Action Play Equipment ordered 200 feet of chain, 400 clasps, and 50 swing seats from Brace Company for $1,600 to be delivered within three weeks of the order. Brace sent back an acceptance form which stated payment was due within 30 days of delivery or a finance charge of 2% per month would be added to the balance. What is the status of the interaction between Action and Brace?
A) There is a valid contract under the UCC, and the additional payment terms become part of the contract unless Action objects within a reasonable period of time.
B) There is a valid contract for the goods, but the payment terms will not become part of the contract.
C) There is no contract, because Brace has made a counteroffer by adding payment terms.
D) There is no contract, because the method of transportation has not been decided.

Question

Quizplus · Accepted Answer

Under the Uniform Commercial Code (UCC), which governs sales of goods, a contract is formed when there is an offer and acceptance, even if the acceptance includes additional or different terms. In this case, the acceptance form from Brace with the additional payment terms does not prevent a contract from being formed. Instead, these terms become part of the contract unless the offeror, Action Play Equipment, objects within a reasonable time.

Action Play Equipment Ordered 200 Feet of Chain, 400 Clasps