Opinion ID: 1672190
Heading Depth: 1
Heading Rank: 7

Heading: Sales Expectancy Bonus Discount Plan

Text: On February 24, 1961, without prior notice or negotiation with those affected, the home office of American announced to all sales outlets, including distributor Carlock, the institution of a sales expectancy bonus discount plan which effected a price increase by way of a reduction in discounts allowed distributors, from 42% to 38%. Under the plan annual sales expectancy figures were established, and bonus discounts were to be allowed on all purchases, in increasing percentages as annual sales increased in volume. The plan did not include OEM accounts or sales in which special quantity discounts were allowed. This plan constituted an offer which, upon acceptance, became a supplemental amendment of the previous contractual arrangements of the parties. Hinkeldey v. Cities Service Oil Co., Mo., 470 S. W.2d 494. Both parties operated under the plan. Carlock's acceptance is evidenced by the fact that with knowledge of the plan he continued in the capacity of distributor through several years. During that time, according to American's figures, Carlock's sales were large enough to earn a bonus discount only once, during the year 1962. He was sent a check for $57.60, which he cashed. Under the evidence we find the plan was in effect from inception through 1964, but was not in effect in 1965 and 1966. On remand the circuit court is directed to recalculate the sales to be credited to Carlock in each of the years the plan was in effect, in the light of the $25,301.27 of sales for which we have held he was entitled to credit, and determine what additional amounts, if any, are due Carlock under the sales expectancy bonus plan.