Hard1 markMultiple Choice
Area II: Business LawREGBusiness LawContracts

CPA · Question 11 · Area II: Business Law

Under the UCC Sales Article (Article 2), which of the following statements is correct regarding the 'Battle of the Forms' between two merchants where the acceptance includes additional terms?

Answer options:

A.

The additional terms are always considered a counteroffer.

B.

The additional terms become part of the contract unless they materially alter it or the offeror objects.

C.

No contract is formed until the offeror expressly agrees to the new terms.

D.

The additional terms are ignored, and only the original terms apply.

How to approach this question

UCC 2-207: Between merchants, new terms stick unless material or objected to.

Full Answer

B.The additional terms become part of the contract unless they materially alter it or the offeror objects.✓ Correct
Under UCC §2-207, between merchants, additional terms in an acceptance become part of the contract unless: (1) the offer expressly limits acceptance to the terms of the offer; (2) they materially alter it; or (3) notification of objection is given.

Common mistakes

Applying the Common Law Mirror Image rule to a UCC sale of goods scenario.

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