Multiple choice question on commercial law (UCC)

Question #15 (worth 1 point)

On July 1, an owner of a company that built recreational vehicles was visited by a representative of a company that manufactured gas tanks. The representative told the owner that the company could supply tanks at $100 per tank, a substantial savings over what the owner currently pays.

The owner asked if the company could supply 1,000 tanks by the end of the month, and the representative assured him they could. The owner stated that he would think about it and decide what to do within a week.

On July 3, the owner sent the following memo to the company headquarters at the address provided by the representative: "I am happy to confirm our contract of 1,000 tanks to be delivered by July 31. I have always received a 10% discount for cash, so I will assume you will grant me the same discount.

I will have $90,000 cash ready to give your representative at the time of delivery." On July 31, the company delivered 1,000 tanks to the owner. The representative accompanied the delivery and presented the owner with a bill for $100,000.

The owner refused to pay more than $90,000. Which of the following accurately states the legal rights of the parties?

(A) The contract price was $100,000 if the discount term in the owner's July 3 memo materially altered the terms of the company's offer.

(B) The contract price was $100,000 even though the company's offer did not expressly limit acceptance to the terms of the contract therein.

(C) The contract price was $90,000 because the July 3 memo was an effective integration of their agreement.

(D) The contract price was $90,000 because the company did not specifically object to the 10% discount stipulated by the owner in his July 3 memo. Page 10 of 18