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2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-2A402 - Anticipatory repudiation

47-2A402.
Anticipatory repudiation
If either party repudiates a lease contract with respect to a performance not yet due under the lease contract,  the loss of which performance will substantially impair the value of the lease contract to the other,  the aggrieved party may:
1. For a commercially reasonable time,  await retraction of repudiation and performance by the repudiating party;
2. Make demand pursuant to section 47-2A401 and await assurance of future performance adequate under the circumstances of the particular case;  or
3. Resort to any right or remedy upon default under the lease contract or this article,  even though the aggrieved party has notified the repudiating party that the aggrieved party would await the repudiating party's performance and assurance and has urged retraction.
In addition,  whether or not the aggrieved party is pursuing one of the foregoing remedies,  the aggrieved party may suspend performance or,  if the aggrieved party is the lessor,  proceed in accordance with the provisions of this article on the lessor's right to identify goods to the lease contract notwithstanding default or to salvage unfinished goods (section 47-2A524).
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-2A403 - Retraction of anticipatory repudiation

47-2A403.
Retraction of anticipatory repudiation
A. Until the repudiating party's next performance is due,  the repudiating party can retract the repudiation unless,  since the repudiation,  the aggrieved party has cancelled the lease contract or materially changed the aggrieved party's position or otherwise indicated that the aggrieved party considers the repudiation final.
B. Retraction may be by any method that clearly indicates to the aggrieved party that the repudiating party intends to perform under the lease contract and includes any assurance demanded under section 47-2A401.
C. Retraction reinstates a repudiating party's rights under a lease contract with due excuse and allowance to the aggrieved party for any delay occasioned by the repudiation.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-2A404 - Substituted performance

47-2A404.
Substituted performance
A. If without fault of the lessee,  the lessor and the supplier,  the agreed berthing,  loading or unloading facilities fail or the agreed type of carrier becomes unavailable or the agreed manner of delivery otherwise becomes commercially impracticable,  but a commercially reasonable substitute is available,  the substitute performance must be tendered and accepted.
B. If the agreed means or manner of payment fails because of domestic or foreign governmental regulation:
1. The lessor may withhold or stop delivery or cause the supplier to withhold or stop delivery unless the lessee provides a means or manner of payment that is commercially a substantial equivalent;  and
2. If delivery has already been taken,  payment by the means or in the manner provided by the regulation discharges the lessee's obligation unless the regulation is discriminatory,  oppressive or predatory.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-2A405 - Excused performance

47-2A405.
Excused performance
Subject to section 47-2A404 on substituted performance,  the following rules apply:
1. Delay in delivery or nondelivery in whole or in part by a lessor or a supplier who complies with paragraphs 2 and 3 of this section is not a default under the lease contract if performance as agreed has been made impracticable by the occurrence of a contingency the nonoccurrence of which was a basic assumption on which the lease contract was made or by compliance in good faith with any applicable foreign or domestic governmental regulation or order,  whether or not the regulation or order later proves to be invalid.
2. If the causes mentioned in paragraph 1 of this section affect only part of the lessor's or the supplier's capacity to perform,  he shall allocate production and deliveries among his customers but at his option may include regular customers not then under contract for sale or lease as well as his own requirements for further manufacture. He may so allocate in any manner that is fair and reasonable.
3. The lessor seasonably shall notify the lessee and in the case of a finance lease the supplier seasonably shall notify the lessor and the lessee,  if known,  that there will be delay or nondelivery and,  if allocation is required under paragraph 2 of this section,  of the estimated quota thus made available for the lessee.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-2A406 - Procedure on excused performance

47-2A406.
Procedure on excused performance
A. If the lessee receives notification of a material or indefinite delay or an allocation justified under section 47-2A405,  the lessee may by written notification to the lessor as to any goods involved,  and with respect to all of the goods if under an installment lease contract the value of the whole lease contract is substantially impaired (section 47-2A510):
1. Terminate the lease contract (section 47-2A505,  subsection B);  or
2. Except in a finance lease that is not a consumer lease,  modify the lease contract by accepting the available quota in substitution,  with due allowance from the rent payable for the balance of the lease term for the deficiency but without further right against the lessor.
B. If,  after receipt of a notification from the lessor under section 47-2A405,  the lessee fails so to modify the lease agreement within a reasonable time not exceeding thirty days,  the lease contract lapses with respect to any deliveries affected.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-2A407 - Irrevocable promises; finance leases

