Ella and Terry both own computer stores. Ella offers to buy one computer from Terry. Ella sends Terry her offer, offering to pay him $1500 but not specifying the payment method. He responds, accepting her offer. He attaches his invoice, which requires payment in cash or cashiers check. Assume that changing the form of payment is not a material alteration to the contract.

This question has 3 parts:

1. Who, if anyone, is classified as a merchant in this transaction, and why? This could be neither of them, either one of them, or both of them.

2. Under the default rule, would Ella's offer terms govern, or would Terry's acceptance terms govern, and why?

3. Let's change the facts. Now, Ella owns a computer store, but Terry is a college student who is looking to sell his old computer. The email exchange described above still occurs. Under the default rule, would Ella's offer terms govern, or would Terry's acceptance terms govern, and why?