Allis-Chalmers Manufacturing Co. v. Frank

221 N.W. 75, 57 N.D. 295, 1928 N.D. LEXIS 126
CourtNorth Dakota Supreme Court
DecidedJuly 27, 1928
StatusPublished
Cited by18 cases

This text of 221 N.W. 75 (Allis-Chalmers Manufacturing Co. v. Frank) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Allis-Chalmers Manufacturing Co. v. Frank, 221 N.W. 75, 57 N.D. 295, 1928 N.D. LEXIS 126 (N.D. 1928).

Opinions

Burr, J.

Plaintiff seeks to foreclose a certain chattel mortgage in the form of a bill of sale on one model 15-25 Allis-Chalmers tractor No. 21269 with motor No. 15299 ; one No. 43 3-bottom LaCrosse plow serial No. 543; and two 14” breaker bottoms, given by defendant to secure the payment of his note made March 9, 1926 for $800, due Nov. 1, 1926, with interest at 8% per annum. No part of the note has ever been paid.

■ The defendant admits the making of the note and the giving of the chattel mortgage but alleges he purchased said machinery from the *297 plaintiff under special representations and warranties regarding tlie tractor and that relying on these representations and warranties he paid part of the purchase price and gave this note for the remainder. He alleges a breach of these warranties and a rescission of the contract by him. He then sets up a counterclaim wherein he realleges these statements, and says that by reason of the breach of the warranties he “has suffered damages in the sum of $'765 paid to the plaintiff and the further sum of $300 for loss of time and loss of part of the crop that he failed to plant by reason of such defective tractor.” There is no objection to the plows.

The plaintiff replies to the counterclaim alleging that the defendant purchased the tractor from the machine firm of Odou, Arnold & Myron and not from the plaintiff; that this “sale was consummated by a contract in writing . . . which said contract showed all the terms, conditions and warranties made and entered into in said sale; ” that the plaintiff complied with all of its agreements and conditions and that the defendant failed and neglected to fulfil any of his conditions and agreements; that the defendant never rescinded the contract or gave notice of rescission; that the said machinery firm was indebted to the plaintiff and that plaintiff accepted defendant’s note from the machinery company as part payment of this indebtedness; that “the note was accepted ... in good faith for a valuable consideration” and that they “had no notice of any infirmity in the instrument or defect in the title of said vendors or of any defense to the payment of the same existing in favor of or claimed by the defendant.”

The trial court made findings of fact- and conclusions of law favorable to the defendant and gave judgment against the plaintiff for $989.40. Plaintiff appeals and demands a trial de novo.

The evidence shows the machinery mortgaged was ordered in writing by the defendant from the firm of Odou, Arnold & Myron of Hettinger, N. D., upon a blank described as “Customer’s Order for Allis-Chalmers Tractors, etc.” This order provides “this order shall not be binding upon the parties hereto until the same is approved in writing by an executive officer of the Allis-Chalmers Mfg. Co.” The form on its face shows conclusively that it is prepared by and for the plaintiff and provides that whatever notes are given “shall be made payable to Allis-Chalmers Manufacturing Company,” and the note *298 is so made. The evidence shows, the firm of O. A. & M. was dealer or agent of the plaintiff, taking orders for machinery of the plaintiff and receiving commission on the sales, and that after the defendant’s order was taken sent in an order for six tractors. This disposes of the claim of plaintiff that the firm, as distinct from it, was the vendor, and also any claim based on the taking of the note for indebtedness due it from this firm.

There is no testimony whatever to the effect that at the time of the purchase of the tractor any warranties were made by the plaintiff or by its agent the machinery company as alleged in the answer. No wit? ness -testifies to any such statements and the: testimony is. utterly devoid of any proof regarding special guaranties' or warranties whatsoever. Therefore we are confined to the warranty set forth in the written contract, and such implied warranties as may be attached thereto.

In the written, order given by the defendant is found the following statement of warranties, guaranties and terms, to wit:

“The undersigned asserts that he enters this order upon the inducement of no other representation than that contained in the standard warranty of the maunfacturer, as herein below set forth:

“Allis-Chalmers Manufacturing Company guarantees that it will repair, F. O. B. its factory, or furnish without charge f. o. b. its factory, a similar part to replace any material in its tractors which within one year after the date of sale is proven to the satisfaction of the company to have been defective at the time it was sold; provided that the purchaser shall record with the company, within ten (10) days of the date of delivery, the number and date of the purchase of such tractor, and provided that all parts claimed defective shall, be returned, properly identified, to the Company at Milwaukee, Wisconsin, charges prepaid.

“Purchaser agrees that retention or possession for more than six days after first day’s use of such machinery purchased herein, shall be construed as conclusive evidence that the warranty has been fulfilled and that the company is hereby released from all further warranty, except as to defective parts.

“This order shall not be binding upon the parties hereto until the *299 same is approved in writing by an executive officer of the Allis-Ohalmers Manufacturing Company.”

Under subdivision 1 of § 15, chapter 202 of the Session Laws of 1917 being § 6002al5 of the Supplement:

“Where the buyer, expressly or by implication, makes known to the seller the particular purpose for which the goods are required, and it appears that the buyer relies upon the seller’s skill or judgment (whether he be the grower or manufacturer or not), there is an implied warranty that the goods shall be reasonably fit for that purpose.”

Whatever contract the parties made is made in contemplation of the law in existence at that time. There is nothing in the testimony to the effect that the parties said for what purpose they wanted the machinery but the contract was for the purchase of the tractor and “one No. 43 3-bottom plow and 2 breaker bottoms.” These, together with the tractor, were included in the one contract for purchase. The payment made was a payment on the total purchase price of $1,577.50. The plows cost $192.50 but the payment was over $700, so that the goods were all purchased at the same time. The plaintiff must have known for what purpose the machinery was bought. Hence, even aside from the statute, governing such transactions (§ 5991a of the Supp.) the goods were purchased with the implied warranty, that they were “reasonably fit” for the purpose made known by the buyer to the seller. For a breach of this warranty the pirrchaser Avas entitled to rescind the contract.

Under the terms of the contract inwolved the only expressed guaranty or warranty is that the plaintiff Avould repair any part of the tractor which Avithin one year from the date of sale is found to have been defective at the time it Avas sold or furnish a similar part to replace the defective part under the same conditions.

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Bluebook (online)
221 N.W. 75, 57 N.D. 295, 1928 N.D. LEXIS 126, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allis-chalmers-manufacturing-co-v-frank-nd-1928.