Midwest Mobile Diagnostic Imaging (MMDI) brought suit against Ellis & Watts (E&W), a division of Dynamics Corporation

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Midwest Mobile Diagnostic Imaging (MMDI) brought suit against Ellis & Watts (E&W), a division of Dynamics Corporation of America, for breach of contract. The dispute arose when E&W delivered the first of four trailers equipped with magnetic resonance imaging (MRI) scanners that E&W had agreed to deliver pursuant to a purchase agreement. E&W designs and manufactures trailers for mobile medical uses. MMDI decided to buy the MRI scanners directly from the manufacturer, but it needed assistance from E&W. E&W needed to install the trailers subject to the manufacturer’s specifications and approval. MMDI entered into an agreement with E&W for four mobile MRI units. The manufacturer subsequently delivered the first scanner to E&W in September 1995. In November, MMDI paid E&W for the first trailer. The manufacturer then completed its testing of that trailer at the end of November. The first test found that the trailer complied with all technical specifications. A second test failed because it was a “road test,” meaning the MRI failed to meet requirements after the trailer was moved and parked. The problem was that the unit’s side walls flexed too much, causing unacceptable “ghosting” in the MRI scans. In December, E&W installed a reinforcing brace that solved the wall-flexing problem and satisfied all of the manufacturer’s specifications. Consequently, MMDI refused to accept the trailer with the brace and demanded that E&W return the full purchase price. MMDI filed suit, seeking damages. Should MMDI prevail?

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Dynamic Business Law

ISBN: 9781260247893

5th Edition

Authors: Nancy Kubasek, M. Neil Browne, Daniel Herron, Lucien Dhooge, Linda Barkacs

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