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Posted: June 17th, 2023

Laurel Corp, in Forest Hills, New York ordered by telephone 100 Mahogany wood

Laurel Corp, in Forest Hills, New York ordered by telephone 100 Mahogany wood table sets with 4 chairs at a cost of $2,000 per unit from Hardy Manufacturing Co. In North Carolina with delivery in 45 days at âbuyers warehouseâ. Laurel followed up with a writing which summarized its order and at the bottom it said: âSign and Return. See Terms on Reverse Sideâ. On the opposite side it said: âIn the event of any dispute, parties will proceed by court action.â Five days later, Hardy responded by letter: âThank you for Order. Buyer to remit 20% of price within 10 days of Order with delivery at buyerâs place within 45 days. Sign and Return. See Terms on Reverse Side. On the opposite side it said: âIn the event of any dispute, parties will proceed by arbitration only OR defaulting buyer will pay $250,000 as liquidated Damagesâ Neither party signed an acknowledgement and ten days later, Laurel remitted 20% of the price. Thirty days later, Hardy advised Laurel in writing it was shipping the tables and chairs by ABC Truck Co. with delivery to arrive in 4 days. It also included the bill of lading. While the truck was in route from North Carolina to New York, a storm caused the truck driver to lose control of the vehicle and it flipped over resulting in a total loss of all merchandise. Hardy demanded the balance owed or $250,000 in liquidated damages for breach; Laurel demanded the return of its deposit or a new shipment of good since it never received what it ordered. Later, Hardy demanded arbitration OR $250,000 and Laurel refused. Discuss the rights of all parties. Must the buyer pay the liquidated damages? Must the parties proceed to arbitration? Court? Is there a contract? Why? Why not? Discuss fully.

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