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SFEG Corp. v. Blendtec, Inc.

91 UCC Rep. Serv.2d 878, 2017 WL 395041 (2017)

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SFEG Corp. v. Blendtec, Inc.

United States District Court for the Middle District of Tennessee
91 UCC Rep. Serv.2d 878, 2017 WL 395041 (2017)

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Facts

Blendtec, Inc. (defendant) manufactured and sold blending machines. SFEG Corp. (plaintiff) designed and manufactured electrical power products. Pursuant to an agreement between the parties, Blendtec sent SFEG purchase orders for component parts used in the production of its blending machines. Once SFEG received a purchase order from Blendtec, SFEG would send Blendtec an order acknowledgment confirming the terms of the purchase order and, sometimes, its terms and conditions of sale, which contained a limitation on warranties. Notably, the terms and conditions included the proviso that SFEG’s acceptance of a purchase order was “expressly subject” to Blendtec’s assent to the conditions set forth therein. The parties’ relationship unraveled over time, and SFEG filed suit against Blendtec for claims of breach of contract. The parties disputed whether SFEG’s terms and conditions formed part of their contract, the limitation on warranties specifically. It was undisputed that Blendtec never expressly objected or assented to SFEG’s terms and conditions but nevertheless accepted shipment of product and continued to place orders with SFEG after having received copies of the terms and conditions along with SFEG’s shipments.

Rule of Law

Issue

Holding and Reasoning (Trauger, J.)

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