Mary and Remaldi Co. have dealt with each other for many years. Mary's Boutique orders 100 assorted lipsticks at $2.00 each from Remaldi Co. Remaldi sends back a confirmation letter with an additional, nonmaterial term. There is:
A) no contract, but a counteroffer.
B) a contract with the additional term unless Mary objects.
C) a contract with the additional term only if Mary agrees.
D) a contract without the additional term.

Question

Quizplus · Accepted Answer

Under the Uniform Commercial Code (UCC), which governs sales of goods in the United States, when parties to a contract are merchants, an additional term in a confirmation letter becomes part of the contract unless the original offer expressly limits acceptance to the terms of the offer, the new term materially alters the contract, or the offeror objects to the new term within a reasonable time. Since the additional term is described as nonmaterial, and assuming no objection from Mary, the contract includes the additional term.