Essay on Case Study - Transamerica Oil Corp V Lynes

1678 Words Jun 14th, 2011 7 Pages
IN THE UNITED STATES COURT OF APPEALS FOR THE
TENTH CIRCUIT
Case No. 81-1505
Transamerica Oil Corporation, Plaintiff-Appellee,
v.
Lynes, Inc. and Baker International Corporation, Defendants-Appellants.
723F.2d 758; 1983 U.S. App. LEXIS 14288; 37 U.C.C. Rep. Serv. (Callaghan) 1076
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December 21, 1983

PROCEDURAL POSTURE

Plaintiff brought suit under the Kansas Uniform Commercial Code (UCC) to recover damages resulting from the breach of an express warranty by the defendant. A jury in the United States District Court for the District of Kansas found in favor of the plaintiff. The defendant appealed the decision.

SUMMARY OF KEY FACTS

1. Plaintiff filed suit in the United
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The court clarified the express warranty issue by stating that UCC § 84-2-316(1) is designed to protect a buyer “…from unexpected and unbargained language of disclaimer by denying effect to such language when inconsistent with language of express warranty”. The court used Young & Cooper, Inc. v. Vestring as case-in-point. However, in § 84-2-202 when a writing is intended by both parties, as in a signed invoice, a final expression of agreement is entered into. In Jordan v. Doonan Truck & Equipment, Inc. the court refused to admit evidence of express warranty when both parties had read and signed a sales contract containing a disclaimer. According to King v. Horizon Corp., the court may reverse the trial court’s decision only if clearly erroneous. Because both parties presented the express warranty issue properly and the warranty disclaimer language on or within the invoices was excluded from evidence the jury was instructed to determine only if the advertising and oral statements made by the defendant constituted an express warranty.

3. Defendant claimed plaintiff expressly agreed to a limitation of liability and a limitation of remedies by signing invoices that contained disclaimers.

Damages for breach of warranty are controlled by unconscionability. K.S.A. § 84-2-316(4), and 84-2-718 govern limitations of remedies. Section 84-2-719 specifically states that “…parties by contract may limit the buyer’s remedies to return

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