Gared Holdings, LLC v. Best Bolt Products, Inc.

991 N.E.2d 1005 · Indiana Court of Appeals · 2013

Facts

Gared, a basketball goal manufacturer, purchased pulleys from Best Bolt, a hardware distributor. The pulleys lacked a lubricated bushing, causing them to seize and fail in Gared's products. Gared sued Best Bolt for breach of contract and implied warranties, but the trial court ruled in Best Bolt's favor on all claims.

Issue

Did the trial court err in finding no breach of contract or implied warranty of fitness for a particular purpose? Did the trial court correctly determine that Best Bolt was not a 'merchant' for purposes of the implied warranty of merchantability?

Holding

The appellate court affirmed the trial court's findings regarding breach of contract and implied warranty of fitness for a particular purpose. However, it reversed and remanded on the implied warranty of merchantability, concluding that Best Bolt was indeed a merchant.

Rule

The implied warranty of fitness for a particular purpose requires the buyer's actual reliance on the seller's skill and judgment. The implied warranty of merchantability applies if the seller is a 'merchant with respect to goods of that kind,' which can include distributors making multiple sales or attempting to develop a new market.

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Case brief last reviewed 2026-04-18. Prepared by CaseReader from the published opinion.