Betaco, Inc. v. Cessna Aircraft Co.

103 F.3d 1281 (7th Cir. 1996)

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Nature of the Case

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Facts

Betaco (P) put a down payment on a new jet with Cessna (D) on the basis that the new jet would be faster, more efficient, and have more range than the jet they currently owned. P got a brochure and a sales letter from D proclaiming the new jet's attributes. P signed a purchase agreement that contained a read and understand clause and a detailed explanation of warranties (see Calamari 3rd page 310). P paid $150,000 and then discovered that the new jet would not have a greater range and decided to cancel the order. D refused to return the deposit. P sued in diversity for an express breach of warranty. The court ruled against D's claim that the purchase agreement was a fully integrated document. P got to enter cover letter representations of the jets range. P eventually got the jury verdict under the express warranty theory and got the judgment. D appealed. In that appeal, the court vacated the award damages and remanded for the purpose of a hearing on whether the parties intended to the purchase agreement they signed to be a complete embodiment of their contract. The district court said no and D appealed.