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 for the computer and stating that she will pay by credit card. Terry responds with his company's acceptance form. He accepts the offer, but his form states that a credit card payment will not be accepted, and payment must be made in cash. 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. What, if anything, could the other party do to make their terms govern instead?

Answer rating: 100% (QA)

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