Friday, November 29, 2013

AMF, Inc. v. McDonald’s Corp. case brief

AMF, Inc. v. McDonald’s Corp. case brief summary
536 F.2d 1167 (1976)


CASE SYNOPSIS
Appellant cash register company sought review of a decision by the United States District Court for the Northern District of Illinois, which dismissed appellant's complaints against appellee restaurant chain regarding a contract for the purchase of cash registers.

CASE FACTS
Appellant cash register company sought review of a decision, which dismissed appellant's complaints against appellee restaurant chain regarding a contract for the purchase of cash registers.

DISCUSSION

  • The court affirmed and held that appellee had entered into contracts for 23 cash registers, but that appellant was not able to perform its obligations under the contracts. 
  • The court concluded that under U.C.C. § 2-610, appellee justifiably repudiated the contracts to purchase all 23 cash registers. 
  • The court found that appellee was warranted in repudiating the contracts and, therefore, had a right to cancel the orders by virtue of U.C.C. § 2-711.

CONCLUSION
The court affirmed the dismissal of an action by appellant cash register company against appellee restaurant chain because appellee justifiably repudiated the contract for cash registers as appellant could not perform under the contract.

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