On Jan 1, 2014, Fred Mercury ("Mercury") mailed a purchase order to the Glen Michaels ("GM") for magnetic tape meant to be used in the manufacture of a new high density tape drive.Mercury's PO included language requiring all the implied warranties under the UCC.

Mercury ordered 4,000 feet of tape, at a price of $5.00 per foot. Mercury's purchase order also indicated that GM should deliver the tape at GM's expense no later than March 1, 2014.

After receiving Mercury's purchase order, GM mailed a written acknowledgment, agreeing to all of Mercury's terms on January 7^th, 2014. It was received by Mercury on the 12^th.

GM's acknowledgment contained a disclaimer of all implied warranties and a provision that limited Mercury's remedies to replacement of any tape that was broken or otherwise lost in transit. Finally, GM's acknowledgement conditioned acceptance expressly on the terms contained in the acceptance letter.

GM shipped 4,000 feet of tape which arrived on February 15^th.

Mercury accepted the tape order on February 16^th of 4,000 feet of tape.Mercury began using the tape on March 1^st, though none of the tape was broken, 1,000 feet were not suitable for the purpose intended.

As a result, Mercury was unable to complete the drive they were building and was unable to bid on a $1,000,000 contract with Seagate.There were no significant additional costs in the construction, and the completed drive is worthless.

Q: Discuss any contract claims Mercury may have against any party.Discuss defenses to claims and possible damages.