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Jetpac Group, Ltd. v. Bostek, Inc.
Citation:
942 F. Supp. 716 (1996)Facts
Jetpac, an export/import company, responded to an advertisement from NKS, a Canadian company seeking computer suppliers for a Russian customer. NKS had a contract to sell 3,000 computers to the Harmony cooperative in Russia for $1,050 each. Jetpac hired Al Konrad, who contacted Bostek to supply computers meeting specific specifications. Konrad visited Bostek’s facility and informed president Mark Hanson that Jetpac expected to sell 3,000 to 5,000 systems in Russia, starting with a test shipment of 100 units. Bostek agreed to supply 100 computers at $630 per unit. Bostek obtained the computers from a third-party assembler in California rather than building them in-house as implied. The delivered computers had significant defects including missing components, improper wiring, and monitors that exploded when connected to 220-volt power. The Russian customer refused to pay full price for the defective shipment and canceled the remaining 2,700-unit order.
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