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Fat Foods, Inc. telephoned four orders to Lean Machine Company to purchase Lean Machine's low-calorie sweetener. Lean Machine sent Fat Foods written confirmation of each
Fat Foods, Inc. telephoned four orders to Lean Machine Company to purchase Lean Machine's low-calorie sweetener. Lean Machine sent Fat Foods written confirmation of each oral order. Each written confirmation contained an arbitration clause requiring the parties to submit any disputes to arbitration rather than commence a lawsuit. Upon receipt of each written confirmation Fat Foods initialed the document as requested. Upon receipt of the confirmations Fat Foods objected to the inclusion of a clause by Lean Machine in the third and fourth confirmation that extended delivery to thirty days rather than fourteen days as contained in the first and second confirmations and, the delivery term was changed to suit Fat Foods. After receipt, Fat Foods discovered that the sweetener did not meet the contract specifications. Lean Machine disagreed and demanded that the dispute be submitted to arbitration for resolution. Fat Foods disagreed and brought this court action to stop the arbitration proceedings (seeking what is called an injunction ). The trial court judge ruled that the arbitration clause was not part of the agreement between the parties, in effect ruling in favor of Fat Foods. Lean Machine files an immediate appeal arguing that the trial judge was in error and the case lands on your desk as a Justice (judge) of the Appeals Court Was the trial court correct? Issue your ruling, in detail, your Honor.
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