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4. Luke owned a small factory of long-standing reputation, and bid successfully on a contract from Atlas Aircraft. The contract was for Luke to supply

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4. Luke owned a small factory of long-standing reputation, and bid successfully on a contract from Atlas Aircraft. The contract was for Luke to supply custom-made hydraulic cylinders for landing-gear assemblies. To do the job, Luke required a heavy milling machine capable of handling large pieces with high degrees of precision. He had heard of the impressive capability of memo mill, and therefore ordered one. Over a period of 6 months, Luke found the machine was constantly working out of adjustment. :\"Six times, Luke caught as many as 2 faults in a job lot of 20 cylinders, and one occasion Atlas Nrcraft returned a cylinder as 'sub-standard'. After consulting all the Stormsen manuals, Luke called in the area distributor for consultation. No long term solution for the adjustment problem seemed apparent, and Luke began placing calls to the Stormsen Company itself. In the meantime, more cylinders were being rejected by Atlas, whose chief engineer (a personal friend of Luke) wrote a letter to Luke wondering why . . suddenly Atlas was receiving crap". Luke's calls to Stormsen were fielded by an engineer/manager, Cranston, but Luke remained unsatisfied. Within another month Luke visited a tradeshow where Stormsen machines were displayed. In the display area was Cranston, and two meeting for the first time, exchanged words and shouting began. In the end they had drawn a crowed of factory owners and two writers from a trade journal. The exchange ended with Luke waving the Atlas letter before the onlookers shouting, he 1500 produces crap, Atlas calls the 1500 crap, and I call the 1500 crap!" mama...\" Discuss the tort issues which may arise from this situation and the positions of the parties. [10 Marks]

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