a. Cookie Manufacturing Co. ("Cookie") offered to sell to a local retail bakery ("Bakery") 1,000 pounds of chocolate cookies at $1.00 per pound. Bakery replied in a signed writing as follows: "We accept your offer for the 1,000 pounds of chocolate cookies at $1.00 per pound. But please make sure that you wrap them securely in cellophane wrapping". According to UCC 2-207:

1. A contract has been formed between the parties.
2. A contract will be formed only if Cookie agrees to wrap the cookies securely in cellophane wrapping.
3. No contract is formed because Bakery included a new contract term in its reply.
4. No contract is formed because Bakery's reply was a counteroffer.

b. Now that the COVID lockdown is over and you can get back to the gym, you want to sell your used Peloton bike to your friend, who previously expressed interest in it. After doing some research, you determine a fair market value of $800 for it and decide to offer it to your friend for this price. However, when you send your friend the offer by email, you mistakenly type $500. Your friend immediately replies his acceptance by return email. You further reply that you meant $800, but are you now bound to sell your Peloton bike to your friend for $500?

1. Yes, this is a bilateral mistake about the same material fact, so a contract was formed.
2. No; although this was a unilateral mistake on your part, your friend should have known that you made a mistake.
3. Yes; this is a unilateral mistake on your part, so you are now bound to sell the bike.
4. No; you've made a valid counteroffer, and thus, gave your friend the right of acceptance and refusal.