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:

The additional terms are always considered a counteroffer.

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

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

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.

Question 10 All questions Question 12

Practice the full CPA REG Practice Exam 5

72 questions · hints · full answers · grading

More questions from this exam

Q01A CPA is representing a client, TechSolutions Inc., in an IRS examination regarding a large resea...Hard Q02A tax return preparer is engaged to prepare a return for a client who has engaged in a transactio...Hard Q03Which of the following statements accurately describes the disciplinary authority of a State Boar...Hard Q04A taxpayer filed their Year 1 individual income tax return on March 15, Year 2. The return showed...Hard Q05A taxpayer disagrees with a proposed IRS deficiency and wishes to litigate the matter. The taxpay...Hard

View all 72 questions →