Suggested Time to Complete: 30 minutes
Disputed Widgets — UCC 2-207 – SS26 OPTIONAL
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Please answer in IRAC format. You might have to think about Civil Procedure to get the answer completely correct.
Bob, a widget-seller, seeks to buy 100 widgets from Melanie, a widget-manufacturer, for $50,000. On Monday, Bob telephones Melanie: “I want to buy 100 widgets. $50,000.” Melanie states she can fill the order and requests a purchase order. On Tuesday Bob sends Melanie a purchase order stating on the front: “Buy 100 widgets, $50,000” and on the back: “Dispute Resolution: All disputes to be arbitrated in Cleveland, OH under rules of American Arbitration Association.” On Wednesday, Melanie mails an invoice back to Bob stating on the front: “100 widgets @ $50,000, FOB Lansing, MI” and on the back: “Dispute Resolution: All disputes will be heard before the Michigan District Court, Lansing, MI.” That same day, Melanie ships the widgets from her Lansing offices, and they are destroyed in transit. Melanie sues Bob for non-payment, arguing that the contract term “FOB Lansing, MI” required Bob to insure the shipment against losses in transit. Bob argues that provision was not part of the contract and attempts to institute arbitration proceedings pursuant to the term on his purchase order. Explain whether the arbitration term will be enforced, and why.
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No party can compel arbitration unless both parties have contracted to submit their disputes to arbitration.
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