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A & M Produce Co. v. FMC Corp.
California Court of Appeal
186 Cal.Rptr. 114 (1982)
A & M Produce Co. (A&M) (plaintiff) was a farm. A&M wanted to begin farming tomatoes. A&M solicited a bid from FMC Corp. (FMC) (defendant) for the necessary equipment. A&M signed FMC’s form contract that disclaimed warranties and consequential damages. FMC delivered the equipment, and A&M began to use the machinery to pick tomatoes. The machinery did not work properly and left A&M with a failed crop. FMC refused to give A&M a refund. A&M sued FMC for breach of warranty. The trial court held that the form-contract provisions disclaiming warranties and consequential damages were unconscionable, and excluded the disclaimers from the jury’s consideration. The jury returned a verdict in favor of A&M. FMC appealed, arguing the trial court erred in holding the disclaimers were unconscionable.
Rule of Law
Holding and Reasoning (Wiener, J.)
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