Law for Business 10th Edition by James Barnes,Terry Dworkin,Eric Richards

Exercise 9

Parzek purchased from New England Log Homes a log home kit consisting of handpeeled logs, window frames, and door frames. The brochure that Parzek had seen before buying the log home kit contained a statement that the logs were treated with a preservative "to protect the treated wood against decay, stain, termites, and other insects." Other statements indicated the maintenance-free nature of the logs, and there was a guarantee against any materials and engineering defects. The logs were delivered in May 1974 to the construction site, where they were stored in stacks covered by heavy tarpaulins. By fall of 1976, the walls were erected and the roof was on. In 1979, Parzek discovered 15 medium-sized blue metallic beetles on the interior walls of the home. He was assured by the dealer for New England Log Homes that the problem was not serious. The following April, however, Parzek observed hundreds of beetles and discovered larvae and "excavation channels" in the logs. When he contacted New England Log Homes, he was told that it did not guarantee that its logs were insect free. Parzek had the home treated by an exterminator and then brought suit against New England Log Homes. Relying on Section 2-725 of the Code, New England Log Homes contended that the lawsuit was barred by the statute of limitations because it was filed more than four years after the date of delivery. Was the lawsuit barred by the statute of limitations because it was filed more than four years after the date of delivery?