Iowa Code

Iowa Code § 554.2602 (2026)

Manner and effect of rightful rejection

✓ current as of July 2026

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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.

2. Subject to the provisions of the two following sections on rejected goods (sections 554.2603 and 554.2604),

a. after rejection any exercise of ownership by the buyer with respect to any commercial unit is wrongful as against the seller; and \n Tue Dec 09 22:02:40 2025 Iowa Code 2026, Chapter 554 (108, 4) §554.2602, UNIFORM COMMERCIAL CODE 44\n\n b. if the buyer has before rejection taken physical possession of goods in which the buyer does not have a security interest under the provisions of this Article (section 554.2711, subsection 3), the buyer 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

c. the buyer has no further obligations with regard to goods rightfully rejected.

3. The seller’s rights with respect to goods wrongfully rejected are governed by the provisions of this Article on seller’s remedies in general (section 554.2703). [C24, 27, 31, 35, 39, §9979; C46, 50, 54, 58, 62, §554.51; C66, 71, 73, 75, 77, 79, 81, §554.2602] 2015 Acts, ch 29, §92; 2016 Acts, ch 1011, §107 Referred to in §554.2606 \n

Notes of Decisions

Cited in 2 cases, 1975–2005 · leading case: Grace Label, Inc. v. Kliff, 355 F. Supp. 2d 965 (S.D. Iowa 2005).

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Grace Label, Inc. v. Kliff, 355 F. Supp. 2d 965 (S.D. Iowa 2005). · cites it 2× “See Iowa Code § 554.2602 (1). Grace Label argues that Kliff accepted the cards following his inspection of them at its premises as they were being produced and that the later cancellation following Barcel’s rejection was ineffective as a revocation of acceptance.”

Hayes v. Hettinga, 228 N.W.2d 181 (Iowa 1975). “2606(1); and that the court erred in finding there had been a rejection of the molds by defendant under § 554.2602; and, finally, as to the counterclaim, that the trial court improperly applied § 554.”

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