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Contracts - breach of warranty of merchantability

Frank's Maintenance and Engineering, Inc., orally ordered steel tubing from C.A. Roberts Co. for use in the manufacture of motorcycle front fork tubes. Since these front fork tubes bear the bulk of the weight of a motorcycle, the steel used must be of high quality. Roberts Co. sent an acknowledgment with conditions of sale including one that limited consequential damages and restricted remedies available upon breach by requiring claims for defective equipment to be promptly made upon receipt. The conditions were located on the back of the acknowledgment. The legend "conditions of sale on reverse side" was stamped over so that on first appearance it read "No conditions of sale on reverse side." Roberts delivered the order in December 1975. The steel had no visible defects; however, when Frank's Maintenance began using the steel in its manufacture in the summer of 1976, it discovered that the steel was pitted and cracked beyond repair. Frank's Maintenance informed Roberts Co. of the defects, revoked its acceptance of the steel, and sued for breach of warranty of merchantability.

Is the limitation of rights enforceable?

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Problem:

Frank's Maintenance and Engineering, Inc., orally ordered steel tubing from C.A. Roberts Co. for use in the manufacture of motorcycle front fork tubes. Since these front fork tubes bear the bulk of the weight of a motorcycle, the steel used must be of high quality. Roberts Co. sent an acknowledgment with conditions of sale including one that limited consequential damages and restricted remedies available upon breach by requiring claims for defective equipment to be promptly made upon receipt. The conditions were located on the back of the acknowledgment. The legend "conditions of sale on reverse side" was ...

Solution Summary

Frank's Maintenance informed Roberts Co. of the defects, revoked its acceptance of the steel, and sued for breach of warranty of merchantability. This soluion discusses if the limitation of rights is enforceable.

$2.19