Case Study - Transamerica V. Lynes
Business and Management
Submitted By gldnamazon
TransAmerica Oil Corporation v. Lynes, Inc & Baker International Corporation
This is a case of breach of an express warranty, subsequent decision, and appeal in the State of Kansas and the issue is whether or not breach of an express warranty warrants an award of damages under the Uniform Commercial Code.
Harold Brown, TransAmerica's president, purchased 10 production injection packers typically used for temporary purposes, but advertised as a permanent solution. With most shipments, an invoice was included that contained language disclaiming express or implied warranties and limiting the purchaser's remedies. The statute of limitations pursuant to this case is four years. Under Kansas law, advertising may form a part of an express warranty.
The written documents the defendants rely on were each titled "Sales and Service Invoice." The introductory sentence on the face of the invoice above the signature line for the purchaser's agent [**10] begins, "I certify that the above materials or services have been received." That sentence also purports to require the person signing to declare that he or she is authorized to sign the memorandum as agent of the owner or contractor. These words indicate that the document is a delivery receipt and possibly a billing statement, but not a fully integrated contract.
The sentence above the agent's signature line also declares that the "materials or services have been received on the terms and conditions set forth on the reverse side hereof, which the undersigned has read and understood." The reverse side contains a full page of statements disclaiming express and implied warranties, making prices, rates, and terms subject to change without notice, designating other charges that will be shifted to the purchaser, and requiring payment within thirty days.