1. Why was the months-long delay important to the court in deciding whether there was revocation of...

Question:

1. Why was the months-long delay important to the court in deciding whether there was revocation of acceptance?

2. Why was the rejection of the bag-tying portion of the machine important to the court’s decision?

3. List the steps Country Pasta should have taken to allow it to still have a revocation of acceptance.


Country Pasta, located in Polson, Montana, makes noodles. Viking manufactures, fabricates, and services industrial packaging equipment. In 2006, Gary Ivory, the production manager at Country Pasta, contacted Robb Leonhard, one of the owners of Viking, to discuss a quotation for a more automatic pasta bagging system. Country Pasta wanted a system in which the pasta bags would be weighed more accurately and in which the bags would be closed or tied more automatically. Ivory provided Leonhard with a sample of Country Pasta’s product in the bag it was using at the time and indicated what he wanted the product to look like. Leonhard then sent Ivory photographs of a bag of Country Pasta’s product with a tin-tie on it and stated, “this is basically what your look is going to be.” Viking included the photographs on the second page of the quotation.

On July 13, 2007, Country Pasta accepted Viking’s quotation to purchase a pasta packaging system. The quotation shows photos of the equipment and of Country Pasta bags closed with a tin-tie. The items related to the tin-tie applicator were priced at $47,173. The total purchase price for the product packaging system was $178,074. The quotation called for a “checkout,” or a preshipment inspection, by Country Pasta “prior to shipment.”

In April 2008, Ivory and Scott Knutson went to Viking’s facility to perform the checkout of the packaging system. The tin-ties on the finished bags did not regularly close up during this demonstration; however, Viking worked on the packaging system and told Country Pasta that the system was “working better.” Country Pasta approved the shipment and the packaging system was delivered to Country Pasta before June 17, 2008. Ivory helped unpack and set up the equipment; he did not notice any defects.

The contract provided that “if requested by the customer, [Viking] will provide a service technician for installation of the quoted equipment.” The contract did not include free installation but estimated that two days of installation and training for Country Pasta employees would cost $3,373. The contract also provided that “[a]n installation will be considered complete when all systems purchased from [Viking] perform per the Product Performance Specifications.”

From June 17, 2008, through June 25, 2008, Viking technician Tim Parrish worked on installing the equipment and training Country Pasta’s employees in Montana. During this visit, Parrish discovered that Country Pasta workers would drop or tap bags full of pasta on a table in order to settle the noodles to allow for a twist tie to be applied to the bag. Parrish made adjustments to the machinery, including adding a shelf to assist in the settling of the noodles. Despite these efforts, the tin-tie applicator was not functioning properly at the time he left. Viking and Country Pasta agreed to split the cost of a second visit by Parrish.

Parrish returned to Country Pasta in July 2008 with Steve Almberg, a representative from Weigh Right, the manufacturer of the scale. Parrish and Almberg improved the operation of the scale and bagger by making modifications to Country Pasta’s equipment feeding the scale and bagger. A Country Pasta memorandum regarding a meeting with Parrish on July 10, 2008, notes the improvements with the scale and bagger but states that “[t]here is no way the current tin-tie system will work with our product.” Parrish left Montana and was not asked to return to Montana to continue working on the applicator.

On December 4, 2008, five months after delivery of the packaging system, and four months after Parrish’s final………………………..

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Business Law Principles for Today's Commercial Environment

ISBN: 978-1305575158

5th edition

Authors: David P. Twomey, Marianne M. Jennings, Stephanie M Greene

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