ABSTRACT

An U.S. company (“Seller”) purchased from another U.S. company 40 500 pounds of frozen pork ribs which it immediately afterwords resold to a Canadian meat wholesaler (“Buyer”). Buyer, which had picked up the goods at the first supplier′s factory, entrusted a U.S. meat processor with the task of processing them. When receiving the goods the U.S. processor stated that they were in good condition with the exception of 21 boxes that had holes gouged in them. However, soon after it had begun processing the ribs, a United States Department of Agriculture inspector ordered it first to stop processing the ribs and finally to destroy them altogether due to their poor condition. As a consequence Buyer informed Seller that it was not willing to pay the price for the goods. At this point Seller, which had already paid its own supplier for the same goods, moved for summary judgment against Buyer for the payment of the price, arguing that Buyer had not given timely notice of the defects.