A dispute arises concerning the workmanship of the parts, and Browne & Assoc. wishes the case to be arbitrated in San Francisco. What result?

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A dispute arises concerning the workmanship of the parts, and Browne & Assoc. wishes the case to be arbitrated in San Francisco. What result?

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Browne & Assoc., a San Francisco company, orders from U.S. Electronics, a New York company, ten thousand electronic units. Browne & Assoc.’s order form provides that any dispute would be resolved by an arbitration panel located in San Francisco. U.S. Electronics executes and delivers to Browne & Assoc. its acknowledgment form, which accepts the order and contains the following provision: “All disputes will be resolved by the State courts of New York.” A dispute arises concerning the workmanship of the parts, and Browne & Assoc. wishes the case to be arbitrated in San Francisco. What result?

Explanation & AnswerSolution by a verified expert

Explanation

Company B made the offer that included that any conflict will be resolved in the City SF,which was accepted by Company E. Company E made the offer to change the conflict solving authority, but it did not mention that the offer by Company B will only be accepted when the changes made by Company E will be accepted by Company B. As a result, as Company B did not give acceptance to the changes made by Company E, the original offer made by Company B will be binding upon both the companies.

Verified Answer

The problem will be resolved in the City SF as this was the place where the original offer was made by Company B, which was not objected against by Company E. Additionally, Company E did not mention that the acceptance of the offer from Company B is based on the condition of acceptance of changes made by Company E.

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