Question: Buyer makes gumball machines. Seller makes mechanical coin sorters of the sort often used in gumball machines. Buyer called Seller to ask for a price
Buyer makes gumball machines. Seller makes mechanical coin sorters of the sort often used in gumball machines. Buyer called Seller to ask for a price quote on 1,000 coin sorters. Seller replied that she was having a special sale on coin sorters and could deliver 1,000 at a price of $1 each. Buyer asked if the usual 30-day warranty applied and Seller said that it did. Buyer said, "Great! Send us 1,000 of your coin sorters." "OK," said Seller.
The next day, Seller mailed one of its stock "Confirmation of Order" forms to Buyer. Seller had entered onto the form the price and quantity terms that she and Buyer had discussed. The bottom Seller's form said, "All special sale goods sold as is."
A few days later, Buyer sent a stock purchase order form to Seller. It made no reference to Seller's "Confirmation of Order" form but included identical price and quantity terms. The bottom of Buyer's form said, "All goods to carry the usual 30-day warranty. Payment due, per industry custom, within 30 days of receipt of goods."
Two weeks later, Seller delivered 1,000 coin sorters to Buyer. After another week had passed, Seller demanded payment. Buyer refused, saying that payment was not yet due. "In fact," said Buyer, "Because your coin sorters do not fit in our machines, we are going to return them to you without payment." Due to a series of bankruptcies among other buyers of mechanical coin sorters, Seller will find it quite hard to resell any sorters that Buyer returns to her.
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