Case Study-Transamerica Oil Corporation V. Lynes Incorporated

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Case Study-Transamerica Oil Corporation v. Lynes Incorporated I. Procedural History
Transamerica Oil Corporation, who conducts oil and gas drilling, solicited Lynes Incorporated about their advertisement regarding an injection packer and decided to purchase several of them only to determine that they did not function as advertised. Plaintiff decided to file suit, under the Kansas Uniform Commercial Code (UCC), the plaintiff’s claim that there was a breach of an express warranty by the defendant. The production injection packers did not perform as advertised. A jury in the state of Kansas found in favor of the plaintiff. The defendant appeals the decision. II. Facts

Transamerica's president, Harold Brown, saw a Lynes Inc. advertisement for production injection packers in a trade journal. Frequently, packers are employed for temporary use in holes that have been cased and cemented. Lynes' advertisement stated that its production injection packer was suitable for permanent use in open holes. Brown also testified that an employee of Lynes "assured" him that the packers would work as advertised. Under Kansas law, advertising may form a part of an express warranty. Transamerica purchased ten packers which came in six shipments. Invoices came with each shipment and invoice contained language on its reverse side disclaiming any express or implied warranties other than that the products were free from defects in materials and workmanship. Each invoice also purported to limit the purchaser's remedy to replacement of or credit for defective equipment or parts. Transamerica brought an action to recover damages resulting from what they thought was Lynes’ breach of an express warranty under the Kansas Uniform Commercial Code (UCC). Brown argued that the injection packers that were purchased from Lynes failed to perform as advertised. Lynes claimed that the action was barred by the statute of limitations and that Brown expressly agreed to a limitation of liability...
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