Professional Lens Plan v. Polaris Leasing Corp.

234 Kan. 742, 675 P.2d 887 (1984)

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Professional Lens Plan v. Polaris Leasing Corp.

Kansas Supreme Court
234 Kan. 742, 675 P.2d 887 (1984)

  • Written by Tom Squier, JD

Facts

Professional Lens Plan, Inc. (PLP) (plaintiff) ordered a computer from Impact Systems in 1979. After the computer was delivered, PLP encountered malfunctions with the computer that could be traced, in part, to a hard drive that had been manufactured by Okidata Corporation (Okidata) (defendant). P.L.P. and Okidata had never had any direct dealings or relationship. PLP sued to recover economic damages from Okidata. PLP argued that Okidata had breached implied warranties of merchantability and fitness. The trial court found that PLP had a valid cause of action against Okidata and allowed the lawsuit to proceed. Okidata argued on appeal to the Kansas Supreme Court that the trial court erred because there was no privity between Okidata and PLP.

Rule of Law

Issue

Holding and Reasoning (McFarland, J.)

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Casebooks

Sales

Key Terms

  • Implied Warranty of Fitness for a Particular PurposeAn implied warranty that arises if, at the time of contracting, a seller knows or has reason to know that a buyer (1) requires goods for a particular purpose and (2) is relying on the seller's expertise or judgment to provide or choose goods suitable for that purpose. If the goods are not fit for that purpose, the seller has breached the warranty.
  • Inherently dangerous objectAn object considered by a reasonably prudent person to be sufficiently dangerous that it would be negligent to allow such an object to be made available for use by others.
  • Implied Warranty of MerchantabilityA guarantee that goods sold will be of reasonable quality and fit for the ordinary purpose for which such goods are used.
  • Privity of ContractA relationship between two entities, usually as the result of being parties to a contract, such that the entities may sue or be sued by one another.
  • DamagesMoney awarded to an injured person as compensation for a harm or loss.

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