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Remedies Keyed to Tabb, 8th
C.R. Daniels, Inc. v. Yazoo Manufacturing Co.
Citation:
641 F. Supp. 205 (1986)Facts
In June 1981, Charles Silvernail of Daniels and James Kerr of Yazoo negotiated an agreement for Daniels to design and manufacture grass catcher bags for Yazoo’s lawn mowers. After approval of designs in December 1981 and frames in February 1982, Yazoo issued purchase orders for 20,000 bags and 10,500 frames. Daniels purchased materials and began manufacturing accordingly. By July 1982, Yazoo had received 8,368 bags and 4,466 frames when it issued a purchase order stating shipments should stop due to Consumer Product Safety Commission regulations. Kerr began noticing cracked chutes in June 1982 and sent one damaged bag to Daniels, who attributed the damage to abuse based on tire marks. Despite knowledge of widespread defects by December 1982, Kerr continued to indicate Yazoo would accept future deliveries and attempted to sell remaining inventory. Yazoo did not provide specific notice of the defect’s magnitude until June 1983 after litigation commenced. Inspection revealed ninety-two percent of bags in Yazoo’s inventory had cracked chutes due to defective polyethylene sheeting.
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