Cengage Advantage Books: Business Law 9th Edition by Arnold Goldman ,William Sigismond

Exercise 1

Auburn Plastics sent a letter to CBS offering to manufacture molds that CBS used to make parts for toys. The letter offer stated that CBS had fifteen days to accept or the option would lapse and that if CBS did accept the offer and required delivery of the molds, there would be a 30 percent charge for services. CBS waited four months to respond to the offer. It sent a purchase order for the molds but included a condition that CBS had the right to demand delivery of the molds from Auburn Plastics at any time without payment of the service charge. Auburn accepted the offer through an acknowledgment form but stated that the service charge would apply. When CBS demanded immediate delivery of its order, Auburn refused to deliver the molds unless CBS paid the 30 percent charge for services. CBS then obtained an order directing the sheriff to seize the molds. Did CBS have the right to do that? (CBS, Inc. v. Auburn Plastics, Inc., 413 N.Y.S.2d 50)