Assignment task: While constructing a new waterfront restaurant in San Diego, Kohn Restaurants Group, Inc. ("Kohn") entered a valid written contract with SD Flooring, Inc. to purchase sandstone colored TileX brand vinyl ?oor tiles for $40,000, to be delivered in three weeks. The day after the contract was signed, SD Flooring called Kohn and orally offered to install the tiles during the week following delivery, for $15 ,000, which offer was immediately accepted by Kohn.
Two weeks later, SD Flooring called Kohn again and told her that it was buying a new, superior ?oor cleaning machine and that it would like to use this new machine to clean the vinyl ?oors once a week for one year, in return for $5,000. Eager to have a professional company take care of the cleaning, Kohn again immediately accepted the cleaning offer. Kohn paid $60,000 for the tiles, the installation, and the year of cleaning.
SD Flooring delivered all the tiles to the restaurant on the scheduled delivery date. Although the tiles were visually identical to the TileX brand beige tiles, they were actually Delta brand, a more expensive and higher quality vinyl tile than TileX's.
Later that evening, SD Flooring sent Kohn an email that stated: "We assume you are delighted by our substituting the much better Delta tiles for your order. We have arranged for and paid Tile Pros, Inc.. who is an independent contractor flooring installer, to install your vinyl tiles this week. Also, the manufacturer of the new machine to clean the vinyl ?oors has just today permanently ceased all production and canceled our machine order due to a design defect, so we will not be cleaning your floors this year and will refund your $5,000 immediately."
You are the COO of Kohn's and are tasked with assessing (using your layperson understanding of the law) the best path forward for the company and to prepare a memo to the Board of Directors analyzing the following:
1. What are Kohn's rights and remedies, if any, with regard to getting the wrong brand of tiles from SD Flooring? Discuss.