Franklin Computer Corp. v. Wolsten's Projector House, Inc. (In Re Franklin Computer Corp.)

OPINION

EMIL F. GOLDHABER, Chief Judge:

The first of two issues presented in this opinion is whether prepetition debts may be setoff against postpetition obligations. The second point for decision is whether there is a breach of an implied warranty of merchantability when a computer is billed as compatible with the software of a competitor although, in fact, it cannot operate some of the competitor’s software programs. For the reasons outlined herein, we conclude on the first issue that the prepetition setoff is not allowable, and on the second issue we hold that there has been inadequate proof…