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Sales Keyed to Keating
Belden Inc. v. American Electronic Components, Inc.
Citation:
885 N.E.2d 751 (2008)Facts
Since 1989, AEC purchased wire from Belden in repeated transactions for manufacturing automobile sensors. In 1996 and 1997, Belden sought to comply with AEC’s quality control program and provided detailed information indicating it would use insulation from Quantum Chemical Corp. Beginning in 1998, AEC sent purchase orders via fax that omitted the terms and conditions printed on the back of its forms. In June 2003, Belden began using insulation from Dow Chemical Company, which had different physical properties than Quantum insulation, without informing AEC. In October 2003, Belden sold AEC wire manufactured with Dow insulation. AEC used this wire in sensors, and the insulation cracked. Chrysler installed the sensors in approximately 18,000 vehicles, recalled 14,000, and repaired 4,000 prior to sale. AEC was required to reimburse Chrysler for recall expenses. Belden’s order acknowledgment contained boilerplate language on the back purporting to limit liability for consequential damages and stating acceptance was expressly conditional on buyer’s assent to those terms.
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