3). [1961 c.726 §72.6070 (Effect of acceptance)]

Notes of Decisions

When the facts are undisputed the appellate court must rule as a matter of law that the notice was or was not timely. Metro Inv. Corp. v. Portland Rd. Lbr. Yard, Inc., 263 Or 76, 501 P2d 312 (1972)

Ordinarily, whether or not the notice was timely is a ques­tion of fact for the trier of fact and a finding on such issue will not be disturbed on ap­peal. Metro Inv. Corp. v. Portland Rd. Lbr. Yard, Inc., 263 Or 76, 501 P2d 312 (1972)

Where the buyer's initial notice satisfies the statute, his failure to renew his complaint for two years does not act as a statute of limita­tions and inflexibly cut off his right to assert his claim. Metro Inv. Corp. v. Portland Rd. Lbr. Yard, Inc., 263 Or 76, 501 P2d 312 (1972)

Provision for buyer to give seller notice of breach of warranty suit makes no change in law requiring proof of facts es­tab­lishing right of indemnity, and contemplates no duty to defend in advance of such proof. U.S. Fire Ins. Co. v. Chrysler Motors, 264 Or 362, 505 P2d 1137 (1973)

Seller, who was notified of defects in lumber within one month from date that first batch of large ship­ment of lumber was processed through buyer's dry kiln, received timely notice within meaning of this sec­tion. Oregon Lumber v. Dwyer Overseas Timber Products, 280 Or 437, 571 P2d 884 (1977)

Chapter 72

Law Review Cita­tions

53 OLR 468-473 (1974); 58 OLR 545 (1980)

1 Legislative Counsel Committee, CHAPTER 72—Sales, https://­www.­oregonlegislature.­gov/­bills_laws/­Archive/­2007ors72.­pdf (2007) (last ac­cessed Feb. 12, 2009).
 
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2007, Chapter 72, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­072ano.­htm (2007) (last ac­cessed Feb. 12, 2009).
 
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent. Currency Information