Apollo Group, Inc. v. Avnet, Inc.

“We are told that Contract, like God, is dead.” 1 In this computer age case, we learn that Contract, at least, is very much alive and well in the Ninth Circuit.

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Apollo Group, Inc. (“Apollo”) purchased software from Oracle Corporation (“Oracle”), a software vendor. Apollo’s purchase included both a database system and Oracle Finan-cials, an accounting software package. Apollo then sought to purchase an appropriate computer system to run the software. To this end, Apollo contacted Avnet, Inc. (“Av-net”), a distributor of Digital Equipment Corporation computer products.

In early May 1989, representatives of Apollo, Avnet, and Oracle met to discuss the potential sale of computer hardware to Apollo. The content of this meeting is disputed. According to Apollo, Avnet assured Apollo that it was familiar with the Oracle software and could design an appropriate hardware system. In contrast, Avnet contends that it “could not and did not represent that it had any expertise in assessing the hardware requirements for the Oracle financial software.”

Following their meeting, on May 11, Avnet submitted to Apollo, in writing, a price quote for a Micro VAX 3800. In an attached cover letter…