The Brugger Corp. owned a farm, operated by Jason Weimer, who acted as the compa

Question

The Brugger Corp. owned a farm, operated by Jason Weimer, who acted as the company’s business agent. Tri-Circle, Inc. was a farm equipment company. On behalf of Brugger, Weimer offered to buy from Tri-Circle certain equipment for use on the farm. Tri-Circle accepted the offer, using a pre-printed form. The form included a finance charge for late payment. Weimer’s offer had said nothing about finance charges, but he made no objection to the new term. Tri-Circle supplied the farm equipment but later alleged that Brugger had refused to pay for $12,000 worth of the supplies. Tri-Circle sued. In deciding whether Tri-Circle was entitled to finance charges, the court first inquired whether Brugger, Weimer, and Tri-Circle were merchants. Why did it look into that issue? Were they merchants?

Explanation / Answer

Merchants in the contract are those who has knowledge or skill peculiar to the practices or goods involved in the transaction.and Between merchants means in any transaction with respect to which both parties are chargeable with the knowledge or skill of merchants.

So all these three are merchants with respect to the contact as they all had knowledge or skill peculiar to the practices or goods involved in the transaction.Yes ther are merchants.

Accounts not paid within 30 days from date of billing will be subject to finance charge computed at a specified periodic rate. And Burgger dint object to new terms so he is liable to finance charge, if shown on invoices. But the notice of finance charge was not given by Tri-circle.At the time of acceptance of offer there was no discussion about the finance charge and it was mentioned in the terms but still there Tri circle is not eligible to take finance charge as there was no proper finance charge intimation notice before. Just by mentioning in the pre printed form Tri circle is not entitled for finance charge. But they can charge for the cost of supplies which is included in $12000, so that part TYri circle can claim

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