Reference no: EM134032776

Question

Pong Golf Ball Co. is one of the largest manufacturers of quality golf balls in U.S. Recently, Pong introduced its new "Rocket" model golf ball. Pong has always been synonymous with excellence in golf balls. After learning about the new model and its limited first year production through Pong's promotional literature, Fuzzy, the resident golf professional at Shady Acres Country Club contracted to purchase 200 dozen "Rocket" model golf balls from Pong. A contract for sale was executed which contained the following paragraph: All warranties, expressed or implied, other than those hereinbefore contained are hereby disclaimed. Fuzzy sent a check to Pong for $5,000. for the new golf balls. After sending payment Fuzzy learned that the U.S. District Court issued a ruling in favor of Balding Sports Company in which the Court ruled that the "Rocket" model ball violated the patent rights of balding Company and their model ball, "The Cannon". The Court's order required Pong to discontinue manufacturing the "Rocket" model (referred to as a "cease and desist" order). Upon learning of this Fuzzy demanded that Pong return his check and Fuzzy informed Pong of his intent to refuse acceptance of the delivery of the 200 dozen "Rocket" model.