MI Bar Practice Questions - Michigan Bar Examination Exam

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A merchant buyer sends a purchase order; the merchant seller responds with an acknowledgment containing an additional arbitration clause. Neither contract is expressly limited to its own terms and neither objects. Under UCC § 2-207, what is the status of the additional term between merchants?

The acknowledgment is a rejection and counteroffer, so no contract forms Additional terms never become part of a contract under the UCC The additional term becomes part of the contract unless it materially alters it, the offer limited acceptance to its terms, or it was objected to within a reasonable time The contract is governed entirely by common-law mirror-image rule

Correct Answer:

The additional term becomes part of the contract unless it materially alters it, the offer limited acceptance to its terms, or it was objected to within a reasonable time

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