47-2A407.
Irrevocable promises;  finance leases
A. In the case of a finance lease that is not a consumer lease the lessee's promises under the lease contract become irrevocable and independent upon the lessee's acceptance of the goods.
B. A promise that has become irrevocable and independent under subsection A:
1. Is effective and enforceable between the parties,  and by or against third parties including assignees of the parties;  and
2. Is not subject to cancellation,  termination,  modification,  repudiation,  excuse or substitution without the consent of the party to whom the promise runs.
C. This section does not affect the validity under any other law of a covenant in any lease contract making the lessee's promises irrevocable and independent upon the lessee's acceptance of the goods.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-2A501 - Default; procedure

47-2A501.
Default;  procedure
A. Whether the lessor or the lessee is in default under a lease contract is determined by the lease agreement and this chapter.
B. If the lessor or the lessee is in default under the lease contract,  the party seeking enforcement has rights and remedies as provided in this chapter and,  except as limited by this chapter,  as provided in the lease agreement.
C. If the lessor or the lessee is in default under the lease contract,  the party seeking enforcement may reduce the party's claim to judgment,  or otherwise enforce the lease contract by self-help or any available judicial procedure or nonjudicial procedure,  including administrative proceeding,  arbitration or the like,  in accordance with this article.
D. Except as otherwise provided in section 47-1305,  subsection A or this chapter or the lease agreement,  the rights and remedies referred to in subsections B and C of this section are cumulative.
E. If the lease agreement covers both real property and goods,  the party seeking enforcement may proceed under this article as to the goods,  or under other applicable law as to both the real property and the goods in accordance with that party's rights and remedies in respect of the real property,  in which case this article does not apply.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-2A503 - Modification or impairment of rights and remedies

47-2A503.
Modification or impairment of rights and remedies
A. Except as otherwise provided in this chapter,  the lease agreement may include rights and remedies for default in addition to or in substitution for those provided in this chapter and may limit or alter the measure of damages recoverable under this chapter.
B. Resort to a remedy provided under this chapter or in the lease agreement is optional unless the remedy is expressly agreed to be exclusive. If circumstances cause an exclusive or limited remedy to fail of its essential purpose,  or provision for an exclusive remedy is unconscionable,  remedy may be had as provided in this chapter.
C. Consequential damages may be liquidated under section 47-2A504,  or may otherwise be limited,  altered or excluded unless the limitation,  alteration or exclusion is unconscionable. Limitation,  alteration or exclusion of consequential damages for injury to the person in the case of consumer goods is prima facie unconscionable but limitation,  alteration or exclusion of damages where the loss is commercial is not prima facie unconscionable.
D. Rights and remedies on default by the lessor or the lessee with respect to any obligation or promise collateral or ancillary to the lease contract are not impaired by this chapter.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-2A504 - Liquidation of damages

47-2A504.
Liquidation of damages
A. Damages payable by either party for default,  or any other act or omission,  including indemnity for loss or diminution of anticipated tax benefits or loss or damage to lessor's residual interest,  may be liquidated in the lease agreement but only at an amount or by a formula that is reasonable in light of the then anticipated harm caused by the default or other act or omission.
B. If the lease agreement provides for liquidation of damages,  and such provision does not comply with subsection A of this section,  or such provision is an exclusive or limited remedy that circumstances cause to fail of its essential purpose,  remedy may be had as provided in this Article.
C. If the lessor justifiably withholds or stops delivery of goods because of the lessee's default or insolvency (section 47-2A525 or 47-2A526),  the lessee is entitled to restitution of any amount by which the sum of his payments exceeds:
1. The amount to which the lessor is entitled by virtue of terms liquidating the lessor's damages in accordance with subsection A of this section;  or
2. In the absence of those terms,  twenty per cent of the then present value of the total rent the lessee was obligated to pay for the balance of the lease term,  or,  in the case of a consumer lease,  the lesser of such amount or five hundred dollars.
D. A lessee's right to restitution under subsection C of this section is subject to offset to the extent the lessor establishes:
1. A right to recover damages under the provisions of this chapter other than subsection A of this section;  and
2. The amount or value of any benefits received by the lessee directly or indirectly by reason of the lease contract.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-2A505 - Cancellation and termination and effect of cancellation, termination, rescission or fraud on rights and remedies

47-2A505.
Cancellation and termination and effect of cancellation,  termination,  rescission or fraud on rights and remedies
A. On cancellation of the lease contract,  all obligations that are still executory on both sides are discharged,  but any right based on prior default or performance survives,  and the cancelling party also retains any remedy for default of the whole lease contract or any unperformed balance.
B. On termination of the lease contract,  all obligations that are still executory on both sides are discharged but any right based on prior default or performance survives.
C. Unless the contrary intention clearly appears,  expressions of " cancellation" ,  " rescission"  or the like of the lease contract may not be construed as a renunciation or discharge of any claim in damages for an antecedent default.
D. Rights and remedies for material misrepresentation or fraud include,  without limitation,  all rights and remedies available under this Article for default.
E. Neither rescission nor a claim for rescission of the lease contract nor rejection or return of the goods may bar or be deemed inconsistent with a claim for damages or other right or remedy.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-2A506 - Statute of limitations

