Home shopping operator A received a genuine judgment on sneakers from luxury appraisal agency B, but was later found to be counterfeit by the Trade Commission and ordered to stop importing and selling. A filed a lawsuit against B for twice the price of the goods according to the contract terms. The first and second trials did not recognize B's compensation liability, saying that distribution channels should also be considered, but the Supreme Court ruled that B had contractual compensation liability because there was an official determination that the sneakers were substantially different in quality from genuine products. The Supreme Court said that the purpose and intent of the contract must be comprehensively considered, and interpreted the contract as one in which the appraisal agency guarantees damages if the appraised product is found to be not a "genuine product with the same quality as a genuine product".
