Essay on Case Study - Transamerica V. Lynes

933 Words Jun 22nd, 2014 4 Pages
TransAmerica Oil Corporation v. Lynes, Inc & Baker International Corporation
Case Brief

Issue:

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.

Facts:

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,
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The jury had only to determine whether the advertising and oral statements by Spencer constituted express warranties that the packers would work properly in open holes. The jury awarded TransAmerica $196,577.62 based on a claim of breach of express warranty.

Reasoning/Analysis:

In the debate as to whether or not the three-year statute applies, § 60-512 comes into play. If it applies, the plaintiff's claims are excluded. If § 84-2-725, four-year statute applies, the plaintiff's claims are timely. This case involves a sale of goods within the meaning of the UCC, Kan Stat Ann §§ 84-2-102, 84-2-105, and 84-2-106. Therefore the four-year statute applies and the claim is timely. Under Kansas law an express warranty may be created by "any affirmation of fact or promise made by the seller to the buyer which relates to the goods and becomes part of the basis of the bargain" or "any description of the goods which is made part of the basis of the bargain creates an express warranty that the goods shall conform to the description."

Lynes Inc and Baker argue that the descriptions and statements made by the sales associate, Spencer, were opinion only and insufficient to create an express warranty. Brown testified that Spencer assured him that the packers were suitable for permanent use. This statement if believed is sufficient to support the finding of an express warranty. Under Kansas law,