47-2A506.
Statute of limitations
A. An action for default under a lease contract,  including breach of warranty or indemnity,  must be commenced within four years after the cause of action accrued. By the original lease contract the parties may reduce the period of limitation to not less than one year.
B. A cause of action for default accrues when the act or omission on which the default or breach of warranty is based is or should have been discovered by the aggrieved party,  or when the default occurs,  whichever is later. A cause of action for indemnity accrues when the act or omission on which the claim for indemnity is based is or should have been discovered by the indemnified party,  whichever is later.
C. If an action commenced within the time limited by subsection A is so terminated as to leave available a remedy by another action for the same default or breach of warranty or indemnity,  the other action may be commenced after the expiration of the time limited and within six months after the termination of the first action unless the termination resulted from voluntary discontinuance or from dismissal for failure or neglect to prosecute.
D. This section does not alter the law on tolling of the statute of limitations nor does it apply to causes of action that have accrued before this chapter becomes effective.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-2A507 - Proof of market rent; time and place

47-2A507.
Proof of market rent;  time and place
A. Damages based on market rent (section 47-2A519 or 47-2A528) are determined according to the rent for the use of the goods concerned for a lease term identical to the remaining lease term of the original lease agreement and prevailing at the times specified in sections 47-2A519 and 47-2A528.
B. If evidence of rent for the use of the goods concerned for a lease term identical to the remaining lease term of the original lease agreement and prevailing at the times or places described in this chapter is not readily available,  the rent prevailing within any reasonable time before or after the time described or at any other place or for a different lease term which in commercial judgment or under usage of trade would serve as a reasonable substitute for the one described may be used,  making any proper allowance for the difference,  including the cost of transporting the goods to or from the other place.
C. Evidence of a relevant rent prevailing at a time or place or for a lease term other than the one described in this chapter offered by one party is not admissible unless and until he has given the other party notice the court finds sufficient to prevent unfair surprise.
D. If the prevailing rent or value of any goods regularly leased in any established market is in issue,  reports in official publications or trade journals or in newspapers or periodicals of general circulation published as the reports of that market are admissible in evidence. The circumstances of the preparation of the report may be shown to affect its weight but not its admissibility.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-2A508 - Lessee's remedies

47-2A508.
Lessee's remedies
A. If a lessor fails to deliver the goods in conformity to the lease contract (section 47-2A509) or repudiates the lease contract (section 47-2A402),  or a lessee rightfully rejects the goods (section 47-2A509) or justifiably revokes acceptance of the goods (section 47-2A517),  then with respect to any goods involved,  and with respect to all of the goods if under an installment lease contract the value of the whole lease contract is substantially impaired (section 47-2A510),  the lessor is in default under the lease contract and the lessee may:
1. Cancel the lease contract (section 47-2A505,  subsection A);
2. Recover so much of the rent and security as has been paid and is just under the circumstances;
3. Cover and recover damages as to all goods affected whether or not they have been identified to the lease contract (sections 47-2A518 and 47-2A520),  or recover damages for nondelivery (sections 47-2A519 and 47-2A520);
4. Exercise any other rights or pursue any other remedies provided in the lease contract.
B. If a lessor fails to deliver the goods in conformity to the lease contract or repudiates the lease contract,  the lessee may also:
1. If the goods have been identified,  recover them (section 47-2A522);  or
2. In a proper case,  obtain specific performance or replevy the goods (section 47-2A521).
C. If a lessor is otherwise in default under a lease contract,  the lessee may exercise the rights and pursue the remedies provided in the lease contract,  which may include a right to cancel the lease,  and in section 47-2A519,  subsection C.
D. If a lessor has breached a warranty,  whether express or implied,  the lessee may recover damages (section 47-2A519,  subsection D).
E. On rightful rejection or justifiable revocation of acceptance,  a lessee has a security interest in goods in the lessee's possession or control for any rent and security that has been paid and any expenses reasonably incurred in their inspection,  receipt,  transportation,  and care and custody and may hold those goods and dispose of them in good faith and in a commercially reasonable manner,  subject to section 47-2A527,  subsection E.
F. Subject to the provisions of section 47-2A407,  a lessee,  on notifying the lessor of the lessee's intention to do so,  may deduct all or any part of the damages resulting from any default under the lease contract from any part of the rent still due under the same lease contract.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-2A509 - Lessee's rights on improper delivery; rightful rejection

