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TeeVee Toons, Inc. v. Gerhard Schubert GmbH

2006 WL 2463537 (2006)

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TeeVee Toons, Inc. v. Gerhard Schubert GmbH

United States District Court for the Southern District of New York

2006 WL 2463537 (2006)

Facts

New York company TeeVee Toons, Inc. (TVT) and Steven Gottlieb, Inc. (SGI) (plaintiffs) designed a cardboard packaging named the Biobox to package audio and video cassettes. The plaintiffs contracted German firm Gerhard Schubert GmbH (Schubert) (defendant) to develop a system that could mass-produce the Biobox. The written contract provided that Schubert would build the system. Attached to the contract was a Terms and Conditions addendum (addendum), which contained boilerplate language that included (1) a section disclaiming all warranties and (2) a merger clause invalidating any prior agreements made between the parties. After significant delays and other problems, the plaintiffs brought suit against Schubert, claiming that the system was not fit for either its ordinary purpose or the particular purpose for which TVT ordered it, in violation of Articles 35 and 36 of the United Nations Convention on the International Sale of Goods (CISG). The district court denied Schubert’s motion to dismiss. Schubert moved for summary judgment, arguing that the provisions of the addendum fully disclaimed any CISG-related warranties. TVT contended that Schubert’s representative had expressly told TVT that the boilerplate language of the addendum was inapplicable to the Biobox agreement and that TVT should ignore the addendum.

Rule of Law

Issue

Holding and Reasoning (Casey, J.)

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