Transamerica V. Lynes

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Case Brief: TRANSAMERICA OIL CORPORATION v. LYNES, INC and Baker Internat’l Corporation

Procedural history
The plaintiff purchaser (Transamerica Oil Corporation) brought action to recover damages resulting from defendant sellers’ (Lynes, Inc) breach of an express warranty under Kansas Uniform Commercial Code. The U.S. District Court for the District of Kansas awarded damages to the purchaser. The sellers appealed. Facts

Harold Brown, president of Transameria, saw defendants’ advertisement for “production injection packers” in a trade journal. Packers are frequently employed for temporary use. Defendants’ advertisement, however, stated its packer was suitable for permanent use. Brown telephoned Lynes and spoke with a sales representative. Lynes sent Brown additional advertising and descriptive literature also stating the packer was suitable for permanent use. Brown telephoned Baker’s district manager, Jack Spencer, and said he was interested in purchasing the packer for permanent use. The details of the conversation are controverted. Brown testified that Spencer “assured” him the packers would work as advertised. Spencer testified he replied, “I think they would be applicable.” The plaintiff purchased ten packers in six shipments from defendants during the period at issue. Defendants delivered invoices with at least five of the shipments. Brown signed at least one of the invoices; two invoices were signed by employees of the plaintiff other than Brown. Each invoice contained language on its reverse side disclaiming any express or implied warranties other than products were free from defects in materials and workmanship. Each invoice purported to limit the purchaser’s remedy to replacement of or credit for defective equipment or parts. Plaintiff brought to action to recover damages resulting from defendant’s break of an express warranty. Defendants asserted that plaintiff’s claims are barred by the statute of limitations and that Brown...
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