Key legal question
Whether the notice of hidden defects in the printed flags was timely under Art. 370(3) OR.
Extracted holding
The defect notice of 7 and 12 February 2001 was late; the notice requirement was not met within the applicable period after discovery of the defects.
Extracted reasoning
The Federal Court was bound by the cantonal findings that the flags were intended for immediate use and that the defects were discovered about 14 days after receipt. A seven-day notice period is generally appropriate even where no further damage is feared, and no special circumstances justified a longer period.