Connecticut Investment Casting Corp. v. Made-Rite Tool Co.

Brief Fact Summary.

Connecticut Investment Casting Corp. appealed a trial court judgment that barred recovery for both Connecticut Investment Casting Corp. and Made-Rite Tool Co.

Synopsis of Rule of Law.

Under the Uniform Commercial Code, a buyer is required to notify the seller of his rejection or revocation of goods within a reasonable time.

Facts.

Made-Rite Tool Co. (MR) hired Connecticut Investment Casting Corp. (Casting) to make barrel latches. Casting was supposed to ship 1,600 latches by January 27th, but Casting only shipped 74 latches by that date. MR lost the project because MR did not meet the final deadline. Casting nevertheless shipped the remainder of the latches over the next four months. Casting sued MR when MR did not pay Casting for the latches. MR filed a counterclaim against Casting for causing MR to lose the project. The trial court ruled that neither party was entitled to recovery.

Issue.

Whether a buyer is required to notify the seller of his rejection or revocation of goods within a reasonable time?

Held.

Yes. The judgment of the trial court is reversed in part. Casting is entitled to full price for the latches because MR inspected the latches and never told Casting that they were rejecting the latches.

Discussion.

Under the Uniform Commercial Code, a buyer is required to notify the seller of his rejection or revocation of goods within a reasonable time. A buyer who had an opportunity to inspect the goods but did not give a timely notice of rejection has accepted the goods.