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Sierra v. Burroughs: Difference between revisions
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|issues=Must contract language excluding the implied warranties of merchantability & fitness for a particular purpose be conspicuous? | |issues=Must contract language excluding the implied warranties of merchantability & fitness for a particular purpose be conspicuous? | ||
|arguments=Sierra argued that the disclaimers weren't sufficiently conspicuous. | |arguments=Sierra argued that the disclaimers weren't sufficiently conspicuous. | ||
|holding=Yes. Contract language excluding the implied warranties of merchantability & fitness for a particular purpose must be conspicuous. | |||
|reasons=Under the [[Contracts/Parol evidence rule|parol-evidence rule]] & § 2-202 of the [[Contracts/Uniform Commercial Code|Uniform Commercial Code]], a written contract can't be contradicted by evidence of a prior or contemporaneous agreement. | |||
|case_text_links={{Infobox Case Brief/Case Text Link | |case_text_links={{Infobox Case Brief/Case Text Link | ||
|link=https://law.justia.com/cases/federal/appellate-courts/F2/890/108/387629/ | |link=https://law.justia.com/cases/federal/appellate-courts/F2/890/108/387629/ | ||
Revision as of 19:55, July 10, 2023
| Sierra v. Burroughs | |
| Court | 9th Circuit |
|---|---|
| Citation | |
| Date decided | May 9, 1989 |
Facts
Sierra Diesel Injection Service, Inc. ("Sierra Diesel"), a small family business, planned to purchase a posting machine from Burroughs Corporation ("Burroughs").
Burroughs advised that Sierra Diesel purchase a B-80 computer which would provide complete control over inventory, receivables, & invoicing.
The 2 parties executed hardware & software agreements for the B-80 computer; both agreements disclaimed express & implied warranties (merchantability & fitness were disclaimed).
The disclaimers were in bold & large print.Procedural History
When the computer malfunctioned, Sierra Diesel sued Burroughs for breach of express warranty & the implied warranty of merchantability.
The civil trial took place in the U.S. district court in Nevada.
Sierra won in the district court because a letter (outside of the executed agreements) exchanged provide warranties.