47-2A509.
Lessee's rights on improper delivery;  rightful rejection
A. Subject to the provisions of section 47-2A510 on default in installment lease contracts,  if the goods or the tender or delivery fail in any respect to conform to the lease contract,  the lessee may reject or accept the goods or accept any commercial unit or units and reject the rest of the goods.
B. Rejection of goods is ineffective unless it is within a reasonable time after tender or delivery of the goods and the lessee seasonably notifies the lessor.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-2A510 - Installment lease contracts; rejection and default

47-2A510.
Installment lease contracts;  rejection and default
A. Under an installment lease contract a lessee may reject any delivery that is nonconforming if the nonconformity substantially impairs the value of that delivery and cannot be cured or the nonconformity is a defect in the required documents,  but if the nonconformity does not fall within subsection B and the lessor or the supplier gives adequate assurance of its cure,  the lessee must accept that delivery.
B. Whenever nonconformity or default with respect to one or more deliveries substantially impairs the value of the installment lease contract as a whole there is a default with respect to the whole. But,  the aggrieved party reinstates the installment lease contract as a whole if the aggrieved party accepts a nonconforming delivery without seasonably notifying of cancellation or brings an action with respect only to past deliveries or demands performance as to future deliveries.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-2A511 - Merchant lessee's duties as to rightfully rejected goods

47-2A511.
Merchant lessee's duties as to rightfully rejected goods
A. Subject to any security interest of a lessee (section 47-2A508,  subsection E),  if a lessor or a supplier has no agent or place of business at the market of rejection,  a merchant lessee,  after rejection of goods in his possession or control,  shall follow any reasonable instructions received from the lessor or the supplier with respect to the goods. In the absence of those instructions,  a merchant lessee shall make reasonable efforts to sell,  lease or otherwise dispose of the goods for the lessor's account if they threaten to decline in value speedily. Instructions are not reasonable if on demand indemnity for expenses is not forthcoming.
B. If a merchant lessee (subsection A of this section) or any other lessee (section 47-2A512) disposes of goods,  he is entitled to reimbursement either from the lessor or the supplier or out of the proceeds for reasonable expenses of caring for and disposing of the goods and,  if the expenses include no disposition commission,  to such commission as is usual in the trade,  or if there is none,  to a reasonable sum not exceeding ten per cent of the gross proceeds.
C. In complying with this section or section 47-2A512,  the lessee is held only to good faith. Good faith conduct hereunder is neither acceptance or conversion nor the basis of an action for damages.
D. A purchaser who purchases in good faith from a lessee pursuant to this section or section 47-2A512 takes the goods free of any rights of the lessor and the supplier even though the lessee fails to comply with one or more of the requirements of this chapter.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-2A512 - Lessee's duties as to rightfully rejected goods

47-2A512.
Lessee's duties as to rightfully rejected goods
A. Except as otherwise provided with respect to goods that threaten to decline in value speedily (section 47-2A511) and subject to any security interest of a lessee (section 47-2A508,  subsection E):
1. The lessee,  after rejection of goods in the lessee's possession,  shall hold them with reasonable care at the lessor's or the supplier's disposition for a reasonable time after the lessee's seasonable notification of rejection;
2. If the lessor or the supplier gives no instructions within a reasonable time after notification of rejection,  the lessee may store the rejected goods for the lessor's or the supplier's account or ship them to the lessor or the supplier or dispose of them for the lessor's or the supplier's account with reimbursement in the manner provided in section 47-2A511;  but
3. The lessee has no further obligations with regard to goods rightfully rejected.
B. Action by the lessee pursuant to subsection A of this section is not acceptance or conversion.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-2A513 - Cure by lessor of improper tender or delivery; replacement

47-2A513.
Cure by lessor of improper tender or delivery;  replacement
A. If any tender or delivery by the lessor or the supplier is rejected because nonconforming and the time for performance has not yet expired,  the lessor or the supplier may seasonably notify the lessee of the lessor's or the supplier's intention to cure and may then make a conforming delivery within the time provided in the lease contract.
B. If the lessee rejects a nonconforming tender that the lessor or the supplier had reasonable grounds to believe would be acceptable with or without money allowance,  the lessor or the supplier may have a further reasonable time to substitute a conforming tender if he seasonably notifies the lessee.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-2A514 - Waiver of lessee's objections

