Description

Case Assignment

Consolidated Agricultural Supplies, Inc. manufactures tractors.  Jim the farmer purchased a custom-made crop harvester from Consolidated.  In the purchase contract, conspicuously worded, was a statement that read “Consolidated warranties that the tractor will be free from defects in material and workmanship for 5 years.  The buyer’s exclusive remedy for defects in material and workmanship during the warranty period is repair or replacement of the defective part or assembly.  Consolidated hereby disclaims all other express warranties and all implied warranties.  Consolidated bears no liability beyond the exclusive remedies stated herein and disclaims liability for any and all consequential damages.”  Jim signed the contract and took delivery of the tractor.  The tractor failed due to a latent defect in the engine during the first season’s harvest, causing Jim to lose 1/2 of his crops due to over-ripening while he waited for Consolidated to fix the tractor.  Jim brings an action for damages for the loss of his crops due to breach of express warranty.  What can be the result?  Explain your answer, including the applicable UCC sections.

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