Jorgensen v. Pressnall
Oregon Supreme Court
545 P.2d 1382 (1976)
The Jorgensens (plaintiffs) bought a mobile home from Pressnall (defendant), who assured them it was of good, sound construction and that any factory defects would be promptly repaired; Pressnall then assigned the financing contract to Commercial Credit (defendant), warranting the contract's enforceability. After moving in, the Jorgensens discovered serious structural defects — wall cracks and plumbing leaks — which Pressnall's handymen repeatedly failed to fix over about two months. The Jorgensens ultimately rejected further repair attempts, returned the mobile home, and notified both Pressnall and Commercial Credit they were rescinding the sale; Commercial Credit then repossessed and sold the home at a loss. The Jorgensens sued for rescission and damages, Commercial Credit cross-claimed against Pressnall, and the trial court ruled against Pressnall on both claims; Pressnall appealed.
Whether, under the Uniform Commercial Code, a buyer may revoke acceptance of nonconforming goods when an uncured defect substantially impairs the goods' value to that particular buyer.