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C. Itoh & Co. v. The Jordan International Co.

United States Court of Appeals for the Seventh Circuit
552 F.2d 1228 (7th Cir. 1977)


Facts

C. Itoh & Co. (Itoh) (plaintiff) sent a purchase order to The Jordan International Co. (Jordan) (defendant) to buy steel coils. Jordan replied conditionally accepting the offer in the purchase order as follows: “Seller’s acceptance is, however, expressly conditional on Buyer’s assent to the additional or different terms and conditions set forth below and printed on the reverse side.” On the reverse side was an arbitration clause. Itoh never formally accepted or objected to the arbitration clause, but both parties commenced performance. On account of poor steel coil quality, Itoh brought suit. Jordan filed a motion under the arbitration clause in its acceptance to stay the lawsuit pending arbitration. The district court denied the motion. Jordan appealed.

Rule of Law

Issue

Holding and Reasoning (Sprecher, J.)

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