In the Matter of the Arbitration between Gaynor-Stafford Industries, Inc., Respondent, and Mafco Textured Fibers, a Division of MacAndrews & Forbes Company, Appellant, 52 A.D.2d 481

Summary

Respondent buyer and appellant seller, both merchants in the textile industry, entered into a series of contracts for the purchase by respondent from appellant of substantial quantities of textured polyester yarn. In each instance, respondent placed an oral order, appellant sent a written order acknowledgment, respondent sent its own form of a written and signed purchase order to appellant, and the yarn was delivered to respondent. On one occasion, respondent requested an extension of time to make payment and then refused to pay for certain shipments that it asserted did not include "dyeable yarn." The reverse side of each order acknowledgement contained an arbitration provision. The trial court granted a stay of arbitration. The trial court found that respondent had been unaware of the arbitration clause and thus was not bound thereby. On appeal, the court reversed. The court examined the forms involved and U.C.C. § 2-207. The court held that the parties were merchants who had long ...