Anderson v. Sheehan-Bartling, Inc.
Anderson v. Sheehan-Bartling, Inc.
Opinion of the Court
The contract entered into between plaintiff Alton G. Anderson and defendant Sheehan-Bartling, Inc., was in the form of a written order executed by plaintiff and accepted by the defendant. The order for two motor scrapers described as Michigan Models 110 was prepared on July 7, 1958, but not then executed. Payment was to be made by the acceptance of two scrapers owned by the plaintiff at ihe agreed value of $9,500 and by the delivery of bankable paper for the balance.
Plaintiff and a salesman for defendant company went to Benton Harbor, Michigan, where plaintiff at the factory inspected and operated a Michigan Model 110. On their return they were met at the airport in Sioux Falls by Art Bartling, vice president of the defendant company, and there was discussion with reference to the signing of the purchase order. The words “These .machines must prove satisfactory for 10 days” were inserted in the .order. The date of the
Plaintiff instituted this action to recover the value of the trade-ins alleging that defendant converted such property on its own use. Defendant counterclaimed seeking to recover $45,882.28, the balance of the purchase price of the two Michigan Model 110' scrapers. The case was submitted to the jury which found for the plaintiff.
Counsel for defendant assert that the questions presented by the assignments of error are:
“1. Did the phrase in the contract that ‘These machines must prove satisfactory for 10 days, mean that they must be satisfactory to the respondent and that the respondent had the sole and arbitrary right to determine if they were satisfactory, or does it mean that the machines must be satisfactory for the purposes intended as determined by the reasonable man standard?”
“2. Is the respondent estopped from now claiming that he had the sole and arbitrary right to determine and declare the machines to be unsatisfactory? ”
The term “satisfactory” in contracts containing provisions of the character under consideration; without designating the person, as stated by this Court in Janssen v. Muller, 38 S.D. 611, 162 N.W. 393, and Reedy v. Davidson, 58 S.D. 274, 235 N.W. 710, means satisfactory to the promisor or purchaser. To the same effect are Manning v. School District, 124 Wis. 84, 102 N.W. 356; Campbell Printing-Press Co. v. Thorp, C.C., 36 F. 414, 1 L.R.A. 645; Singerly
These contracts for performance to the satisfaction of a party are ordinarily divided into two classes: (1) Where the fancy, taste, sensibility, or judgment of the promisor are involved; and (2) where the question is merely one of operative fitness or mechanical utility. 17 C.J.S. Contracts § 495a.
In Reedy v. Davidson, supra, [58 S.D. 274, 235 N.W. 711] this court considered a contract giving the buyer the right to cancel an order for purchase of an automobile if “changed price is not satisfactory” to him. This came within the first class of contracts above referred to. Hence the rule that where fancy, taste or judgment is involved, the promisor is the sole judge of bis satisfaction applied without regard to the reasonableness of his decision. 17 C.J.S. Contracts § 495b. It is contended by defendant that under a contract such as we have in this case involving operative or mechanical fitness it is contemplated that performance shall be satisfactory or acceptable to the reasonable man. The decisions are not in complete accord, but by the weight of authority it is held that the same rule applies where operative fitness or mechanical utility is involved. 77 C.J.S. Sales § 196; Wood Reaping & Mowing Machine Co. v. Smith, 50 Mich. 565, 15 N.W. 906, 45 Am.Rep. 57; McCormick Harvesting-Machine
The law regards parties competent to contract as they see fit as to the satisfactory character of an article furnished and they assume the obligations and hazards of rendering performance according to the terms of their contract. Hall v. Webb, 66 Cal.App. 416, 226 P. 403: Shepherd v. Union Central Life Ins. Co., 5 Cir., 74 F.2d 180. Professor Williston, in his treatise on Contracts, Rev.E’d.. § 675A, speaking of decisions applying the standard of the reasonable man, states: “This is an arbitrary refusal by the court ■to enforce the contract that the parties made and seems unwarranted. Moreover, it involves a distinction that is almost impossible to make between contracts involving personal taste and those Which do not.” If there was no> bad faith and plaintiff was honestly dissatisfied, his determination was conclusive. It was not enough to show that he should have been satisfied and that his dissatisfaction was without reason.
