Case Study Essay

Submitted By shorttam23
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Transamerica Oil Corporation, Plaintiff-Appellee, v. Lynes, Inc. and Baker International Corporation, Defendants-Appellants
No. 81-1505
United States Court Of Appeals For The Tenth Circuit
723 F.2d 758; 1983 U.S. App. LEXIS 14288; 37 U.C.C. Rep. Serv. (Callaghan) 1076
Procedural history
Transamerica Oil Corporation brought suit to Lynes, Inc. and Baker International Corporation under the Kansas Uniform Commercial Code (UCC) for breach of an express warranty. Court ruling was in favor of the plaintiff and Transamerica Oil Corporation and was awarded damages. Lynes, Inc. and Baker International Corporation appealed the decision.
Facts
Transamerica's president, Harold Brown, saw a Lynes Inc. advertisement for "production injection packers" in a trade journal. Lynes' advertisement stated that its production injection packer was suitable for permanent use in open holes. Brown telephoned Baker's district manager, Jack Spencer, and told Spencer that he was interested in purchasing the production injection packer for use as a permanent completion device for oil and gas wells in lieu of the casing and cementing process. Transamerica's president testified that Spencer (employee of Lynes)"assured" him that the packers would work as advertised.
Transamerica purchased ten packers. Invoices that came with each shipment 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 and limited the purchaser's remedy to replacement of or credit for defective equipment or parts.
Transamerica Plaintiff later first filed suit claiming the products failed to work as promised and advertised, then later filed on a claim based on breach of express warranty. The trial court excluded from evidence invoices that contained the limitations of remedy and awarded plaintiff $196,577.62. Lynes appealed the decision claiming the suit was barred by the Kansas statute of limitations and that Transamerica expressly agreed to a limitation of liability and a limitation of remedies by signing invoices that contained disclaimers.
Issue
Under the Kansas Uniform Commercial Code (UCC), what is the appropriate statute of limitations and the effect and validity of disclaimers of warranties and limitations of remedies in invoices
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