Sierra v. Burroughs

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.

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.

Must contract language excluding the implied warranties of merchantability & fitness for a particular purpose be conspicuous?

Sierra argued that the disclaimers weren't sufficiently conspicuous.