Klein v. PepsiCo, Inc.
United States Court of Appeals for the Fourth Circuit
845 F.2d 76 (1988)
Eugene V. Klein (Klein) (plaintiff), who was interested in purchasing a used G-II corporate jet, learned from Patrick Janas (Janas), the president of Universal Jet Sales, Inc. (UJS), that PepsiCo, Inc. (Pepsico) (defendant) was selling such a jet. Klein authorized Janas to make an offer on the jet, with the proviso that the sale be subject to a factory inspection satisfying Klein and the execution of a definitive contract. After negotiation, Janas accepted a price of $4.6 million offered by PepsiCo and sent copies of proposed agreements to the parties. Although some defects were found at the inspection, most were cured during the inspection and the rest PepsiCo later agreed to have repaired. Two days before the deal between Klein and PepsiCo was supposed to close, PepsiCo’s chairman directed that the jet be taken off the market. After Pepsico's failure to comply with the demand by UJS for delivery of the Pepsico jet, an action was commenced in federal district court. The district court judge found that a contract had been formed, and since Pepsico agreed to make the repairs, the condition of a satisfactory inspection was met. Despite finding that money damages could be awarded to make Klein whole, the district court directed specific performance of the contract under the Uniform Commercial Code (UCC), as enacted in Virginia, relying on evidence that it would be very difficult and expensive to obtain a similar jet. Klein also testified that he would not want to purchase another G-II because the price had increased and he planned to purchase the plane for resale at a profit. Pepsico appealed.
Rule of Law
Holding and Reasoning (Ervin, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 724,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.Unlock this case briefRead our student testimonials
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.Learn about our approachRead more about Quimbee
Here's why 724,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 45,600 briefs, keyed to 983 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.