Amf, Inc. v. Mcdonald's Corp.

536 F.2d 1167 (1976)

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Nature of the Case

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Facts

AMF (P) sold computerized cash registers and developed a new unit in breadboard and used that unit to Beta site at a McDonald's (D) restaurant. P sold the unit to D for $20,000. The unit was installed in April of 1968, and paid for on January 3, 1969. On August 29, 1968, D ordered 16 more units. D ordered 7 more units in late January 1969. The Beta unit caused many problems in actual operation and it was ordered to be removed in late April 1969. The remaining ordered units were supposed to be delivered and installed from February until June 1969. That was pushed back by P to January 1970. A March 18, 1969 meeting resulted in D's request to formulate performance standards for the units and pending mutual agreement on the performance standards D wanted to hold up production of the 23 units. P agreed. The standards were presented on May 1st, and the parties could not agree. D canceled the orders because P could never produce a working unit. P sued D and D won the verdict under 2-609, 2-610, and 2-711. P appealed.