[Cookware Crisis] Aranda Owns Aranda's Cooking, a Cooking Supply Company

question 24

Multiple Choice

[Cookware Crisis] Aranda owns Aranda's Cooking, a cooking supply company which sells high quality cookware to restaurants and specialty stores. Aranda stopped at a potential customer, Rita's Restaurant, to show Rita a new, elite line of copper cookware, bakeware, and utensils. Rita told Aranda she wanted to buy the entire cookware line for the stated price of $5,000, but needed time to think about the other items. The following day, Rita called Aranda and told her to add the line of bakeware Rita had quoted for $5,000 and the line of utensils. The next week, Aranda delivered the entire cookware line, and said she would return the next day to drop off the bakeware and utensils and pick up a check for $12,000 which included $5,000 for the bakeware and $2,000 for the utensils. Rita was outraged at the price of the utensils and told Aranda not to deliver the utensils because there was no agreement about them. Aranda tells Rita that she agreed to buy the utensils and there is a valid contract, and that she expects full payment when she returns the next day. Rita responds that the addition of the utensils was only a counteroffer, which was not accepted by Rita and there is nothing in writing, and therefore there is no contract. Aranda delivers the bakeware and utensils the following day.
-Is Rita correct that her statement to add the utensils did not constitute acceptance?

• A) No, because additional terms must be in writing.
• B) No, because Aranda never accepted Rita's counteroffer.
• C) No, because Rita's acceptance was not the mirror image of Aranda's offer.
• D) Yes, because additional terms are always permitted in sales contracts under the UCC.
• E) Yes, because Rita did not expressly condition her acceptance upon Aranda's assent to the additional terms.

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Definitions:

Semiannual Interest

Interest that is calculated and paid twice a year.

Consolidated Financial Statements

Financial statements that combine the financial information of a parent company and its subsidiaries into one set of statements.

Parent Company

A company that holds a controlling interest in one or more subsidiaries, exerting control and influence over their operations.

Subsidiary Company

A company that is completely or partially owned and wholly controlled by another company, which is referred to as the parent company.