Implied Warranties Business Scenario

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Read Business Scenario 23-4, “Implied Warranties,” located on page 437 of your course textbook. Explain whether Tandy can recover the purchase price, notwithstanding the warranty disclaimer in the contract. Your post should be at least 100 words in length.

23–4. Implied Warranties. Peter and Tanya Rothing operated Diamond R Stables near Belgrade, Montana, where they bred, trained, and sold horses. Arnold Kallestad owned a ranch in Gallatin County, Montana, where he grew hay and grain, and raised Red Angus cattle. For more than twenty years, Kallestad had sold between three hundred and one thousand tons of hay annually, sometimes advertising it for sale in the Bozeman Daily Chronicle. In 2001, the Rothings bought hay from Kallestad for $90 a ton. They received deliv- ery on April 23. In less than two weeks, at least nine of the Rothings’ horses exhibited symptoms of poisoning that was diagnosed as botulism. Before the outbreak was over, nine- teen animals had died. Robert Whitlock, associate professor of medicine and the director of the Botulism Laboratory at the University of Pennsylvania, concluded that Kallestad’s hay was the source. The Rothings filed a suit in a Montana state court against Kallestad, claiming, in part, breach of the implied warranty of merchantability. Kallestad asked the court to dismiss this claim on the ground that, if botulism had been present, it had been in no way foreseeable. Should the court grant this request? Why or why not? [Rothing v. Kallestad, 337 Mont. 193, 159 P.3d 222 (2007)] (See Implied Warranties.)

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