Facts:

Jendro Logging Company is a family-owned logging contractor based out of Washougal Washington. Jendro Logging has traditionally harvested Douglas fir timber in southwest Washington. However, Jendro Logging began investigating the feasibility of a fully mechanized hardwood pine logging operation when its main customer, Container Corporation, decided to expand hardwood production. In anticipating an increased demand for hardwood in conjunction with the operation of a new mill, Container requested that Jendro Logging harvest and supply hardwood for processing at its mill. In Eastern Washington, most suitable hardwood is located on steep remote forest lands. Because of the high accident risk in the harvesting of pine, Jendro Logging did not want to harvest hardwood by the conventional method of manual felling of trees. Because Jendro Logging had already been successful in its totally mechanized fir logging operation, it began a search for improved methods of harvesting logging pine centered on mechanizing the process to reduce labor, minimize personal injury and insurance cost, and improve efficiency and productivity.

Jendro Logging ultimately purchased several pieces of John Deere equipment to make up the system. The sales price of the machinery was $700,000.00. All the equipment came with a written John Deere "New Equipment Warranty," whereby John Deere agreed only to repair or replace the equipment during the warranty period and did not warrant the suitability of the equipment. In the "New Equipment Warranty," John Deere expressly provided the following: (a) John Deere would repair or replace parts that were defective in material or workmanship; (b) a disclaimer of any express warranties or implied warranties of merchantability or fitness for a particular purpose; (c) an exclusion of all incidental or consequential damages; and (d) no authority for the dealer to make any representations, promises, modifications, or limitations of John Deere's written warranty. Hoping to sell more equipment if the Jendro Logging system was successful, however, John Deere agreed to assume part of the risk of the new enterprise by extending the standard equipment warranties notwithstanding the unusual use and modification to the equipment.

Soon after being placed in operation on the steep Eastern Washington slopes, the machinery began to experience numerous problems. John Deere made more than $150,000.00 in warranty repairs on the equipment. However, Jendro Logging now contends the logging systems failed to operate as represented by John Deere and, as a result, it suffered a substantial financial loss.

Address the issue of whether this is a sales contract under U.C.C. and what remedy (if any) would be appropriate. Take either Jendro Logging or John Deere's position in drafting your paper.

1. Do legal research for precedent at both the federal and state level

List what are the legal issue(s) facing the plaintiff or defendant.

Discuss the exact facts that lead you to identify these issues (not all facts).

What is the applicable law and how does it relate to the facts (your analysis)?

What outcome do you believe the court will come to (conclusion)?