Reference no: EM131654624

Facts: Byblos sold off-price designer clothing manufactured by an Italian parent company. Morris & Sons was a Chicago retailer that had been selling men’s and women's clothing for 40 years. Aaron Krichevsky, the president of Morris, contacted Patricia Saracini, the sales manager for Byblos, to discuss buying some Byblos clothing. He stated that he wanted only first-quality merchandise in good condition–no samples or damaged goods. She agreed to send such items. He further described the kinds of clothing Morris required. The parties agreed that Byblos's sales representatives would select merchandise for Morris and ship it, sight unseen, for approval or rejection. Over a three-year period, Byblos made about 14 shipments to Morris, with each shipment containing from 10 to 400 articles of clothing. Each shipment contained an invoice, ranging from $1,000 to $12,000.

Morris sold some but not all of the clothing. Krichevsky testified that many of the goods were defective. For example, some of the adult sweaters had an opening large enough only for an infant's head. Nonetheless, Morris continued to accept the shipments, and to sell what items it could. After the final shipment, Morris still owed about $111,000, which it refused to pay because of the alleged defects. Byblos sued.

Issue: Were the clothes non-conforming? Was Morris’s rejection of the goods effective?

Holding: Judgment for Byblos.