McCann Construction purchased a poured concrete form from Advance Concrete Forms, Inc. McCann purchased the concrete form by placing a phone call to Advance in Madison, Wisconsin. Advance delivered the concrete form with an invoice stating the terms of the sale required payment within 30 days and a 1 1/2 % interest per month finance charge would be charged on accounts over 30 days. When McCann failed to pay the invoice on time, interest was charged according to this rate. Later, McCann refused to pay the accumulated interest charge, claiming there was not a meeting of the minds regarding the finance charge in any conversation prior to the sale. The trial court concluded that the finance charge was in fact an additional term added by Advance when it accepted McCann's purchase order.

Question

Discuss Uniform Commercial Code Section 2-207 in general and with regard to this situation. Does McCann owe the interest accrued?

What will be an ideal response?

Answer 1

Yes, he does. The big change brought about by UCC 2-207 is this: An offeree who accepts may include in the acceptance terms that are additional to or different from those in the offer. It says that between merchants, an additional term becomes part of the contract unless the proposal meets one of the following exceptions: 1) the original offeror insisted on its own terms; 2) the additional terms materially alters the original offer; or 3) the offeror receives the additional terms and promptly objects to them.