Defendant contends that plaintiff having testified as to reasons for his dissatisfaction is estopped from claiming that the right of decision as to satisfaction was under the terms of the contract reserved in him. Plaintiff was entitled to try out the machines before reaching a decision. He testified that Art Bartling and a mechanic employed by the defendant company came to the job site where plaintiff was trying out the machines; that they agreed that “the machines were not working satisfactorily”; and that Mr. Bartling promised to return the scrapers that plaintiff had delivered to him. The testimony of the plaintiff on which defendant particularly relies and elicited on cross-examination was to the effect that the machines failed to work properly, especially so in slough areas, and that he would not have told the vendor to take them back if the machines worked properly.
The judgment appealed from is affirmed.
Dissenting Opinion
(dissenting).
I accept as a correct rule of law in this case the statement of the majority that “If there was no bad faith and plaintiff was honestly dissatisfied, his determination was conclusive.” That is another way of saying that “It is the fact of actual dissatisfaction that relieves him from paying for the article, and not the fact that he says that he is dissatisfied.” Garland v. Keeler, 15 N.D. 548, 108 N.W. 484, 485. However, it seems to me that the manner in which this case was tried does violence to that principle of law. Consequently, I dissent.
While the purchaser did not specifically plead his dissatisfaction the trial court treated the pleadings as raising this issue. It could not have been otherwise because under his evidence he had no other cause for complaint. With his dissatisfaction being an issue so too was its good faith. Wetter Bros. v. Otto, 179 Iowa 873, 162 N.W. 12. On this issue the purchaser need not establish his good faith. Rather, it is the burden of the seller to establish that the expressed dissatisfaction was in bad faith. Inman Mfg. Co. v. American Cereal Co., 133 Iowa 71, 110 N.W. 287, 8 L.R.A., N.S., 1140; Ard Dr. Pepper Bottling Co. v. Dr. Pepper Co., 5 Cir., 202 F2d-372.
On the trial plaintiff in putting in his case testified as as to the basis for his dissatisfaction. In so doing he described
In submitting the case the trial court in its Instruction 3 told the jury:
“* * * that under the provisions of the agreement for the purchase of the Michigan Model 110* Scrapers wherein it was stated, ‘These machines must prove satisfactory for ten days,’ means that the plaintiff, being the purchaser, must be satisfied with the sc'rapers sold to him and that under the holding of our Supreme Court in Reedy vs. Davidson, 58 South Dakota Reports, Page 274 at Page 277 [235 N.W. 710, at page 711], wherein it is stated, ‘An agreement providing that an article to be furnished shall be satisfactory to the party to whom it is to be supplied means that the party has reserved to- himself an unqualified option, and is not willing to leave his freedom of choice to any contention or to be subject to any investigation whatever, and the party’s own determination is final and conclusive,’ and means that the plaintiff, claiming that he is not satisfied, is entitled to have his machines returned to him and to have the agreement cancelled.”
The giving of this instruction is assigned and urged as error on this appeal. While appellant’s brief does not discuss this assignment with any degree of precision, I do not feel that such failure constitutes a waiver of the objection.
On the settlement of the instructions defendant excepted to this one for several reasons, some of which were without merit. However, it did include the -ground that plaintiff’s dissatisfaction “could not be an arbitrary statement on his
On the question of the good faith of the purchaser’s dissatisfaction in1 cases involving this provision in contracts there seems to be a difference in the rule applied depending on whether the contract involves a question of individual taste or sentiment rather than utility. 17 C.J.S. Contracts § 495d; 46- Am.J-ur., Sales, § 500; 12 Am.Jur., Contracts, § 341. In cases where the contract falls into the first category the good faith of the expressed dissatisfaction cannot be inquired into-. The Reedy case was of this type. However, in cases of contracts óf the second category' this matter is open to investigation. See also the principal authority of the Reedy case, Baltimore & O. R. Co. v. Brydon, 65 Md. 198, 3 A. 306, The present case is of this class. Accordingly, I feel that Instruction 3 was improper and prejudicial to the defendant.
I would reverse.
Reference
- Full Case Name
- ANDERSON, Respondent v. SHEEHAN-BARTLING, INC., Appellant
- Cited By
- 4 cases
- Status
- Published