June 19, 2008 / Law Alert

Ohio Supreme Court Rules That Statutory Interest Rate Applies to Open Accounts Absent a "Written Contract"

In a surprising move, the Ohio Supreme Court recently ruled that absent a written contract between buyer and seller stating an agreed-upon interest rate, sellers are limited to the annual statutory interest rate — currently eight percent — on sales on open account. This unanimous ruling undermines the widespread practice of establishing open account interest rates by including them on invoices and delivery slips.