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L. Gillarde Co. v. Joseph Martinelli & Co., Inc.

168 F.2d 276 (1948)

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L. Gillarde Co. v. Joseph Martinelli & Co., Inc.

United States Court of Appeals for the First Circuit
168 F.2d 276 (1948)

Facts

L. Gillarde Company (Gillarde) (plaintiff) sold a carload of U.S. Grade No. 1 cantaloupes to Joseph Martinelli & Company, Inc. (Martinelli) (defendant). The purchase contract stated that the terms of sale were free on board (F.O.B.) on a “rolling acceptance final” basis. Martinelli rejected the shipment upon arrival because the cantaloupes were moldy. Gillarde filed a claim against Martinelli under the Perishable Agricultural Commodities Act (the act), seeking to recover the contract price. The secretary of agriculture concluded that Martinelli had no right of rejection because the sale was on a rolling-acceptance basis and that Martinelli forfeited the right to pursue any damages for breach of contract. Martinelli appealed to the district court, which reversed the secretary's ruling based on evidence that the mold existed at the time of shipment and that Martinelli had a right to reject. Gillarde appealed the district court’s ruling.

Rule of Law

Issue

Holding and Reasoning (Mahoney, J.)

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