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

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

Facts

Gared Holdings, LLC, a manufacturer of basketball goal systems, contracted with Best Bolt, Products, Inc. to supply pulleys. The pulleys lacked lubricated bushings, causing them to seize up and fail, leading Gared to sue Best Bolt for breach of contract and implied warranties. The trial court ruled for Best Bolt on all claims, prompting Gared's appeal.

Issue

1) Did Best Bolt breach the contract or the implied warranty of fitness for a particular purpose? 2) Was Best Bolt a 'merchant' with respect to pulleys, making it subject to the implied warranty of merchantability, and if so, did it breach that warranty?

Holding

The appellate court affirmed the trial court's finding that Best Bolt did not breach the contract or the implied warranty of fitness for a particular purpose. However, the court reversed the finding that Best Bolt was not a 'merchant' and remanded the case for a determination of whether Best Bolt breached the implied warranty of merchantability.

Rule

For the implied warranty of fitness for a particular purpose, the buyer must prove actual reliance on the seller's skill and judgment. For the implied warranty of merchantability, a seller can be considered a 'merchant' if they deal in goods of that kind, even if they have only made a few sales, especially if they are willing to continue selling or sell related products.

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