Ambassador Steel Co. v. Ewald Steel Co.
Michigan Court of Appeals
190 N.W.2d 276 (1971)
Relevant factsFree
Ambassador (plaintiff) sold steel to Ewald (defendant) that cracked when a third-party buyer welded it to railroad cars; Ewald argued the steel's carbon content fell below the standard for commercial-quality steel, breaching the implied warranty of merchantability, and sought a setoff for its resulting loss against Ambassador's breach-of-contract claim.
IssueFree
Whether, under the UCC, the implied warranty of merchantability applies to a transaction even if the seller is unaware of the buyer's intended purpose for the goods.