diff --git a/src/palace/manager/api/odl/api.py b/src/palace/manager/api/odl/api.py
index 74d990f50..d20d91c0a 100644
--- a/src/palace/manager/api/odl/api.py
+++ b/src/palace/manager/api/odl/api.py
@@ -442,6 +442,11 @@ def _checkout(
                     json_response.get("type")
                     == "http://opds-spec.org/odl/error/checkout/unavailable"
                 ):
+                    # TODO: This would be a good place to do an async availability update, since we know
+                    #   the book is unavailable, when we thought it was available. For now, we know that
+                    #   the license has no checkouts_available, so we do that update.
+                    license.checkouts_available = 0
+                    licensepool.update_availability_from_licenses()
                     raise NoAvailableCopies()
             raise
 
diff --git a/tests/manager/api/odl/test_api.py b/tests/manager/api/odl/test_api.py
index db84fe09f..9b558f7d5 100644
--- a/tests/manager/api/odl/test_api.py
+++ b/tests/manager/api/odl/test_api.py
@@ -738,7 +738,7 @@ def test_checkout_no_available_copies_unknown_to_us(
         )
 
         # We think there are copies available.
-        opds2_with_odl_api_fixture.setup_license(concurrency=1, available=1)
+        license = opds2_with_odl_api_fixture.setup_license(concurrency=1, available=1)
 
         # But the distributor says there are no available copies.
         opds2_with_odl_api_fixture.mock_http.queue_response(
@@ -751,11 +751,29 @@ def test_checkout_no_available_copies_unknown_to_us(
             checkout()
 
         assert db.session.query(Loan).count() == 0
+        assert license.license_pool.licenses_available == 0
+        assert license.checkouts_available == 0
+
+    def test_checkout_failures(
+        self,
+        db: DatabaseTransactionFixture,
+        opds2_with_odl_api_fixture: OPDS2WithODLApiFixture,
+    ) -> None:
+        checkout = partial(
+            opds2_with_odl_api_fixture.api.checkout,
+            opds2_with_odl_api_fixture.patron,
+            "pin",
+            opds2_with_odl_api_fixture.pool,
+            MagicMock(),
+        )
+
+        # We think there are copies available.
+        opds2_with_odl_api_fixture.setup_license(concurrency=1, available=1)
 
         # Test the case where we get bad JSON back from the distributor.
         opds2_with_odl_api_fixture.mock_http.queue_response(
             400,
-            response_type,
+            "application/api-problem+json",
             content="hot garbage",
         )