This section contains the nature of the case and procedural background.

D contracted for plywood to be delivered to a specified standard that P was fully aware of. P wanted 20 carloads of the product delivered in installments. The first carload arrived and failed inspection. D canceled the contract. The second carload arrived, and the third was stopped in transit. After the cancellation, the parties agreed to an inspection. The first shipment was defective as claimed but the second shipment was within the specification tolerance. D paid for the first carload but refused any others. D did not take a deduction for the variance. P sued to recover damages from D's breach. The verdict went to P and D appealed; the trial court was ambiguous in determining that the breach in thickness in the first car constituted a material breach and entitled D to request assurance that future shipments would conform and then granting judgment to P.

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