Question
A candy manufacturer used pre-printed purchase order forms to purchase separate orders of baking sugar from a supplier. The supplier responded to each order by
A candy manufacturer used pre-printed purchase order forms to purchase separate orders of baking sugar from a supplier. The supplier responded to each order by sending the shipment along with its own printed form confirming the shipment and the terms. According to the manufacturer, the last shipment contained spoiled sugar. The manufacturer filed a complaint in state court alleging breach of contract and damages. The supplier filed a motion to have the dispute transferred to arbitration. The manufacturer's purchase order forms were silent as to the mode of settling disputes, but the supplier's form contained a clause calling for "any controversy or claim" to be settled by arbitration. The manufacturer was silent as to the arbitration clause. What is the likely decision of the court?
A.The case must be transferred to arbitration because a clause in the acceptance form always becomes a part of the contract if the offeror does not reject it.
B.The case must be transferred to arbitration because the additional term did not materially alter the offer and therefore became incorporated into the contract.
C.The clause did not automatically become a part of the contract because it materially altered the offer, thus there is no transfer to arbitration.
D.The clause did not become a part of the contract because the offer in this case expressly limited acceptance to the strict terms of the offer, and thus there is no transfer to arbitration.
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