Industrial Rayon Corp. v. Clifton Yarn Mills, Inc.

165 A. 385, 310 Pa. 322, 1933 Pa. LEXIS 430
CourtSupreme Court of Pennsylvania
DecidedDecember 8, 1932
DocketAppeal, 318
StatusPublished
Cited by5 cases

This text of 165 A. 385 (Industrial Rayon Corp. v. Clifton Yarn Mills, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Industrial Rayon Corp. v. Clifton Yarn Mills, Inc., 165 A. 385, 310 Pa. 322, 1933 Pa. LEXIS 430 (Pa. 1932).

Opinion

Opinion by

Mr. Justice Simpson,

This is an action to recover the price of certain inferior rayon yarn, sold by plaintiff to defendant. The principal issue between the parties was whether the sale was “as is and not returnable and without price guarantee,” as plaintiff averred, or according to “sample,” as defendant asserted. The trial judge told the jury that plaintiff could not recover unless they found the contract *325 to be an “as is” contract. Their verdict for plaintiff, which was, as to this point, justified by the evidence, was, therefore, a finding that the sale was “as is and not returnable and without price guarantee;” and hence, unless defendant shows there was error in the admission or rejection of evidence, or some mistake in the manner of submitting that question to the jury, the judgment must be affirmed, since all other errors, if any, were harmless quoad the main point on which the verdict turned.

Viewed thus, the principal error alleged was that the trial judge submitted to the jury the determination of whether or not defendant was bound by a letter written on its behalf by one “B. Sherman.” On this question, the record showed that after a consultation between plaintiff’s Philadelphia representative and defendant’s general manager, plaintiff sent to defendant, on request from the latter, five tubes weighing half a pound each of thirty filament inferior rayon yarn. Defendant, in turn, sent it to a prospective customer, and the latter agreed to take 50,000 lbs. of it, at 60 cents a pound. Defendant then sent to plaintiff, at its home office in Cleveland, Ohio, a purchase order for the 50,000 lbs. at 55 cents a pound, to which plaintiff, through its sales manager, wrote to defendant an acceptance of the order, directed to the “Attention of M. A. Price,” defendant’s general manager, saying therein: “It is further understood that this product is sold ‘as is’ and not returnable and without price guarantee.” When the letter arrived at defendant’s place of business, the general manager was absent, and the reply to it was signed “Clifton Yarn Mills, Inc., Eayon Plant, B. Sherman.” It stated “The only change we wish to make in connection with your acknowledgment ik that you omitted specifying net weight ” The next day plaintiff wrote, agreeing to that change, and thus the contract upon which plaintiff relied was made.

Defendant contends, however, that “B. Sherman,” who signed the second of the above letters, had no authority *326 to act for defendant, and hence the contract relied on by plaintiff was not made, though the receipt of the 50,000 lbs. of inferior rayon yarn was admitted. This question was submitted to the jury, and their verdict in favor of plaintiff concludes this point also, if there was evidence justifying its submission. In addition to the fact that an answer, thus written and sent in the regular course of business, in reply to one sent to defendant, at its place of business, is presumed to have been written by authority of defendant, it further appeared that defendant’s general manager, when testifying as a witness for it, in his cross-examination answered as follows: “Q. Well, what is he [Mr. Sherman] supposed to do with letters that come in your absence? [as was the case here]. A. In this case, Mr. Sherman knew that the yarn was sold [by defendant to its customer] and in order to speed up the delivery from the Industrial [plaintiff] he answered the letter as he thought was right. Q. And that was a perfectly proper thing for him to do? A. Yes.” Moreover, in a later letter from defendant’s sales manager it is said “I understood fully that the yarn was inferior and sold ‘as is.’ Inasmuch as there was no guarantee on the yarn we accepted it ‘as is,’ and based the quality of the yarn on the original eight or ten [actually five] tubes that you submitted for approval.” This was the only point for which the letter signed by “B. Sherman” was important.

Worse still for the defendant, in its original affidavit of defense it expressly “admits writing and sending to plaintiff” that particular letter, and does not challenge Sherman’s authority in regard to it. True, in the supplemental (not substitute) affidavit of defense, such authority is denied, but this in no way affects the admission, for evidential purposes, of Sherman’s authority, as appearing in the original affidavit. See Heller v. Boyal Ins. Co., 151 Pa. 101. In view of these facts, it would have been grave error to refuse to allow the jury to determine whether or not Sherman had authority to write and *327 send the letter; and it would have been surprising indeed if the jury had not decided that he had authority so to do.

With these questions resolved in plaintiff’s favor, the assignments of error raise but one other point which needs consideration. Defendant, in one of its points for charge, asked the court to say that a sale “as is......refers simply to the condition of the goods and not to their quality,” and hence does not affect the question as to whether or not the “as is” sale was also to be according to a sample which had been submitted. The trial judge decided otherwise; but told the jury that if, as defendant alleged, plaintiff, in order to induce defendant to make the contract in suit, alleged the “goods were a reject of the coneing department......and the defendant purchased the yarn relying on that statement, and the statement was untrue because the delivered yarn was not a reject from the coneing department, then, even though it was an ‘as is’ contract, the defendant would have had a right to reject the goods, because while I said that ‘as is’ means you take the goods as is, that is subject to the doctrine that if there is an actual description or statement made of a fact, the purchaser has the right to rely on that statement or description, and in that case ......the goods must be within the description.” There is nothing in this of which defendant can justly complain, and the verdict in favor of plaintiff therefore determines that it made no false statement in regard to the yarn, and defendant’s sole remaining contention must be that the court erred in deciding that if the yarn delivered was inferior rayon, “sold ‘as is’ and not returnable and without price guarantee,” plaintiff had complied with its agreement.

Defendant correctly asserts in its brief: “The uncontradicted testimony is that there are only two standard grades of rayon yarn, first and second grade...... All rayon below these standard grades, down to waste, falls under the category of ‘inferior rayon.’ ” Defendant also *328 admits that the yarn it was to get was to be inferior rayon, and that it did get inferior rayon, but alleges that it was not of as high a quality as the five tubes which were sent to it before the contract was made. Perhaps, therefore, this complaint of defendant might be considered as having been answered by defendant itself, when it says in the letter of April 3,1931, written by the sales manager: “I understood fully that the yarn was inferior and sold ‘as is.’ Inasmuch as there was no guarantee on the yarn, we accepted it ‘as is’ and based the quality of the yarn on the eight or ten [actually five] tubes that you submitted for approval.”

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Bluebook (online)
165 A. 385, 310 Pa. 322, 1933 Pa. LEXIS 430, Counsel Stack Legal Research, https://law.counselstack.com/opinion/industrial-rayon-corp-v-clifton-yarn-mills-inc-pa-1932.