Question
ABC Company, which manufactures automobiles and is located in Connecticut, orders tires from XYZ company which is a tire manufacturer and located in Michigan. The
ABC Company, which manufactures automobiles and is located in Connecticut, orders tires from XYZ company which is a tire manufacturer and located in Michigan. The order email reads as follows: "We hereby order 1,000, 16" in diameter Goodyear tires for a price of $50 each delivered to our plant in East Hartford, CT on or before two weeks from the date of this order"
The XYZ Company website provides that any orders submitted will be governed the terms set forth therein and become part of any order agreement when XYZ ships the tires. Among other things, XYZ's terms provide that XYZ may reasonably modify any order and any reasonable modifications are binding on the ordering party.
Within 2-1/2 weeks, XYZ ships and within 3-1/2 weeks, ABC receives, 800 tires half of which were 16" and the other half 15" tires. The invoice reads as follows: "We have shipped your tires. 400, 16" tires at $50 each and 400, 15" tires at $45 each. We shipped all of the 16" tires we had in stock filled the remainder of the order with 15" tires. Payment of $38,000 is due within 10 days."
ABC only can use 16" tires and has no use for 15" tires. ABC writes back to XYZ saying that: (1) ABC will accept all of the 16" tires and pay for them; and (2) ABC demands that XYZ pick up the 15" tires and ABC will not pay for those tires or the shipping cost for return.XYZ writes back and refusing to pick up the 15" tires and demands payment in full from ABC.
ABC sues XYZ. Please discuss the claims ABC will make and the defenses XYZ will have.
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