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Sally's Stationery Store ordered 500 Parker Pens from Parker Manufacturing via fax with assorted colors ( silver tops with 100 green , 100 blue, 100

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 A B C 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 wilting 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. Parker demanded arbitration. Sally consults you about her rights under the U C C . She wishes to know whether she is required to arbitrate. What are her options , if any, under the U C C ?

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