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MMLU / Question 13. A buyer sent a signed letter to a seller that stated: "Ship 100…

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Question 13. A buyer sent a signed letter to a seller that stated: "Ship 100 boxes of nails at $3 per box, the price quoted in your circular." The seller mailed the buyer a signed form acknowledgment that agreed to the buyer's terms and stated on the reverse side: "Disputes regarding quality shall be arbitrated." The buyer did not reply to the seller's acknowledgment, and the seller shipped the nails. When the buyer received the nails, it found their quality to be unsatisfactory and sued the seller for breach of warranty. The seller has asked an attorney whether the parties' contract requires arbitration of the buyer's claim. What is the best advice the attorney can provide?

choices

  1. A contract was formed pursuant to conduct when the buyer received the nails, and a court would exclude the arbitration provision from the contract.
  2. A contract was formed when the seller mailed its acknowledgment, and the arbitration term became part of the contract. arbitration term became part of the contract.
  3. A contract was formed when the seller mailed its acknowledgment, and the court must decide whether the arbitration term should be excluded as a material alteration of the contract.
  4. No contract exists, because the arbitration term in the seller's acknowledgment created a counteroffer that the buyer never accepted.

subject

professional_law

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