The Plaintiff,Donald Laird Has a Bachelor of Science Degree in Animal

question 3

Essay

The plaintiff,Donald Laird has a bachelor of science degree in animal science,had previously been employed at the university's swine research center,had managed a feed mill,had been employed as a herdsman for Hog Breeders,Incorporated,had worked for five years for Armour & Company at its feeder pig operations,and was a branch manager of the Scribner Co-op,Inc.for 14 years.Laird's assistant manager while at the Co-op was Gary Ruwe.When Laird quit the Co-op,Ruwe became the manager.Later,Laird went to Co-op to purchase some feed ingredients for his hogs.In speaking with Ruwe,Laird learned that the Co-op grain bin was not operating properly and therefore the corn was not drying properly.If the corn does not dry properly,it can collect mold and insects.Laird said he would take 1300 bushels of corn if Ruwe could pull the corn out of the middle of the grain bin.The corn was delivered to Laird where he noticed some damaged corn and an odor that indicated that the corn may have mold.Laird did not reject the shipment,however.Laird then began to feed the corn to his hogs.The boars began to develop pneumonia,began vomiting,and would not eat regularly.When it was time for the sows to farrow,the sows had an abnormally high number of miscarriages and stillborns.The ultimate conclusion was that the corn delivered was tainted with vomitoxins,a toxic substance that made the corn unmarketable as feed.Laird sued the Co-op for breach of the implied warranties of fitness for a particular purpose and merchantability.In order to recover under the warranty of fitness for a particular purpose what does Laird have to prove? What is the implied warranty of merchantability? Does Laird have a successful claim with this warranty?

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Definitions:

Bonds Payable

Long-term liabilities representing money a company owes to bondholders, to be repaid at a future date.

Discount on Bonds Payable

The variance between the face value of a bond and the amount it is sold for when the sale price is beneath its face value.

Date of Issue

The date on which a financial instrument, such as a bond or stock, is made available for sale or issued.

Redemption

The process of paying off or buying back securities or debts by the issuer before their maturity date, often at a predetermined price.