Final answer:
When there are minor differences in terms on forms exchanged by merchants under the UCC, the conflicting terms cancel each other out and the UCC fills in with standard provisions. The contract remains valid and enforceable.
B) The conflicting terms cancel each other out.
Step-by-step explanation:
Under the Uniform Commercial Code (UCC), which governs transactions between merchants, a contract can exist even if there are minor differences on additional terms in the forms exchanged by the parties. In such transactions between merchants, if the forms have conflicting additional terms, the UCC provides a solution to these conflicts. According to the UCC section 2-207, when both parties are merchants, additional terms in an acceptance or a confirmation become part of the contract unless:
- The offer expressly limits acceptance to the terms of the offer;
- They materially alter the original contract; or
- Notification of objection to the additional terms has already been given or is given within a reasonable time after notice of them is received.
In the case where there are conflicting minor terms between the forms, the UCC generally resolves this by defaulting to a 'knock-out' rule where the conflicting terms are knocked out of the contract, and the UCC fills in the gaps with its own standard provisions.
Therefore, the correct answer is B) The conflicting terms cancel each other out. The forms with minor conflicting terms do not make the contract void, unenforceable, or give preference to the terms of the offer. The contract is still valid and enforceable, with the UCC providing the necessary terms to fill in the blanks where the original contract does not have an agreed-upon provision due to the conflict.