Ella owns a computer store, where she buys used computers and sells both new and used computers. Terry is a college student who is looking to sell his old computer. Ella offers to buy Terry's computer. Ella emails Terry her offer, offering to pay him $800 for the computer and stating that she will pay by credit card. Terry also responds by email. He accepts the offer in his email, but his email states that payment must be by Venmo instead of by credit card. 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?
2. Under the default rule, would Ellas offer terms govern, or would Terrys acceptance terms govern, and why?
3. Let's change the facts. Now, both Ella and Terry own computer stores, and they both regularly buy and sell computers. 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?