Baby Bar Practice Questions - California First-Year Law Students' Examination Exam

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A retailer emails a manufacturer: "Please ship 500 widgets at $4 each." The manufacturer replies, "Accepted; shipment to include our standard arbitration clause for all disputes." Both parties are merchants and neither objects further. Under UCC 2-207, what is the status of the arbitration clause?

A contract was formed and the arbitration clause is automatically part of it Contract formed; the clause enters only if not a material alteration. A contract was formed on the manufacturer's terms because it sent the last form There is no contract because the acceptance varied the terms of the offer

Correct Answer:

Contract formed; the clause enters only if not a material alteration.

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