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Great American Music MacHine, Inc. v. Mid-South Record Pressing Co. Case Brief
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Case Brief Summary & Legal Analysis
tl;dr: A record company sued a manufacturer for delivering defective albums. The court found a breach of warranty but rejected claims for lost profits from the speculative venture, instead awarding damages limited to the reasonable costs of rehabilitating the product’s launch after the breach.
Legal Significance: Establishes that for a new, speculative business venture, consequential damages for lost profits are unavailable if not proven with reasonable certainty. It provides an alternative damage measure under UCC § 2-714: expenses reasonably incurred to rehabilitate the product after the seller’s breach.
Great American Music MacHine, Inc. v. Mid-South Record Pressing Co. Law School Study Guide
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Case Facts & Court Holding
Key Facts & Case Background
Plaintiff Great American Music Machine, Inc. (GrAMM), a new corporation formed to promote an unknown artist, contracted with defendant Mid-South Record Pressing Co. to press 40,000 high-quality record albums. The defendant was aware of GrAMM’s promotional plan, which included a mass mailing and a potential public stock offering. The initial pressing of records was defective, being warped, pitted, and commercially unacceptable. Before GrAMM could halt distribution, thousands of defective albums were shipped to potential customers and distributors. The defendant subsequently re-pressed the order, and this second batch was of acceptable quality. GrAMM accepted the second pressing but refused to pay the contract price, suing for breach of warranty. GrAMM sought damages for its entire investment and for a failed $500,000 stock underwriting, which it alleged was caused by the defective initial pressing. Defendant counterclaimed for the contract price. Evidence at trial, including expert testimony, suggested the album had little to no market potential, regardless of pressing quality.
Court Holding & Legal Precedent
Issue: When a seller breaches a warranty by delivering defective goods to a new and speculative business venture, what is the proper measure of damages under the Uniform Commercial Code?
The defendant breached express and implied warranties, but the plaintiff is not Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu f
IRAC Legal Analysis
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IRAC (Issue, Rule, Analysis, Conclusion) is the exact format professors want to see in your exam answers. Our exclusive Flash-to-Full briefs combine holding, analysis, and rule statements formatted to match what A+ students produce in exams. These structured briefs help reinforce the essential legal reasoning patterns expected in law school.
Legal Issue
When a seller breaches a warranty by delivering defective goods to a new and speculative business venture, what is the proper measure of damages under the Uniform Commercial Code?
Conclusion
This case provides a key precedent for calculating damages under the UCC Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliq
Legal Rule
Under UCC § 2-714 and § 2-715, a buyer cannot recover speculative Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupid
Legal Analysis
The court first determined that the defendant breached its express promise of Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occa
Flash-to-Full Case Opinions
Flash Summary
- A new business suing for breach of contract cannot recover its