Under the UCC, since both Leyland and Melanie are merchants, when Leyland sends his acceptance to Melanie's contract terms, when would his acceptance be effective?
A) When Leyland dispatches it.
B) When it is received by Melanie.
C) When received by Melanie but only if acceptance by electronic means is made, otherwise on dispatch.
D) When Leyland dispatched it but only if the U.S. mail is used, otherwise on receipt.
E) When Leyland dispatched it but only when the telephone is used, otherwise on receipt.

Question

Quizplus · Accepted Answer

Under the Uniform Commercial Code (UCC), an acceptance of an offer becomes effective upon dispatch when both parties are merchants. This is known as the "mailbox rule," which applies to the acceptance of offers in transactions between merchants.

Under the UCC, Since Both Leyland and Melanie Are Merchants