Theory to Practice
University of Phoenix
Graphic Communications Inc.
Graphic Communications Inc. is a high-end printing company that designs and produces posters and other materials for advertising purposes. For a particular order GCI needed a special printing press and arrangements were made to purchase this press from Armstrong Press Manufacturing to be delivered no later than July 1. Because the press was large, it would be delivered in three pieces and assembled on site. The two parties agreed on the purchase terms and GCI made a purchase order to be sent to Armstrong. This purchase order contained the price, the description of the press, the date of the order, and a provision that agreed that the three pieces of the press would be delivered, assembled, and operational by July1. Upon receipt of the purchase order, Armstrong’s manager handwrote in the delivery section, “Acknowledged as a destination contract. To be delivered and assembled in three installments to GCI over the month of May.” The manager signed the order and faxed it back to CGI and began production of the press. Armstrong shipped the first piece using their delivery truck but before the truck reached CGI it was involved in an accident that destroyed the press piece.
Is Armstrong’s addition of the delivery term binding on GCI? Explain the UCC analysis governing the additional terms added by Armstrong.
In the case of addition made to GCI preprinted purchase order by Armstrong involving delivery methods one can determine it is binding under certain conditions. First that both parties involved in the contract are merchants. This applies to both Armstrong and GCI because they both sell products on a permanent basis. Melvin (2011, p. 185) explains that when merchants sell to one another and use preprinted forms for acceptance additional terms, such as delivery method add by Armstrong becomes instantly accepted as terms of the contract. The only way that the additions of...