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Union Carbide Corporation v. Oscar Mayer Foods Corporation Case Brief
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Case Brief Summary & Legal Analysis
tl;dr: A seller attempted to use a fine-print invoice term to force a buyer to pay for the seller’s past tax-calculation errors. The court rejected the claim, holding the term was a “material alteration” under UCC § 2-207 and thus not part of the contract.
Legal Significance: This case clarifies the UCC § 2-207 “material alteration” test, defining it as a term causing “unreasonable surprise” to which consent cannot be presumed. It establishes that a clause shifting liability for a seller’s own tax errors is a quintessential material alteration.
Union Carbide Corporation v. Oscar Mayer Foods Corporation Law School Study Guide
Use this case brief structure for your own legal analysis. Focus on the IRAC methodology to excel in law school exams and cold calls.
Case Facts & Court Holding
Key Facts & Case Background
Union Carbide Corporation (Seller) sold plastic sausage casings to Oscar Mayer Foods Corporation (Buyer). For years, Oscar Mayer would place orders via purchase orders, which constituted the offers. Union Carbide would ship the goods and send invoices, which acted as acceptances. The back of Union Carbide’s invoices contained a printed term stating, “In addition to the purchase price, Buyer shall pay Seller the amount of all governmental taxes…that Seller may be required to pay.” To match a competitor’s price, Union Carbide stopped charging Oscar Mayer for two Chicago sales taxes, believing a change in its ordering process made them inapplicable. Eight years later, Illinois tax authorities determined the taxes were due and assessed Union Carbide for $88,000 in back taxes plus $55,000 in interest on its sales to Oscar Mayer. After paying the assessment, Union Carbide sued Oscar Mayer for indemnification, arguing the invoice term obligated Oscar Mayer to cover the cost. Oscar Mayer’s purchase orders did not contain a similar term, and it never expressly agreed to the provision.
Court Holding & Legal Precedent
Issue: Does an additional term in a seller’s invoice, which creates an open-ended indemnity obligation for the seller’s own tax errors, become part of a contract between merchants under UCC § 2-207?
No. The purported indemnity clause was a material alteration of the contract Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore mag
IRAC Legal Analysis
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Legal Issue
Does an additional term in a seller’s invoice, which creates an open-ended indemnity obligation for the seller’s own tax errors, become part of a contract between merchants under UCC § 2-207?
Conclusion
This case provides a clear and influential interpretation of UCC § 2-207's 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 ni
Legal Rule
Under Uniform Commercial Code § 2-207(2), an additional term included in 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 vel
Legal Analysis
The court analyzed the dispute through two lenses: contract interpretation and 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 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 no
Flash-to-Full Case Opinions
Flash Summary
- An invoice term requiring a buyer to indemnify a seller for
