UNION CARBIDE CORP. V. OSCAR MAYER FOODS CORP.
947 F.2d 1333 (7th Cir. 1991)
NATURE OF THE CASE: This is a diversity suit for breach of contract, brought by Union
Carbide (P) against Oscar Mayer (D) and resolved in D's favor on summary judgment.
FACTS: P sold D plastic casings. P had instructed its customers to send their orders to
an address outside Chicago, and it stopped paying both sales taxes and therefore deleted
them from the invoices it sent D. Eight years later the Illinois tax authorities decided
that the two sales taxes were due notwithstanding the change of address and assessed P
$88,000 in back taxes with $55,000 in interest thereon. P brought this suit to recover what
it had paid claiming that D had agreed to indemnify it for all sales tax liability. D got
the judgment and P appealed.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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