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Contracts Keyed to Burton
Reilly Foam Corp. v. Rubbermaid Corp.
Citation:
206 F. Supp. 2d 643 (E.D.P.A. 2002)Facts
The plaintiff manufactures and sells custom sponges and other foam products, and the defendant manufactures home products, including mops, nationwide. Prior to forming an agreement with the plaintiff, the defendant obtained sponges from a competitor of the plaintiff called Tek Pak. IN 1997, the defendant came out with a new model of mop with wave patterned sponges, and Target stores agreed to stock them. Tek Pak could not make timely deliveries of the sponges to meet Target’s needs, so the defendant reached out to the plaintiff on March 4, 1999. The plaintiff returned a price quotation four days later and then went on to manufacture and deliver the sponges. The parties then began to discuss a longer-term agreement, after which the plaintiff sent a letter on March 26 to the defendant detailing the proposal made in the discussions, including a clause regarding the minimum purchase of 2 million sponges. The defendant sent back a letter serving as a commitment. New Knight, an independent corporation assembling mops on behalf of the defendant, was instructed to only buy sponges from the plaintiff, which it did until it went bankrupt. The defendant itself continued to purchase sponges from Tek Pak and did not meet the 2 million sponges stated in the letter.
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