Dorton v. Collins & Aikman Corp. case brief summary
453 F.2d 1161
SYNOPSIS: Appeal from a United States district court's denial of defendant's motion for a stay pending arbitration.
OVERVIEW:
-After plaintiffs purchased several carpets from defendant, it discovered the carpets were composed of a cheaper carpet fiber than what was promised.
-Plaintiffs sued defendant.
-The case was removed to the district court on the basis of diversity.
-Defendant moved for a stay pending arbitration and asserted plaintiffs were bound to an arbitration agreement, which appeared on the reverse side of defendant's printed sales acknowledgement form.
-The court denied the stay and found no arbitration agreement existed. On appeal, the primary issue was whether the district court erred when it determined there was no arbitration agreement.
-The court reviewed the Uniform Commercial Code, U.C.C. § 2-207, and determined defendant's acknowledgement forms were acceptances.
HOLDING:
The court determined the arbitration provision in defendant's acknowledgement forms was an additional term to the contract. The court remanded the case to determine whether the arbitration provision accepted by plaintiffs materially altered the contract.
RULE:
-A definite and seasonable expression of acceptance or a written confirmation operates as an acceptance even though it states terms additional to or different from those offered or agreed upon, unless acceptance is expressly made conditional on assent to the additional or different terms.
OUTCOME: The court reversed and remanded the lower court's decision to determine whether the arbitration provisions in defendant's acknowledgement forms were "additional to or different from" the terms of plaintiff's oral offers.
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453 F.2d 1161
SYNOPSIS: Appeal from a United States district court's denial of defendant's motion for a stay pending arbitration.
OVERVIEW:
-After plaintiffs purchased several carpets from defendant, it discovered the carpets were composed of a cheaper carpet fiber than what was promised.
-Plaintiffs sued defendant.
-The case was removed to the district court on the basis of diversity.
-Defendant moved for a stay pending arbitration and asserted plaintiffs were bound to an arbitration agreement, which appeared on the reverse side of defendant's printed sales acknowledgement form.
-The court denied the stay and found no arbitration agreement existed. On appeal, the primary issue was whether the district court erred when it determined there was no arbitration agreement.
-The court reviewed the Uniform Commercial Code, U.C.C. § 2-207, and determined defendant's acknowledgement forms were acceptances.
HOLDING:
The court determined the arbitration provision in defendant's acknowledgement forms was an additional term to the contract. The court remanded the case to determine whether the arbitration provision accepted by plaintiffs materially altered the contract.
RULE:
-A definite and seasonable expression of acceptance or a written confirmation operates as an acceptance even though it states terms additional to or different from those offered or agreed upon, unless acceptance is expressly made conditional on assent to the additional or different terms.
OUTCOME: The court reversed and remanded the lower court's decision to determine whether the arbitration provisions in defendant's acknowledgement forms were "additional to or different from" the terms of plaintiff's oral offers.
---
Interested in learning how to get the top grades in your law school classes? Want to learn how to study smarter than your competition? Interested in transferring to a high ranked school?
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