Uploaded April 2025 | Updated September 2026, 2 weeks ago
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Allied Grape Growers v. Bronco Wine Company
California Court of Appeal
203 Cal. App. 3d 432 (1988)
Under the uniform commercial code or UCC, if a buyer breaches the party's contract, the seller has the right to resell the goods and recover damages, provided the resale is commercially reasonable.
We consider the meaning of commercially reasonable in Allied Grape Growers versus Bronco Wine Company.
Allied Grape Growers, a cooperative of grape farmers, supplied grapes for wine production.
Bronco Wine Company processed grapes into wine.
Bronco executed a written contract to purchase thirty thousand tons of grapes annually from Allied. Bronco also orally agreed to purchase a specialty grape crop from Allied. The following year, Bronco complained that the grapes Allied delivered were below its quality standards.
In several instances, Bronco either refused to accept the grapes or paid below the contracted rate. As to the specialty grapes, Bronco accepted and paid for one delivery but rejected the rest. Despite Allied's best efforts to work with Bronco, Bronco ultimately repudiated the party's contract.
When Allied couldn't find another buyer, it formed a subsidiary corporation to purchase the grapes. At that time, the grapes market value was one hundred dollars per ton.
However, the value of the grapes to the subsidiary was only seventy dollars per ton. To minimize damages, the thirty dollar loss was split between the farmers and the subsidiary, with each absorbing a fifteen dollar per ton loss.
Allied brought suit against Bronco for breach of the party's written and oral contracts.
A jury awarded Allied over three million dollars in damages.
Bronco appealed, arguing that the oral contract was unenforceable under California's statute of frauds and that Allied's resale to its subsidiary was commercially unreasonable under California's UCC.
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Get more case briefs explained with Quimbee. Quimbee has over 42,700 case briefs (and counting) keyed to 988 casebooks ► quimbee.com/case-briefs-overview
Allied Grape Growers v. Bronco Wine Company
California Court of Appeal
203 Cal. App. 3d 432 (1988)
Under the uniform commercial code or UCC, if a buyer breaches the party's contract, the seller has the right to resell the goods and recover damages, provided the resale is commercially reasonable.
We consider the meaning of commercially reasonable in Allied Grape Growers versus Bronco Wine Company.
Allied Grape Growers, a cooperative of grape farmers, supplied grapes for wine production.
Bronco Wine Company processed grapes into wine.
Bronco executed a written contract to purchase thirty thousand tons of grapes annually from Allied. Bronco also orally agreed to purchase a specialty grape crop from Allied. The following year, Bronco complained that the grapes Allied delivered were below its quality standards.
In several instances, Bronco either refused to accept the grapes or paid below the contracted rate. As to the specialty grapes, Bronco accepted and paid for one delivery but rejected the rest. Despite Allied's best efforts to work with Bronco, Bronco ultimately repudiated the party's contract.
When Allied couldn't find another buyer, it formed a subsidiary corporation to purchase the grapes. At that time, the grapes market value was one hundred dollars per ton.
However, the value of the grapes to the subsidiary was only seventy dollars per ton. To minimize damages, the thirty dollar loss was split between the farmers and the subsidiary, with each absorbing a fifteen dollar per ton loss.
Allied brought suit against Bronco for breach of the party's written and oral contracts.
A jury awarded Allied over three million dollars in damages.
Bronco appealed, arguing that the oral contract was unenforceable under California's statute of frauds and that Allied's resale to its subsidiary was commercially unreasonable under California's UCC.
Want more details on this case? Get the rule of law, issues, holding and reasonings, and more case facts here: quimbee.com/cases/allied-grape-growers-v-bronco-wine-company
The Quimbee App features over 42,700 case briefs keyed to 988 casebooks. Try it free for 7 days! ► quimbee.com/case-briefs-overview
Have Questions about this Case? Submit your questions and get answers from a real attorney here: quimbee.com/cases/allied-grape-growers-v-bronco-wine-company
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