Story Case

On January first, the Woolworth Ten-cent Store Company bought 200,000 wire coat hangers from the Chicago Wire-weaving Company. One year later, the Woolworth company brought suit against the wire company for breach of warranty. At the trial, it was proved that 10,000 complaints had come in from customers who declared that the coat hangers were not strong enough to support the ordinary garment. Will the Woolworth company win the suit?

Ruling Court Case. Randall Vs. New Son, Volume 2 Queen's Bench Division, Page 102

Randall bought of Newson, who was a carriage builder, a phaeton. At the time, it was fitted with shafts for only one horse, and Randall gave orders to Newson for a pole and splinter bar to be made and fitted to the vehicle. The phaeton was sent home with the pole and splinter bar. While Randall was driving it with two horses, the horses swerved and the pole broke at the carriage. The mishap caused great damage to the horses. Randall brings this action for the resulting damages. He contended that, although New-son made no express warranty, that there was an implied warranty that the pole was reasonably fit for the purpose for which it was made.

Mr. Justice Brett delivered the opinion of the court: "In the sale of an article for a specific purpose, there is a warranty by the seller that it is reasonably fit for the purpose, and that there is no exception as to latent undiscoverable defects." Judgment was given for Randall.

Ruling Law. Story Case Answer

We have established that the general rule is that the law will imply no warranty of quality when the buyer has failed to get an express warranty. There are some exceptions to this rule. If a buyer makes known to the seller the purpose for which the thing bought is to be used, and shows that he relies upon the skill and judgment of the seller in selecting it, there is an implied warranty by the seller that the thing sold is reasonably fit for the purpose for which it is bought. In the Story Case, the Woolworth company obviously will recover, even though nothing was expressly stated by the Chicago Wire Company as to the strength of the coat hangers. There is an implied warranty upon the sale, that the thing offered to the purchaser is reasonably suitable for its designed use.