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

Exercise 5

Charles Cable TV, which was building a new cable television system, contacted Eagle Comtronics, Inc. by phone and agreed to buy several thousand descrambler units for its cable system. The descramblers were shipped to St. Charles along with a sales acknowledgment form containing terms and conditions of the sale. St. Charles made partial payment for the descramblers before discovering that some of the units were defective. Eagle accepted a return of the defective units. St. Charles then attempted to return all the units, asking that they be replaced by a newer model. When Eagle refused to replace all the old descramblers, St. Charles stopped paying Eagle. Eagle sued for breach of contract, but St. Charles claimed that no valid contract existed between the parties. Was St. Charles correct? (St. Charles Cable TV v. Eagle Comtronics, Inc., 687 F. Supp 820)