Case Citation
Legal Case Name

CORINTHIAN PHARMACEUTICAL v. LEDERLE LABORATORIES Case Brief

United States District Court, S.D. Indiana, Indianapolis Division1989
724 F.Supp. 605 Contracts Commercial Law

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Case Brief Summary & Legal Analysis

Contracts Focus
3 min read

tl;dr: A pharmaceutical seller shipped a small portion of a buyer’s large order at an old price after a price hike. The court held this non-conforming shipment, explicitly labeled an “accommodation,” was a counteroffer, not an acceptance, thus no contract was formed for the full order.

Legal Significance: This case clarifies that under UCC § 2-206(1)(b), a seller’s shipment of non-conforming goods, when accompanied by seasonable notice that it is an accommodation, operates as a counteroffer rather than an acceptance of the buyer’s original offer.

CORINTHIAN PHARMACEUTICAL v. LEDERLE LABORATORIES Law School Study Guide

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Case Facts & Court Holding

Key Facts & Case Background

Defendant Lederle Laboratories, a pharmaceutical manufacturer, announced a significant price increase for its DTP vaccine, from approximately $64 to $171 per vial, effective May 20, 1986. Plaintiff Corinthian Pharmaceutical, a distributor, learned of the impending increase on May 19 and immediately placed an order for 1,000 vials at the old price through Lederle’s automated telephone ordering system. The system provided Corinthian with a tracking number for the order. Lederle’s price lists and invoices had always stated that prices were subject to change and all orders were subject to acceptance by Lederle. On June 3, Lederle shipped 50 vials to Corinthian at the old price of $64.32. Accompanying the shipment was a letter explaining that this was a partial shipment offered as an exception to its standard policy. The letter stated the balance of the order would be priced at $171 per vial and gave Corinthian the option to cancel the remainder. Corinthian sued for specific performance for the remaining 950 vials at the original price, arguing a contract had been formed for the full 1,000 vials.

Court Holding & Legal Precedent

Issue: Under UCC § 2-206, does a seller’s shipment of a non-conforming quantity of goods constitute an acceptance of the buyer’s offer when the seller simultaneously notifies the buyer that the shipment is an accommodation?

No, a contract for the full 1,000 vials was not formed. The Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis

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IRAC Legal Analysis

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Legal Issue

Under UCC § 2-206, does a seller’s shipment of a non-conforming quantity of goods constitute an acceptance of the buyer’s offer when the seller simultaneously notifies the buyer that the shipment is an accommodation?

Conclusion

This case provides a clear illustration of the UCC's accommodation shipment rule, Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation

Legal Rule

Under UCC § 2-206(1)(b), an order to buy goods for prompt shipment Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum

Legal Analysis

The court's analysis followed the principles of contract formation under Article 2 Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id

Flash-to-Full Case Opinions

Flash Summary

  • Price lists and price quotations are generally invitations to make an
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deser

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