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TransAmerica Oil Case Study

Please discuss the following for the court case: Procedural History, Facts, Issue, Answer/Holding, Reasoning and Disposition.

See attached file for the court case on TransAmerica Oil Corporation v. Lynes.


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Procedural History, Facts, Issue, Answer/Holding, Reasoning and Disposition

The procedural history of this case arose from a jury decision that awarded Transamerica Oil Corporation a large litigation settlement for damages the jury ruled it suffered when Baker International Corporation and its subsidiary, Lynes Inc. breached an express warranty with Transamerica under Kansas law according to the jury. Baker International appealed the jury's decision and the United States Court of Appeals, Tenth Circuit decided to rule on the case determining the appropriate statute of limitations that would be applicable under Kansas' Uniform Commercial Code. In addition, the effect as well as the validity of disclaimers of warranties and limitations of remedies regarding invoices between the two companies that accompanied shipments of equipment had to be determined by the Tenth Circuit.

The facts of this case were that Transamerica's president responded to an advertisement set forth by the defendant in this case for production injection packers, which were devices that could be utilized by Transamerica to be inserted into its oil and gas wells for sealing off one zone from another to stop water from entering their well bore and disrupting production. Throughout the oil and gas industry it is commonplace for these packers to temporarily be used as holes, which are cased and cemented but in this case, the defendant advertised packers that were suitable for permanent use in open holes.

The advertisement predicated upon the assertion that ...

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This solution discusses various concepts with relation to a court case.