Debbie Jones and Bill Schneider Exchanged Standard Order Forms to Formalize

question 59

Multiple Choice

Debbie Jones and Bill Schneider exchanged standard order forms to formalize their contract for a batch of goods and realized that their standard forms do not agree on material terms.Under UCC section 2-207,when will there be a contract? Assume that Bill did not make its acceptance conditional on Debbie's assent to any additional or different terms.

• A) Only when Debbie and Bill are merchants.
• B) When Bill's form is a definite and seasonable expression of acceptance.
• C) When the conduct of one party recognizes the existence of a contract.
• D) When the offer expressly limits acceptance to its own terms.

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Definitions:

Debt-Equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets.

Relevant Discount Rate

The interest rate used to discount future cash flows to their present value to account for the risk and time value of money in decision making.

Cost of Borrowing

The total charges, including interest and any other fees, that a borrower incurs when taking out a loan.

After-Tax Cost

The expense of an expenditure or investment after accounting for the effects of taxes.