47-2A514.
Waiver of lessee's objections
A. In rejecting goods,  a lessee's failure to state a particular defect that is ascertainable by reasonable inspection precludes the lessee from relying on the defect to justify rejection or to establish default:
1. If,  stated seasonably,  the lessor or the supplier could have cured it (section 47-2A513);  or
2. Between merchants if the lessor or the supplier after rejection has made a request in writing for a full and final written statement of all defects on which the lessee proposes to rely.
B. A lessee's failure to reserve rights when paying rent or other consideration against documents precludes recovery of the payment for defects apparent in the documents.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-2A515 - Acceptance of goods

47-2A515.
Acceptance of goods
A. Acceptance of goods occurs after the lessee has had a reasonable opportunity to inspect the goods and:
1. The lessee signifies or acts with respect to the goods in a manner that signifies to the lessor or the supplier that the goods are conforming or that the lessee will take or retain them in spite of their nonconformity;  or
2. The lessee fails to make an effective rejection of the goods (section 47-2A509,  subsection B).
B. Acceptance of a part of any commercial unit is acceptance of that entire unit.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-2A516 - Effect of acceptance of goods; notice of default; burden of establishing default after acceptance; notice of claim or litigation to person answerable over

47-2A516.
Effect of acceptance of goods;  notice of default;  burden of establishing default after acceptance;  notice of claim or litigation to person answerable over
A. A lessee must pay rent for any goods accepted in accordance with the lease contract,  with due allowance for goods rightfully rejected or not delivered.
B. A lessee's acceptance of goods precludes rejection of the goods accepted. In the case of a finance lease,  if made with knowledge of a nonconformity,  acceptance cannot be revoked because of it. In any other case,  if made with knowledge of a nonconformity,  acceptance cannot be revoked because of it unless the acceptance was on the reasonable assumption that the nonconformity would be seasonably cured. Acceptance does not of itself impair any other remedy provided by this article or the lease agreement for nonconformity.
C. If a tender has been accepted:
1. Within a reasonable time after the lessee discovers or should have discovered any default,  the lessee shall notify the lessor and the supplier,  if any,  or be barred from any remedy against the party not notified;
2. Except in the case of a consumer lease,  within a reasonable time after the lessee receives notice of litigation for infringement or the like (section 47-2A211) the lessee shall notify the lessor or be barred from any remedy over for liability established by the litigation;  and
3. The burden is on the lessee to establish any default.
D. If a lessee is sued for breach of a warranty or other obligation for which a lessor or a supplier is answerable over the following apply:
1. The lessee may give the lessor or the supplier,  or both,  written notice of the litigation. If the notice states that the person notified may come in and defend and that if the person notified does not do so that person will be bound in any action against that person by the lessee by any determination of fact common to the two litigations,  then unless the person notified after seasonable receipt of the notice does come in and defend that person is so bound.
2. The lessor or the supplier may demand in writing that the lessee turn over control of the litigation including settlement if the claim is one for infringement or the like (section 47-2A211) or else be barred from any remedy over. If the demand states that the lessor or the supplier agrees to bear all expense and to satisfy any adverse judgment,  then unless the lessee after seasonable receipt of the demand does turn over control the lessee is so barred.
E. Subsections C and D of this section apply to any obligation of a lessee to hold the lessor or the supplier harmless against infringement or the like (section 47-2A211).
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-2A517 - Revocation of acceptance of goods

47-2A517.
Revocation of acceptance of goods
A. A lessee may revoke acceptance of a lot or commercial unit whose nonconformity substantially impairs its value to the lessee if the lessee has accepted it:
1. Except in the case of a finance lease,  on the reasonable assumption that its nonconformity would be cured and it has not been seasonably cured;  or
2. Without discovery of the nonconformity if the lessee's acceptance was reasonably induced either by the lessor's assurances or,  except in the case of a finance lease,  by the difficulty of discovery before acceptance. In the case of a lease,  other than a consumer lease,  as to which any modification or waiver must be in writing,  any assurance by the lessor which the lessee claims to have induced the lessee's acceptance must also be in writing.
B. Except in the case of a finance lease that is not a consumer lease,  a lessee may revoke acceptance of a lot or commercial unit if the lessor defaults under the lease contract and the default substantially impairs the value of that lot or commercial unit to the lessee.
C. If the lease agreement so provides,  the lessee may revoke acceptance of a lot or commercial unit because of other defaults by the lessor.
D. Revocation of acceptance must occur within a reasonable time after the lessee discovers or should have discovered the ground for it and before any substantial change in condition of the goods which is not caused by the nonconformity. Revocation is not effective until the lessee notifies the lessor.
E. A lessee who so revokes has the same rights and duties with regard to the goods involved as if the lessee had rejected them.
F. The lessee and lessor may,  by a conspicuous writing contained in the lease or elsewhere,  provide that the provisions of this section will not apply to a new motor vehicle which is otherwise subject to the provisions of title 44,  chapter 9,  article 5. Any such agreement may be made before or after the discovery of the nonconformity and may take the form of an option extended to either lessor or lessee. When the parties have so agreed,  then for the purposes of title 44,  chapter 9,  article 5,  the lessee shall be deemed the consumer of the motor vehicle,  with the lessor having all the rights of a lienholder in such motor vehicle.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-2A518 - Cover; substitute goods

