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Royal Business Machines, Inc. v. Lorraine Corp.

633 F.2d 34 (1980)

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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)

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Facts

Royal Business Machines, Inc. (Royal) (defendant) sold Lorraine Corp. (Lorraine) (plaintiff) numerous copying machines over a span of 18 months. 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 the cost of maintenance and supplies would remain low, (5) that the machines had been tested extensively and were 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

Issue

Holding and Reasoning (Baker, J.)

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