Yttro Corp. v. X-Ray Marketing Assn., Inc.
New Jersey Superior Court, Appellate Division
559 A.2d 3 (1989)
- Written by Rich Walter, JD
Facts
In July 1985, Yttro Corporation (plaintiff) and X-Ray Marketing Association, Inc. (XMA) (defendant) contracted for Yttro’s sale and XMA’s purchase of 1,000 patented x-ray filters. In February 1987, after Yttro had delivered 262 filters, XMA learned that Yttro neither owned nor had licensed the filters’ patent. XMA returned the filters it had already accepted and refused delivery of the remaining 738 filters. In March 1988, Yttro concluded a licensing agreement with the filters’ patent-holder. The agreement was effective retroactively to February 1985. Yttro sued XMA to enforce the July 1985 contract. In its defense, XMA argued that Yttro’s patent violation gave XMA a right to rescind the contract. The trial-level New Jersey Superior Court applied New Jersey’s Uniform Commercial Code (UCC) and entered summary judgment for XMA. Yttro appealed to the court’s appellate division.
Rule of Law
Issue
Holding and Reasoning (Ashbey, J.)
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