A Merchant Buyer sends a purchase order for 1,000 widgets. The Merchant Seller sends an acknowledgment including a new clause requiring binding arbitration. Does the clause become part of the contract?

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UCC Contracts QUESTION #5841

Question 1

A Merchant Buyer sends a purchase order for $1,000$ widgets. The Merchant Seller sends an acknowledgment including a new clause requiring binding arbitration. Does the clause become part of the contract?

Yes, between merchants all terms are automatically added.
No, because it is a material alteration.✔️
Yes, unless the Buyer objects within 48 hours.
No, because the 'Mirror Image Rule' prevents contract formation.

Correct Answer Explanation

Under UCC §2-207(2), additional terms that materially alter the agreement do not become part of the contract without express assent.

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