McCormick Machinery, Inc. v. Julian E. Johnson & Sons, Inc.
Florida District Court of Appeal
523 So. 2d 651 (1988)
- Written by Rich Walter, JD
Facts
McCormick Machinery, Inc. (McCormick) (plaintiff) sold a used tractor to Julian E. Johnson & Sons, Inc. (Johnson) (defendant). The scope of the sales contract’s disclaimer clause did not explicitly include merchantability. It was not clear how much Johnson knew, at the time of sale, about the tractor’s significant repair history and prior use for heavy construction, nor whether those considerations were factored into the tractor’s sale price. Upon accepting delivery, Johnson found the tractor to be in running condition. Thereafter, however, the tractor exhibited defects that required months of major repairs. Johnson attempted to revoke acceptance. McCormick sued for replevin. Johnson countersued. The trial court ruled that McCormick had effectively disclaimed all warranties. Nevertheless, the trial court ruled that because the tractor’s condition failed to meet Johnson’s reasonable expectations, the tractor was a nonconforming good for which Johnson was entitled to revoke acceptance and rescind the contract. Both parties appealed in Florida district court.
Rule of Law
Issue
Holding and Reasoning (Smith, C.J.)
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