Home Depot contracts with Drills-R-Us for an order of custom power washers with the Home Depot logo printed directly on the washer.  Drills-R-Us sends Home Depot a merchants confirmation memo with all of the essential terms, including the price, quantity, delivery dates, standard terms and conditions, as well as a signature line, and specifies that the offer shall remain open for a period of ten days.

A week after receiving the offer, Home Depot sends back a signed version of the confirmation memo with two changes: first, the price Drills-R-Us quoted Home Depot at was $120 per drill; Home Depot's version crosses out the original price, and now states that the cost is $100 per drill.  Second, Home Depot also includes an express warranty provision that was not part of Drills-R-Us' original memo, which states that "Drills-R-Us expressly warrants that its products are free of any defects, and all drills must conform to the design specifications set forth in the parties' initial meeting."  The parties have no further discussions after these memos are sent.  Which of the following options best describes the parties' new agreement?

Group of answer choices

Neither the new price nor the express warranty provision become part of the agreement under UCC §2-207, as Drills-R-Us never agreed in writing to the changes in the memo, so the cost of the drill remains at Drills-R-Us' price of $120 per drill.

The price provision is added to the memo as a new term at Home Depot's cost of $100 per drill, whereas the express warranty provision does not become part of the memo under UCC §2-207.

Both the price and the express warranty provision which Home Depot added become part of the Agreement under UCC §2-207 because both parties are merchants and Drills-R-Us did not indicate that acceptance is conditional on agreeing to the specific terms in the memo.

The price provision is cancelled out and courts will replace this with a "gap filler" provision based on the market price, whereas the express warranty provision is added to the memo as a new term under UCC §2-207.