Team # 1, Captain – Universal
Team # 2, Captain – Eurobilders
Earlier this year, officers of Universal Pipe, Inc., of Kansas, manufacturer of pipe insulation, attended at trade fair in Montreal. There they met representatives of Eurobilders, GmbH, of Berlin, builders of industrial facilities in Germany, and parties exchanged information.
One month later Eurobilders emailed a purchase order form stating “We today order 5,000 lbs. Universal Standard Pipe Insulation Product “A” for $10,000. , FOB Kansas City. This contract shall be governed by the laws of Germany. Please arrange immediate shipment and delivery to Duesseldorf, Germany.
That same day, Universal responded by emailing the signed Acknowledgement Form to Eurobilder’s Berlin Hqs. That form stated “We accept your order to buy 5,000 lbs. Universal Standard Pipe Insulation Product “A” for $10,000., FOB Kansa City. At the bottom of the form,
“All goods sold as is and with all faults (UCC 2-316). This contract is governed by the law of Kansas. The goods are received and paid for.
The goods are shipped and Eurobilder uses the insulation in constructing the factory. Unfortunately, the insulation corroded the metal of the pipes in the factory. The type of pipe is governmentally mandated in Germany, and is customarily used in such faculties throughout Europe. Universal has sold its product throughout the U.S> and Canada, and has never encountered similar problem before. After some research it discovers pipes in North America contain different alloys.
Eurobilders incurred $10,000,000. Loss due to the corrosion, and would seek full compensation from Universal.
This will be first attempt at negotiating a settlement.