The opinion of the court was delivered by: MCAVOY
FINDINGS OF FACT AND CONCLUSIONS OF LAW
On June 17 through 18, 1986, a bench trial was held in the above-captioned matter. On the basis of the evidence adduced at that trial as well as the applicable law, the Court, pursuant to Rule 52(a) of the Federal Rules of Civil Procedure, makes the following findings of fact and conclusions of law.
1. Plaintiff, John Deere. Industrial Equipment Company ("John Deere"), is a Delaware corporation with its principal place of business in Moline, Illinois.
2. Defendant, Triple Cities Equipment, Inc. ("TCE"), is a New York corporation with its principal place of business in Vestal, New York.
3. Defendant Carl J. Hughes, a resident of the State of New York, was at all times relevant to this action, the President of TCE.
4. Defendant Linda L. Hughes, a resident of the State of New York, was at all times relevant to this action, an officer of TCE.
5. In late 1966 and early 1967, John Deere and TCE. entered into a series of agreements whereby TCE became a franchisee of John Deere and agreed to buy from John Deere certain machinery and equipment for resale to retail customers. See Plaintiff's Exhibits 1 through 8.
6. On July 31, 1967, defendants Carl J. Hughes and Linda L. Hughes signed an agreement whereby they personally guaranteed all of the obligations of TCE to John Deere. See Plaintiff's Exhibit 30.
7. This guarantee and the agreements between TCE and John Deere were in full force and effect at all times relevant to this action.
8. In November and December of 1982, TCE sold several pieces of equipment to retail customers and failed to remit payment for those items to John Deere as required by the parties' agreement.
9. In April 1983, TCE's check, submitted as payment of amounts due and owing from TCE to John Deere under their agreement, was dishonored. Soon thereafter, the check was paid.
10. During the second week of May 1983, George DeClue, John Deere representative, discovered during his monthly inventory check that several pieces of TCE's equipment were out of inventory. In light of this, DeClue demanded ...