Court Opinion

ID: 9472763
Source: CourtListenerOpinion
Date Created: 2023-08-05 04:09:53.351978+00
Date Added: 2024-06-11T17:43:07.777334
License: Public Domain

CONTIE, Circuit Judge,
concurring.
I concur in Parts I and II of the majority opinion. Since our holding that the implied warranties were disclaimed properly disposes of this case, I do not reach the issues discussed in Part III of the majority opinion.
The majority apparently construes Worthington’s May 1974 letters as a viable offer even after the joint venture entered *1178the picture in late June or early July. App. at 116. However, because Worthington specified that the May offer remained open only for 30 days, the offer lapsed prior to formation of the joint venture. App. at 473.1 Worthington’s letter of August 26 referred to “Our Proposal CLV-129-74EPL,” thereby incorporating the disclaimer of implied warranties.2 I agree with the majority that the offer was accepted by the joint venture through a verbal purchase order on August 28. This offer and acceptance, including the warranty disclaimer, constituted the contract.
The implied warranty of merchantability may be excluded by a conspicuous disclaimer which mentions merchantability; the implied warranty of fitness may be excluded by a conspicuous written disclaimer. Ohio Rev.Code § 1302.29(B). Since the written disclaimer mentions merchantability, only the disclaimer’s conspicuousness is addressed. The question of conspicuousness is one of law which this court may consider de novo. Delhomme Industries, Inc. v. Houston Beechcraft, 669 F.2d 1049, 1061 (5th Cir.1982). Ohio Rev.Code § 1301.01(J) provides:
“Conspicuous”: A term or clause is conspicuous when it is so written that a reasonable person against whom it is to operate ought to have noticed it. A printed heading in capitals (as: NONNEGOTIABLE BILL OF LADING) is conspicuous. Language in the body of a form is “conspicuous” if it is in larger or other contrasting type or color. But in a telegram any stated term is “conspicuous.” Whether a term or clause is “conspicuous” or not is for decision by the court.
The disclaimer was clearly conspicuous in the May documents because it was printed in all capital letters, thereby contrasting with the remainder of the document. Whether incorporation of the disclaimer by reference in the August letter satisfied the requirement of conspicuousness requires consideration of the bargaining strength and commercial sophistication of the parties and whether the party attempting to avoid the disclaimer had actual knowledge of the disclaimer at the time of the transaction. AMF, Inc. v. Computer Automation, Inc., 573 F.Supp. 924, 929 (S.D.Ohio 1983) (applying California law). Under Ohio law, a disclaimer has been found conspicuous when the buyer, a commercial entity, had actual knowledge of the disclaimer which was common in the industry. Marion Audiovisual, Etc. v. Eastman Kodak Co., 487 F.Supp. 371, 374-75 (N.D.Ohio 1980); FMC Finance Corp. v. Murphee, 632 F.2d 413, 419 (5th Cir.1980); Office Supply Co., Inc. v. Basic Form Corporation, 538 F.Supp. 776, 784-86 (E.D.Wis. 1982); Fargo Machine & Tool Co. v. Kearney & Trecker Corp., 428 F.Supp. 364, 372 (E.D.Mich.1977).
The testimony indicated that the joint venture was a sophisticated business entity, whose participants had built several major sewage treatment plants in Kentucky, Ohio and Indiana. App. at 104. The testimony of Lawrence Rayburn of the Goettle Co. and George Cramer of Dugan & Meyers established that the joint venture was aware of the warranty provisions in Worthington’s May letter (App. at 118, 138) and that such a warranty was standard in the industry (App. at 131). Therefore, the disclaimer was conspicuous and barred appellees’ warranty claims.
Accordingly, I concur with the majority that the judgment of the district court be reversed.

. Even where there is a written agreement to hold an offer open, the period of irrevocability may not exceed three months. O.R.C. § 1302.-08.

. The disclaimer stated:
WORTHINGTON MAKES NO OTHER WARRANTY OF ANY KIND WHATSOEVER, EXPRESSED OR IMPLIED; AND ALL WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE ARE HEREBY DISCLAIMED BY WORTHINGTON AND EXCLUDED FROM THESE TERMS OF SALE.