Johnson v. John Deere Co.
South Dakota Supreme Court
306 N.W.2d 231 (1981)
Walter Johnson (plaintiff), an experienced mechanic turned farmer, bought a new tractor from John Deere Company (John Deere) (defendant) through dealer Nelson Implement, Inc. (Nelson) (defendant), signing a purchase-order form that disclaimed all warranties except a single repair-and-replacement warranty and excluded liability for incidental or consequential damages. The tractor - which the trial court itself called a "lemon" - repeatedly malfunctioned, requiring extensive repairs that left Johnson without its use for months at a time; Johnson sued for breach of warranty, but the trial court ruled for the defendants based on the warranty disclaimers, and Johnson appealed.
Whether, under the Uniform Commercial Code, a contract's damages limitation may still be enforceable even if the contract's remedy limitation is unenforceable.