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Commercial Law Keyed to Zierdt, 1st Ed.
General Trading International, Inc. v. Wal-Mart Stores, Inc.
Citation:
320 F.3d 831 (2003)Facts
In February 1999, Wal-Mart began negotiating with GTI for the purchase of 250,000 vine reindeer for the 1999 Christmas season. In March 1999, GTI executed Wal-Mart’s standard vendor agreement, which required any changes to be in writing. By mid-August 1999, Wal-Mart discovered quality issues with the reindeer, describing them as “moldy, broken grapevines” and “scary-looking.” On September 13, 1999, Wal-Mart directed GTI to cancel further shipments. At a September 23 meeting, Wal-Mart agreed to accept already-manufactured reindeer at a lower price and requested to withhold $400,000 for potential defective merchandise claims. Wal-Mart claimed GTI also orally agreed to a $200,000 reduction for price markdowns due to poor quality.
On September 30, Wal-Mart’s buyer sent an email stating she would “change the reserve on the account to $600,000.” In subsequent communications, Wal-Mart claimed $200,000 was for markdowns and $400,000 for defective merchandise claims. GTI consistently demanded payment of outstanding invoices and only acknowledged the $400,000 reserve for defective merchandise. GTI sued Wal-Mart for the unpaid balance of $395,684.17, and the court granted partial summary judgment to GTI for the $200,000 markdown amount, finding the alleged oral agreement unenforceable under the statute of frauds.
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