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Royal Business Machines, Inc. v. Lorraine Corp.

United States Court of Appeals for the Seventh Circuit
633 F.2d 34 (1980)


Facts

Royal Business Machines, Inc. (Royal) (defendant) entered into a commercial agreement with Lorraine Corp. (Lorraine) (plaintiff) that extended over a span of 18 months. Royal sold Lorraine copying machines. Lorraine filed suit for breach of warranties and fraud. Lorraine alleged that Royal breached the following express warranties: (1) that the machines and component parts were of high quality, (2) that repair frequency would be very low, (3) that replacement parts would be readily available, (4) that cost of maintenance and supplies would remain low, (5) that the machines had been tested extensively and ready for the market, (6) that the machines would bear out substantial profits, (7) that the machines were safe and could not cause fires, and (8) that necessary service calls would remain low. After a bench trial, the court awarded compensatory and punitive damages to Lorraine. Royal appealed to the United States Court of Appeals for the Seventh Circuit.

Rule of Law

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Issue

The issue section includes the dispositive legal issue in the case phrased as a question. To access this section, start your 7-day free trial of Quimbee for Law Students.

Holding and Reasoning (Baker, J.)

The holding and reasoning section includes:

  • A “yes” or “no” answer to the question framed in the issue section;
  • A summary of the majority or plurality opinion, using the CREAC method; and
  • The procedural disposition (e.g. reversed and remanded, affirmed, etc.).

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