Sally's Stationery Store ordered 500 Parker Pens from Parker Manufacturing via fax with assorted colors ( silver tops with 100 green, 100 blue, 100 red, 100 black and 100 white bottoms ) at a cost of $ 2.50 each and delivery to Sally's within 30 days. 3 days later, Parker Pen acknowledged receipt of the order and the acknowledgment said at the bottom: "See Terms on Reverse Side." On the reverse side it stated: "In the event of any dispute, customer agrees to arbitrate in Chicago, Illinois". It also stated" Customer may exchange items if not fully satisfied within 30 days of delivery." On the 29th day, Parker Pen delivered a shipment of pens that included silver tops with 500 black bottoms. Sally noticed that 50% of the pens had scratches on the silver tops but she told the truck Driver from ABC Delivery Company, "If I didn't need these pens so bad for my customers, I'd reject the entire shipment since they are not what I wanted and suffer from scratches..." Later, Sally sold all 500 pens to customers. Three months later, customers complained that the pens were not writing properly. Sally had numerous ink cartridges tested and she was advised that the cartridges were "defective". She contacted Parker Pen and demanded a new shipment of pens in accordance with original order" . Parker refused but offered to ship new cartridges". It also requested payment of the original order. Sally refused the offer , insisting that Parker was in breach and that she would not pay.

Question: Parker demanded arbitration Sally consults you about her rights under the Universal Comercial Code?. She wishes to know whether she is required to arbitrate. What are her options, if any, under the Universal Comercial Code ?

What is the status of the parties?Merchants?Why?Does a buyer have the right to inspect goods?What is a latent defect?Patent defect?Does it matter whetherdefects are latent or patent

when it comes to inspection of goods at time of delivery? Does a buyer have an obligation to educate upon inspection and discovery ofproblems?TO whom?What is the doctrine of cure?

Must parties arbitrate if one party's formdemands it and another does not?What is the doctrine of waiver?How does it operate?Damages? To whom? How much, if any?

Thanks in advance