47-2A518.
Cover;  substitute goods
A. After a default by a lessor under the lease contract of the type described in section 47-2A508,  subsection A,  or,  if agreed,  after other default by the lessor,  the lessee may cover by making any purchase or lease of or contract to purchase or lease goods in substitution for those due from the lessor.
B. Except as otherwise provided with respect to damages liquidated in the lease agreement (section 47-2A504) or otherwise determined pursuant to agreement of the parties (sections 47-1302 and 47-2A503),  if a lessee's cover is by a lease agreement substantially similar to the original lease agreement and the new lease agreement is made in good faith and in a commercially reasonable manner,  the lessee may recover from the lessor as damages the present value,  as of the date of the commencement of the term of the new lease agreement,  of the rent under the new lease agreement applicable to that period of the new lease term which is comparable to the then remaining term of the original lease agreement minus the present value as of the same date of the total rent for the then remaining lease term of the original lease agreement,  and any incidental or consequential damages,  less expenses saved in consequence of the lessor's default.
C. If a lessee's cover is by lease agreement that for any reason does not qualify for treatment under subsection B of this section,  or is by purchase or otherwise,  the lessee may recover from the lessor as if the lessee had elected not to cover and section 47-2A519 governs.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-2A519 - Lessee's damages for nondelivery, repudiation, default and breach of warranty in regard to accepted goods

47-2A519.
Lessee's damages for nondelivery,  repudiation,  default and breach of warranty in regard to accepted goods
A. Except as otherwise provided with respect to damages liquidated in the lease agreement (section 47-2A504) or otherwise determined pursuant to agreement of the parties (sections 47-1302 and 47-2A503),  if a lessee elects not to cover or a lessee elects to cover and the cover is by lease agreement that for any reason does not qualify for treatment under section 47-2A518,  subsection B,  or is by purchase or otherwise,  the measure of damages for nondelivery or repudiation by the lessor or for rejection or revocation of acceptance by the lessee is the present value,  as of the date of the default,  of the then market rent minus the present value as of the same date of the original rent,  computed for the remaining lease term of the original lease agreement,  together with incidental and consequential damages,  less expenses saved in consequence of the lessor's default.
B. Market rent is to be determined as of the place for tender or,  in cases of rejection after arrival or revocation of acceptance,  as of the place of arrival.
C. Except as otherwise agreed,  if the lessee has accepted goods and given notification (section 47-2A516,  subsection C),  the measure of damages for nonconforming tender or delivery or other default by a lessor is the loss resulting in the ordinary course of events from the lessor's default as determined in any manner that is reasonable together with incidental and consequential damages,  less expenses saved in consequence of the lessor's default.
D. Except as otherwise agreed,  the measure of damages for breach of warranty is the present value at the time and place of acceptance of the difference between the value of the use of the goods accepted and the value if they had been as warranted for the lease term,  unless special circumstances show proximate damages of a different amount,  together with incidental and consequential damages,  less expenses saved in consequence of the lessor's default or breach of warranty.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-2A520 - Lessee's incidental and consequential damages

47-2A520.
Lessee's incidental and consequential damages
A. Incidental damages resulting from a lessor's default include expenses reasonably incurred in inspection,  receipt,  transportation,  and care and custody of goods rightfully rejected or goods the acceptance of which is justifiably revoked,  any commercially reasonable charges,  expenses or commissions in connection with effecting cover,  and any other reasonable expense incident to the default.
B. Consequential damages resulting from a lessor's default include:
1. Any loss resulting from general or particular requirements and needs of which the lessor at the time of contracting had reason to know and which could not reasonably be prevented by cover or otherwise;  and
2. Injury to person or property proximately resulting from any breach of warranty.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-2A521 - Lessee's right to specific performance or replevin

47-2A521.
Lessee's right to specific performance or replevin
A. Specific performance may be decreed if the goods are unique or in other proper circumstances.
B. A decree for specific performance may include any terms and conditions as to payment of the rent,  damages or other relief that the court deems just.
C. A lessee has a right of replevin,  detinue,  sequestration,  claim and delivery,  or the like for goods identified to the lease contract if after reasonable effort the lessee is unable to effect cover for those goods or the circumstances reasonably indicate that the effort will be unavailing.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-2A522 - Lessee's right to goods on lessor's insolvency

