Frigaliment Importing Co., a Swiss corporation, contracted on May 2, 1957, with B.N.S. International Sales Corp., a New York sales corporation, for the sale of US Fresh Frozen Chicken, Grade A, Government Inspected, Eviscerated. The first contract required 75,000 lbs. of 2½-3 lbs. birds at $33.00 per 100 lbs. and 25,000 lbs. of 1½-2 lbs. birds at $36.50 per 100 lbs., scheduled for May 10 shipment FAS New York. The second contract called for 50,000 lbs. of the heavier birds and 25,000 lbs. of the lighter at $37.00 per 100 lbs., scheduled for May 30.
Negotiations were conducted in New York between defendant's secretary Ernest R. Bauer and Mr. Stovicek, who was in New York for the Czechoslovak government. A cable from plaintiff dated April 26, 1957, announced they were buyers of 25,000 lbs. of chicken 2½-3 lbs. weight at a price up to 33 cents per pound for shipment on May 10. Bauer accepted after testing the market, and Stovicek sent a confirmation that evening, with subsequent cables using the English word "chicken" despite being predominantly in German.
The initial shipment under the first contract arrived in Switzerland on May 28, revealing that the 2½-3 lbs. birds were stewing chicken or fowl, with many cartons so labeled. Protests followed, but the second shipment of similar larger birds was made on May 29 and stopped by defendant at Rotterdam. This action for breach of warranty ensued in the United States District Court for the Southern District of New York.
Plaintiff offered testimony from trade witnesses asserting that "chicken" meant broilers and fryers, along with market reports distinguishing chicken from fowl. Defendant presented witnesses stating that chicken encompasses all classifications and pointed to Department of Agriculture regulations listing the classes including hen or stewing chicken or fowl.
After the first shipment, plaintiff sent cables on May 28 complaining the larger birds constituted fowl, and defendant responded refusing to recognize the objection while offering to ship the second contract goods. Plaintiff confirmed shipment on May 29 while insisting the merchandise must be as per contract.
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