POSNER, Circuit Judge.
Casio, the U.S. distributor of watches manufactured by its Japanese parent, sued SM & R, which sells watches at retail. The suit was for $38,235, representing the unpaid balance of watches that Casio had sold and delivered to SM & R. Casio obtained judgment for that amount after a bench trial and SM & R has appealed, claiming that the watches it has not paid for are watches it was contractually entitled to return to Casio for a credit...
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