Sierra Diesel Injection Service, Inc. v. Burroughs Corporation, Inc.

Sierra Diesel Injection Service, Inc. (Sierra Diesel) is a family owned and operated business that services the fuel injection portions of diesel engines and sells related diesel engine parts. In September 1977, 19 year old Caroline Cathey, the daughter-in-law of the Sierra Diesel’s owner and operator James Cathey, worked as the company bookkeeper. She went to the Reno, Nevada branch office of the Burroughs Corporation (Burroughs) to purchase a posting machine to speed up Sierra Diesel’s invoicing and accounting. The salespeople at Burroughs told Caroline Cathey that Sierra Diesel should buy a B-80 computer (B-80) instead of a posting machine. Caroline and James Cathey attended a demonstration of the B-80 at the Burroughs office. After the demonstration, Burroughs’ sales staff sent a letter to Mr. Cathey which said that the B-80 “can put your inventory, receivables, and invoicing under complete control.” 1 The letter also informed Mr. Cath-ey that the information in the letter was “preliminary” and that “the order when issued shall constitute the only legally binding commitment of the parties.”

*111 In October 1977, Mr. Cathey decided to purchase the B-80. Sierra Diesel and…

concurring in part and dissenting in part:

I concur in much of Judge Stephens’ well-crafted opinion. Although the question is a close one for me, I agree that we must affirm the district court’s ruling that the written contracts were not integrated. My view is largely based on the standard of review; I cannot say that the district court clearly erred in finding that the parties did not intend the written contracts to be a complete and final expression of their agreement. For the reasons set forth by Judge Stephens, Sierra Diesel may therefore recover on its claim of express warranty.

I also agree that the lease agreements entered by Sierra Diesel were actually financing agreements, and did not abrogate the contracts between Sierra Diesel and Burroughs.

My disagreement with the majority concerns the question whether the disclaimers of implied warranties were conspicuous. On that issue, our standard of review is de novo. See Delhomme Industries Inc. v. Houston Beechcraft, 669 F.2d 1049, 1061 (5th Cir.1982). My own view of the contracts leads me to conclude that the clauses are conspicuous within the meaning of Nev.Rev.Stat. § 104.1201(10).

The software agreement is the clearest.…

890 F.2d 108 9 UCC Rep.Serv.2d 1236 SIERRA DIESEL INJECTION SERVICE, INC., Plaintiff-Appellee, v. BURROUGHS CORPORATION, INC., Defendant-Appellant. No. 87-2373. United States Court of Appeals, Ninth Circuit. Argued and Submitted April 14, 1988. Decided May 9, 1989. As Amended on Denial of Rehearing and Rehearing En Banc Nov. 16, 1989. 1 Michael F. Bailey and Lawrence G.D. Scarborough, Brown & Bain, P.A., Phoenix, Ariz., for defendant-appellant. 2 M. Craig Haase, Haase and Harris, Reno, Nev., for plaintiff-appellee. 3 Appeal from the United States District Court for the District of Nevada. 4 Before CANBY, * and BOOCHEVER, Circuit Judges, and STEPHENS ** , Senior District Judge. STEPHENS, Senior District Judge: 5 Sierra Diesel Injection Service, Inc. (Sierra Diesel) is a family owned and operated business that services the fuel injection portions of diesel engines and sells related diesel engine parts. In September 1977, 19 year old Caroline Cathey, the daughter-in-law of the Sierra Diesel's owner and operator James Cathey, worked as the company bookkeeper. She went to the Reno, Nevada branch office of the Burroughs Corporation (Burroughs) to purchase a posting machine to speed…