QVC, Inc. v. MJC America, Ltd.

QVC (plaintiff) sold thousands of space heaters purchased from MJC (defendant) at a per-unit profit until defects causing smoking, sparking, and flames forced a recall; QVC sued to recover its purchase costs, shipping and return-processing costs, and lost profits on the recalled heaters, all under a purchase order expressly requiring MJC to refund costs and indemnify QVC for losses, including consequential damages, from defective merchandise.