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North American Lighting, Inc. v. Hopkins Manufacturing Corp.

United States Court of Appeals for the Seventh Circuit
37 F.3d 1253 (1994)


North American Lighting, Inc. (NAL) (plaintiff) produced headlamps for car manufacturers according to various industry standards, including Federal Motor Vehicle Safety Standard No. 108 (Standard 108). NAL purchased a Machine Vision System (MVS), which was a type of headlight-control device, from Hopkins Manufacturing Corporation (Hopkins) (defendant). Although the MVS prototype was not compliant with Standard 108, Hopkins promised to upgrade the software in the final version to be compliant. Upon delivery, the final system still failed to perform according to the requirements of Standard 108. Nevertheless, NAL continued to work with Hopkins, allowing Hopkins an extended opportunity to make the promised upgrades. The MVS was never satisfactorily upgraded to comply with Standard 108. NAL filed suit against Hopkins, seeking to revoke acceptance of the MVS and recover payment. The district court concluded that NAL had revoked its acceptance of the MVS in a timely manner and was not liable for the rental value of the MVS for the time between delivery and revocation. Hopkins appealed.

Rule of Law


Holding and Reasoning (Cudahy, C.J.)

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