Narrative Opinion Summary
In this case, Bodine Sewer, Inc. sued Eastern Illinois Precast, Inc. for breach of implied warranties of fitness for a particular purpose and merchantability concerning concrete pipes provided for a sewer project, while Eastern counterclaimed for unpaid materials. The trial court ruled in favor of Bodine, holding that Eastern's disclaimer of warranties was inconspicuous and thus ineffective, and that Eastern breached an express warranty that the materials would meet specified plans. The court awarded damages to Bodine and denied Eastern's counterclaim. Eastern appealed, arguing that Bodine waived warranty claims by accepting the pipes and that the defective delivery did not justify contract termination. However, the court upheld the trial court's ruling, finding that the August 25 delivery of substitute class V pipe constituted a perfect tender under the UCC, and Bodine's rejection of future deliveries was unjustified. Testimonies from unbiased witnesses corroborated Bodine's claims of receiving defective pipe, reinforcing the court's conclusion. The court emphasized that an express warranty cannot be negated by trade customs, and Eastern's failure to provide a conspicuous disclaimer nullified its attempt to exclude implied warranties. Consequently, the trial court's decisions were largely affirmed, except for the reversal of the award to Bodine for excess costs from other suppliers.
Legal Issues Addressed
Course of Dealing and Usage of Trade under the UCCsubscribe to see similar legal issues
Application: Eastern's attempt to exclude all warranties based on industry customs was not upheld due to the express warranty regarding material quality taking precedence over trade usage.
Reasoning: Subsection 2-316(1) indicates that negation of warranties is ineffective if deemed unreasonable, while subsection 1-205(4) asserts that express terms control over courses of dealing or trade usage when inconsistencies arise.
Express Warranties under the Uniform Commercial Codesubscribe to see similar legal issues
Application: Eastern's acknowledgment that materials supplied would meet specified plans was found to establish an express warranty that the materials would conform to these specifications.
Reasoning: Erickson acknowledged the materials from Eastern supplied to Bodine for the Decatur sewer project would meet specified plans. This acknowledgment, along with the stated 'Plans and Specifications by City of Decatur' on Eastern's quotations, establishes an express warranty that the materials would conform to these specifications.
Implied Warranties under the Uniform Commercial Codesubscribe to see similar legal issues
Application: The court found that Eastern Illinois Precast, Inc.'s disclaimer of implied warranties was ineffective due to its inconspicuousness, failing to meet the UCC's requirement for disclaimers to be both written and conspicuous.
Reasoning: The circuit court determined that Bodine was not bound by Eastern's 'Standard Conditions of Sale' due to lack of signature on the quotation forms. It also found that a disclaimer of warranties was ineffective because it was inconspicuous.
Rejection of Goods and Installment Contracts under the UCCsubscribe to see similar legal issues
Application: Bodine Sewer, Inc.'s rejection of the final shipment and refusal to accept further deliveries from Eastern Illinois Precast, Inc. was deemed unjustified as Eastern's delivery of substitute class V pipe constituted a perfect tender under the UCC.
Reasoning: The August 25 delivery was considered an attempt to cure the previous defects, and since it did not appear defective or incapable of performing as required, it constituted a perfect tender.