General Foods Corporation v. Valley Lea Dairies, Inc. And Lyons Creamery Cooperative Association

The risk that a dairy product will contain salmonella is one of the constants of the business. The risk will vary with the care the participants in the process take. The contract in this ease required the sellers (collectively Valley Lea) to take scrupulous care when processing the milk. In order to protect itself from a number of risks — the risk that Valley Lea would fail to take the necessary precautions, the risk that some contamination would enter the milk in the drying process, and the risk that milk would become contaminated en route— General Foods tested the dry milk before using it.…