47-2A522.
Lessee's right to goods on lessor's insolvency
A. Subject to subsection B of this section and even though the goods have not been shipped,  a lessee who has paid a part or all of the rent and security for goods identified to a lease contract (section 47-2A217) on making and keeping good a tender of any unpaid portion of the rent and security due under the lease contract may recover the goods identified from the lessor if the lessor becomes insolvent within ten days after receipt of the first installment of rent and security.
B. A lessee acquires the right to recover goods identified to a lease contract only if they conform to the lease contract.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-2A523 - Lessor's remedies

47-2A523.
Lessor's remedies
A. If a lessee wrongfully rejects or revokes acceptance of goods or fails to make a payment when due or repudiates with respect to a part or the whole,  then,  with respect to any goods involved,  and with respect to all of the goods if under an installment lease contract the value of the whole lease contract is substantially impaired (section 47-2A510),  the lessee is in default under the lease contract and the lessor may:
1. Cancel the lease contract (section 47-2A505,  subsection A);
2. Proceed respecting goods not identified to the lease contract (section 47-2A524);
3. Withhold delivery of the goods and take possession of goods previously delivered (section 47-2A525);
4. Stop delivery of the goods by any bailee (section 47-2A526);
5. Dispose of the goods and recover damages (section 47-2A527),  or retain the goods and recover damages (section 47-2A528),  or in a proper case recover rent (section 47-2A529);
6. Exercise any other rights or pursue any other remedies provided in the lease contract.
B. If a lessor does not fully exercise a right or obtain a remedy to which the lessor is entitled under subsection A of this section,  the lessor may recover the loss resulting in the ordinary course of events from the lessee's default as determined in any reasonable manner,  together with incidental damages,  less expenses saved in consequence of the lessee's default.
C. If a lessee is otherwise in default under a lease contract,  the lessor may exercise the rights and pursue the remedies provided in the lease contract,  which may include a right to cancel the lease. In addition,  unless otherwise provided in the lease contract:
1. If the default substantially impairs the value of the lease contract to the lessor,  the lessor may exercise the rights and pursue the remedies provided in subsection A or B of this section;  or
2. If the default does not substantially impair the value of the lease contract to the lessor,  the lessor may recover as provided in subsection B of this section.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-2A524 - Lessor's right to identify goods to lease contract

47-2A524.
Lessor's right to identify goods to lease contract
A. After default by the lessee under the lease contract of the type described in section 47-2A523,  subsection A or section 47-2A523,  subsection C,  paragraph 1 or,  if agreed,  after other default by the lessee,  the lessor may:
1. Identify to the lease contract conforming goods not already identified if at the time the lessor learned of the default they were in the lessor's or the supplier's possession or control;  and
2. Dispose of goods (section 47-2A527,  subsection A) that demonstrably have been intended for the particular lease contract even though those goods are unfinished.
B. If the goods are unfinished,  in the exercise of reasonable commercial judgment for the purposes of avoiding loss and of effective realization,  an aggrieved lessor or the supplier may either complete manufacture and wholly identify the goods to the lease contract or cease manufacture and lease,  sell or otherwise dispose of the goods for scrap or salvage value or proceed in any other reasonable manner.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-2A525 - Lessor's right to possession of goods

47-2A525.
Lessor's right to possession of goods
A. If a lessor discovers the lessee to be insolvent,  the lessor may refuse to deliver the goods.
B. After a default by the lessee under the lease contract of the type described in section 47-2A523,  subsection A or section 47-2A523,  subsection C,  paragraph 1 or,  if agreed,  after other default by the lessee,  the lessor has the right to take possession of the goods. If the lease contract so provides,  the lessor may require the lessee to assemble the goods and make them available to the lessor at a place to be designated by the lessor which is reasonably convenient to both parties. Without removal,  the lessor may render unusable any goods employed in trade or business,  and may dispose of goods on the lessee's premises (section 47-2A527).
C. The lessor may proceed under subsection B of this section without judicial process if it can be done without breach of the peace or the lessor may proceed by action.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-2A526 - Lessor's stoppage of delivery in transit or otherwise

