Opinion ID: 473693
Heading Depth: 2
Heading Rank: 2

Heading: Oakleaf

Text: 10 1. SX-330. The SX-330 hardware and software that Oakleaf sold to Reynolds and which Reynolds resold to Leson was not inherently defective. The district court, for the reasons discussed above, was not clearly erroneous in finding that Oakleaf did not breach any implied warranty. 11 The question whether Oakleaf breached its service contract is more difficult. Leson's real complaint was with Oakleaf's programming and servicing of the machines. The district court concluded that although Oakleaf's service was not excellent, it was not proved to be poor enough to result in breach of contract. Programming errors occurred with some frequency, but not an unusually large number in the course of an automobile dealer's business. Leson lost no clients as a result of the errors, which were repaired by Oakleaf. The district court was not clearly erroneous in finding that Oakleaf did not breach its service contract. 12 2. MP-16. The upgrading of the two SX-330 computers changed them into completely different machines, called MP-16's. Oakleaf was responsible for any defects in the new machines. 3 Leson complains that the machines were delivered late and were inherently defective. 13 Oakleaf concedes that it delivered the computers sixty days later than its representative had promised they would be delivered and that Leson experienced some sort of problems with the machines. Oakleaf disputes that the problems were caused by an inherent defect and argues that it was not given enough time to repair the machines. 14 These arguments are unpersuasive. Leson requested that Oakleaf duplicate the SX-330 program for use on the MP-16's. The evidence showed that there were programming errors in the MP-16 computers Oakleaf delivered. Oakleaf's request for more time was unreasonable. As the district court observed: 15 Oakleaf should have been thoroughly familiar with Leson's programming needs for its dealership, and the programming should have been accomplished with dispatch if the computers were free of defects. Leson was justified in rejecting the computers as defective.