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A & M Produce Co. v. FMC Corp.

California Court of Appeal
186 Cal.Rptr. 114 (1982)


Facts

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

The rule of law is the black letter law upon which the court rested its decision.

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Issue

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Holding and Reasoning (Wiener, J.)

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  • A "yes" or "no" answer to the question framed in the issue section;
  • A summary of the majority or plurality opinion, using the CREAC method; and
  • The procedural disposition (e.g. reversed and remanded, affirmed, etc.).

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