Hart-Kraft Motor Co. v. Indianapolis Motor Car Co.

109 N.E. 39, 183 Ind. 311, 1915 Ind. LEXIS 62
CourtIndiana Supreme Court
DecidedJune 3, 1915
DocketNo. 22,233
StatusPublished
Cited by5 cases

This text of 109 N.E. 39 (Hart-Kraft Motor Co. v. Indianapolis Motor Car Co.) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hart-Kraft Motor Co. v. Indianapolis Motor Car Co., 109 N.E. 39, 183 Ind. 311, 1915 Ind. LEXIS 62 (Ind. 1915).

Opinion

Morris, J.

— Suit by appellant, a corporation, against appellee, a corporation, on account, for automobile parts. The amount demanded was less than $300. Appellee filed two paragraphs of counterclaim in each of which damages were demanded in the sum of $10,000. In what is termed the second amended first paragraph of amended counterclaim [313]*313appellee alleges that prior to March 5, 1909, it was engaged in selling commercial motor cars in Indianapolis and throughout Indiana, and specially engaged in selling a commercial ear manufactured by the Eapid Motor Vehicle Company, for sale at the minimum price of $1,850, and in the sale of which appellee had a lucrative business; that in connection with its business appellee maintained a garage where it kept cars of its Indianapolis purchasers, when not in use, under printed contracts a form of which is set out, and which provides that, for a certain consideration appellee agrees to keep the car in running order, and the machinery thereof in proper adjustment, provided that the car is placed in the garage every night, and to furnish an emergency car, free of charge in case of breakdown in the city, and to keep up all repairs caused by defective workmanship or materials, excepting tires. This form of contract prohibits the owner from making any mechanical adjustments of his car,, and applies only to cars operated within five miles of Monument Circle in Indianapolis. The paragraph further alleges that appellee desired to handle cars of less capacity and a less selling price than the Eapid, and appellant represented to it that it was placing on the market a commercial car that would fill appellee’s requirements; that appellant was manufacturing its cars at. York, Pennsylvania, and represented to appellee that, if it would purchase certain of its cars and take a sales agency for Indiana, with the exception of a limited territory, it would execute a certain guaranty; that thereupon, on March 5, 1909, a written contract was executed by the parties, which is set out, and provides that appellee, designated as “dealer”, shall have the right to sell, and appellant designated as “company” will sell to it “the following styles and types of commercial power wagons, namely, A-0, A-l, A-2, A-3, A-4, for the territory and at the prices and terms as stated in a memorandum attached, reading as follows:

[314]*314(a) That the territory under this contract shall be * * * all of * *' * Indiana excepting the Counties of Lake, Porter, Laporte, St. Joseph, Elkhart, Lagrange-and Steuben. * * * (b) That the undersigned, the dealer, hereby orders and agrees to take the following quantities of the styles and types of Hart-Kraft commercial power wagons, as are designated in the contract, to which this is attached, at the prices and terms as stated below and within the period of time embraced in the contract; the deposit as per terms of said contract to be due and payable at the túne of acceptance of same by the Hart-Kraft Motor Co.
Quantity Model Retail Dealers
3 A-3 $1,200.00 $960.00
1 A-4 1,225.00 980.00
and the option to purchase at list-price less 20%, twenty-five (25) additional models specifications together with deposits on three (3) of which to be submitted not later than March 15th, 1909. One model A-3 to be delivered at once, 2 model A-3, 1 model A-4 to be shipped not later than April 1st, 1909. (c) This agreement does not cover, or grant selling rights on vehicles of special design or construction, or any vehicle not regularly catalogued and mentioned in the body of this contract, all the above being subject to special agreement.
Terms: Net cash, or sight draft on bill of lading for balance due f. o. b. shipping point.”

The contract further provides that orders from the dealer may be accepted subject to delay in completion caused by strikes, etc.; that the dealer with each order shall make prepayment or pay therefor on shipment or presentation of sight draft with bill of lading attached; that accounts for parts shall be due on the fifteenth of the month following shipments; that claims under the guarantee must be made according to rules mailed dealer; that the dealer must work for the sale of the company’s wagons to the best of its ability, and must not sell wagons or parts thereof at less than prices named in retail price lists.

The guaranty, applying only to wagons maintained under said maintenance contract, and under the dealer’s direct supervision, is as follows:

[315]*315“We guarantee all parts of our power wagons, except rubber tires, for a period of one year following the date of shipment, against inherent defects and breakages of defective materials and will replace free of cost, f. o. b. factory, broken parts if defects are shown; defective or broken parts to be returned to factory, charges prepaid.”

It is further averred that appellee paid appellant $3,862 for the four wagons described in the contract, and after-wards on June 19, 1909, purchased two cars of model A-4, and one car of model A-3, for which it paid appellant the sum of $2,920; that appellee sold two model A-3 cars for $2,400 to the Excelsior Laundry Co., of Indianapolis, and one model A-4 car for $1,200 to the Progress Laundry Co., of Indianapolis, and said purchasers at the time executed maintenance contracts for the keeping of the cars, and they were thereafter used in the usual and ordinary manner; that within ten days thereafter, many defects appeared in each of the cars, and appellee at once notified appellant thereof and shipped to appellant the defective parts, with charges prepaid and in compliance with the conditions of the contract, but appellant failed to replace them or was so dilatory in replacing them that appellee was compelled, pursuant to the provisions of the maintenance contracts, to remove certain parts of the four unsold cars to supply the places of the defective parts; that from time to time appellee returned to appellant certain inherent defective parts of the three cars, which should have been replaced free of charge, but that appellant demanded payment for such replacements, to the extent of more than $300; that the parts, for the value of which appellant sues, are the replacements so demanded of it by appellee under its guarantee; that said cars were inherently defective, and were unable to stand the wear and tear of ordinary usage; that practically all of the four cars were used in keeping the three cars in repair, and in addition thereto appellee was compelled to keep a force of expert mechanics at such task, at an expense of [316]

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Cite This Page — Counsel Stack

Bluebook (online)
109 N.E. 39, 183 Ind. 311, 1915 Ind. LEXIS 62, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hart-kraft-motor-co-v-indianapolis-motor-car-co-ind-1915.