47-2A526.
Lessor's stoppage of delivery in transit or otherwise
A. A lessor may stop delivery of goods in the possession of a carrier or other bailee if the lessor discovers the lessee to be insolvent and may stop delivery of carload,  truckload,  planeload or larger shipments of express or freight if the lessee repudiates or fails to make a payment due before delivery,  whether for rent,  security or otherwise under the lease contract,  or for any other reason the lessor has a right to withhold or take possession of the goods.
B. In pursuing its remedies under subsection A,  the lessor may stop delivery until:
1. Receipt of the goods by the lessee;
2. Acknowledgment to the lessee by any bailee of the goods,  except a carrier,  that the bailee holds the goods for the lessee;  or
3. Such an acknowledgment to the lessee by a carrier via reshipment or as a warehouse.
C. To stop delivery,  a lessor shall so notify as to enable the bailee by reasonable diligence to prevent delivery of the goods.
D. After notification,  the bailee shall hold and deliver the goods according to the directions of the lessor,  but the lessor is liable to the bailee for any ensuing charges or damages.
E. A carrier who has issued a nonnegotiable bill of lading is not obliged to obey a notification to stop received from a person other than the consignor.
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-2A527 - Lessor's rights to dispose of goods

47-2A527.
Lessor's rights to dispose of goods
A. After a default by a lessee under the lease contract of the type described in section 47-2A523,  subsection A or subsection C,  paragraph 1 or after the lessor refuses to deliver or takes possession of goods (section 47-2A525 or 47-2A526),  or,  if agreed,  after other default by a lessee,  the lessor may dispose of the goods concerned or the undelivered balance thereof by lease,  sale or otherwise.
B. Except as otherwise provided with respect to damages liquidated in the lease agreement (section 47-2A504) or otherwise determined pursuant to agreement of the parties (sections 47-1302 and 47-2A503),  if the disposition is by lease agreement substantially similar to the original lease agreement and the new lease agreement is made in good faith and in a commercially reasonable manner,  the lessor may recover from the lessee as damages accrued and unpaid rent as of the date of the commencement of the term of the new lease agreement,  the present value,  as of the same date,  of the total rent for the then remaining lease term of the original lease agreement minus the present value,  as of the same date,  of the rent under the new lease agreement applicable to that period of the new lease term which is comparable to the then remaining term of the original lease agreement,  and any incidental damages allowed under section 47-2A530,  less expenses saved in consequence of the lessee's default.
C. If the lessor's disposition is by lease agreement that for any reason does not qualify for treatment under subsection B of this section,  or is by sale or otherwise,  the lessor may recover from the lessee as if the lessor had elected not to dispose of the goods and section 47-2A528 governs.
D. A subsequent buyer or lessee who buys or leases from the lessor in good faith for value as a result of a disposition under this section takes the goods free of the original lease contract and any rights of the original lessee even though the lessor fails to comply with one or more of the requirements of this chapter.
E. The lessor is not accountable to the lessee for any profit made on any disposition. A lessee who has rightfully rejected or justifiably revoked acceptance shall account to the lessor for any excess over the amount of the lessee's security interest (section 47-2A508,  subsection E).
2023 Arizona Revised Statutes › Title 47 - Uniform Commercial Code › § 47-2A528 - Lessor's damages for nonacceptance, failure to pay, repudiation or other default

47-2A528.
Lessor's damages for nonacceptance,  failure to pay,  repudiation or other default
A. Except as otherwise provided with respect to damages liquidated in the lease agreement (section 47-2A504) or otherwise determined pursuant to agreement of the parties (sections 47-1302 and 47-2A503),  if a lessor elects to retain the goods or a lessor elects to dispose of the goods and the disposition is by lease agreement that for any reason does not qualify for treatment under section 47-2A527,  subsection B,  or is by sale or otherwise,  the lessor may recover from the lessee as damages for a default of the type described in section 47-2A523,  subsection A or subsection C,  paragraph 1,  or,  if agreed,  for other default of the lessee:
1. Accrued and unpaid rent as of the date of default if the lessee has never taken possession of the goods,  or,  if the lessee has taken possession of the goods,  as of the date the lessor repossesses the goods or an earlier date on which the lessee makes a tender of the goods to the lessor;
2. The present value as of the date determined under paragraph 1 of the total rent for the then remaining lease term of the original lease agreement minus the present value as of the same date of the market rent at the place where the goods are located computed for the same lease term;  and
3. Any incidental damages allowed under section 47-2A530,  less expenses saved in consequence of the lessee's default.
B. If the measure of damages provided in subsection A of this section is inadequate to put a lessor in as good a position as performance would have,  the measure of damages is the present value of the profit,  including reasonable overhead,  the lessor would have made from full performance by the lessee,  together with any incidental damages allowed under section 47-2A530,  due allowance for costs reasonably incurred and due credit for payments or proceeds of disposition.