## Facts

- Ruby Dempsey purchased a nine-week-old male pedigree white poodle from George Rosenthal, doing business as American Kennels, for $541.25.
- The sales contract offered a full refund if, within two weeks, a licensed veterinarian certified the dog was “sick and unfit for purchase.”
- Five days after purchase, a veterinarian found the dog to be a unilateral cryptorchid (one undescended testicle), described as a congenital defect, while otherwise in good physical health.
- Dempsey sought a refund, asserting the dog was defective and unsuitable for breeding; the store refused.
- A later examination by another veterinarian confirmed only one descended testicle; Dempsey attempted to return the dog again and demanded a refund, which was refused.
- At trial, plaintiff’s veterinarians testified the condition was congenital and genetic; one testified fertility could be comparable to a normal dog but that the dog could not be a show dog.
- Defendant’s veterinarian testified that, on a later examination, both testicles were present in the scrotum.
- Dempsey sued in small claims, alleging breach of implied warranties under UCC §§ 2-314 and 2-315 and seeking return of the purchase price.

## Issues

1. Whether a pedigree poodle with unilateral cryptorchidism is unmerchantable under UCC § 2-314.
2. Whether the seller breached the implied warranty of fitness for a particular purpose under UCC § 2-315 based on plaintiff’s asserted breeding purpose and reliance on the seller.
3. Whether the buyer’s opportunity to inspect barred warranty claims under UCC § 2-316(3)(b).
4. Whether the buyer could revoke acceptance under UCC § 2-608 and recover the purchase price.

## Decision

- The court found a breach of the implied warranty of merchantability under UCC § 2-314.
- The court found a breach of the implied warranty of fitness for a particular purpose under UCC § 2-315.
- The court held the buyer’s opportunity to inspect did not defeat the warranty claims because detecting cryptorchidism in a young puppy requires specialized examination beyond a typical consumer.
- The court held the defect substantially impaired the dog’s value to the buyer and that revocation was timely under UCC § 2-608.
- Judgment was entered for the plaintiff for $541.25 (the full purchase price).

## Legal Principles

- A retail seller that is a merchant with respect to the goods sold impliedly warrants merchantability under UCC § 2-314 unless effectively excluded or modified.
- For pedigree animals, “merchantability” may turn on whether the animal would pass without objection in the relevant trade, including breeding and show expectations, not solely general physical health.
- An implied warranty of fitness for a particular purpose arises under UCC § 2-315 when the seller has reason to know the buyer’s specific purpose and the buyer relies on the seller’s skill or judgment.
- A buyer’s opportunity to inspect does not bar warranty claims for defects not reasonably discoverable through ordinary consumer inspection, particularly where discovery requires professional evaluation.
- Revocation of acceptance is available under UCC § 2-608 when a nonconformity substantially impairs value to the buyer and revocation occurs within a reasonable time after discovery.

## Conclusion

The court held that selling a pedigree poodle with a congenital undescended testicle breached implied warranties of merchantability and fitness for breeding purposes, and it allowed the buyer to revoke acceptance and recover the full purchase price.


Dempsey v. Rosenthal, 468 N.Y.S.2d 441 (N.Y. Civ. Ct. 1983)