3. Formetal Engineering submitted to Presto a sample and specifications for precut polyurethane pads to be
used in making air-conditioning units. Formetal paid
for the goods as soon as they were delivered but
subsequently discovered that the pads did not con
form to the sample and specifications in that there
were incomplete cuts, color variances, and faulty
adherence to the pad's paper backing. Formetal then
informed Presto of the defects and notified Presto
that it would reject the pads and return them to
Presto, but they were not returned for 125 days.
Presto argued