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reconsidered her actions of the day before and decided to accept the offer. She faxed a purchase order to Sean's Plastics which stated, in part:
reconsidered her actions of the day before and decided to accept the offer. She faxed a purchase order to Sean's Plastics which stated, in part: Regarding your offer of September 15, 1991. Please ship 1500 plastic handles at $5 each by September 26, 1991. This offer is subject to all of the terms and conditions set out below and supersedes all prior oral and written agreements. Among the terms and conditions of the purchase order was the following term: All disputes between the parties hereto shall be determined through arbitration in accordance with the rules of the American Arbitration Association. The fax was received by Sean's Plastics on the morning of September 16, 1991. The letter was not received until September 20, 1991. Sean's Plastics shipped 1500 handles on September 26, 1991 and Brenda accepted the handles on September 30, 1991. On October 15, 1991 Brenda informed Sean's Plastics of her claim that the handles were defective and refused to pay the purchase price. On November 15, Sean's Plastics sued Brenda for the purchase price of the handles. Brenda has requested that the court enforce the arbitration term in the purchase order. You are the judge. Write an opinion on the enforceability of the arbitration term. Question 4 30 minutes Manufacturing Corp. is engaged in the business of making and selling specialized machinery to the automotive industry. In its business, Manufacturing uses large quantities of steel. In July, 1991, Manufacturing entered into an agreement with Steel Co. under which Manufacturing agreed to buy rolled steel exclusively from Steel Co. and Steel agreed to provide Manufacturing a 10% discount from the price it charged its other customers. Steel agreed to the discount because it expected to sell large quantities of rolled steel to Manufacturing. In September, 1991 Manufacturing started using more plastic in making its product. The result of this change was to cut Manufacturing's needs for Steel in half. Since Manufacturing is now buying less steel, Steel Co. has refused to grant Manufacturing Co. the 10% discount. Manufacturing has refused to pay anything more than 90% of the amounts Steel claims it is owed. Steel has refused to ship steel to Manufacturing unless Manufacturing pays the 10%
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