BAYWAY REFINING CO. v. OXYGENATED MARKETING AND TRADING A.G. Case Brief
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Case Brief Summary & Legal Analysis
tl;dr: A buyer refused to pay an excise tax, arguing the seller’s tax-shifting clause, added in an acceptance form, was a material alteration under UCC § 2-207. The court held the clause was not a material alteration due to industry custom and placed the tax burden on the buyer.
Legal Significance: Establishes that the party opposing an additional term under UCC § 2-207(2)(b) bears the burden of proving material alteration, and that established industry custom can defeat a claim of objective surprise.
BAYWAY REFINING CO. v. OXYGENATED MARKETING AND TRADING A.G. Law School Study Guide
Use this case brief structure for your own legal analysis. Focus on the IRAC methodology to excel in law school exams and cold calls.
Case Facts & Court Holding
Key Facts & Case Background
Bayway Refining Co. (Bayway), a seller of petroleum products, contracted to sell MTBE to Oxygenated Marketing and Trading A.G. (OMT). OMT sent a purchase offer via fax. Bayway responded with a confirmation fax that acted as an acceptance under UCC § 2-207(1). Bayway’s acceptance stated it incorporated its “General Terms and Conditions,” which included a “Tax Clause” shifting liability for any excise taxes to the buyer. Bayway did not attach the terms, and OMT did not object. After the sale, a federal excise tax of $464,035.12 was levied because OMT was not registered for a tax exemption. Bayway paid the tax and invoiced OMT for reimbursement pursuant to the Tax Clause. OMT refused to pay, contending the clause was a material alteration of their agreement and thus not part of the contract under UCC § 2-207(2)(b). The district court granted summary judgment for Bayway.
Court Holding & Legal Precedent
Issue: Under UCC § 2-207(2), does an additional term in a seller’s acceptance, which allocates excise tax liability to the buyer, become part of the contract when the buyer fails to prove the term constitutes a material alteration through surprise or hardship?
Yes. The Tax Clause became part of the contract because OMT, the Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate ve
IRAC Legal Analysis
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Legal Issue
Under UCC § 2-207(2), does an additional term in a seller’s acceptance, which allocates excise tax liability to the buyer, become part of the contract when the buyer fails to prove the term constitutes a material alteration through surprise or hardship?
Conclusion
This case clarifies the application of UCC § 2-207(2)(b), confirming the burden Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitati
Legal Rule
Between merchants, an additional term in an acceptance becomes part of the Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla
Legal Analysis
The court applied the "battle of the forms" framework under N.Y. U.C.C. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est
Flash-to-Full Case Opinions
Flash Summary
- Under U.C.C. § 2-207(2), the party opposing an additional term bears