Question

Miranda Airways, a commercial air carrier, has a contract with Wurtherton, Inc, manufacturer, to purchase a new plane. Due to a sudden shortage of cash, Miranda Airways goes to MetrosBank. MetrosBank i transaction, MetrosBank would. Wurtherton considers the offer, and then sends an acceptance with additional terms. The additional terms stipulates that Miranda Airways could have the new airplane for a period of 10 years, and then return it to Wurtherton. Miranda Airways agrees to the acceptance, when Miranda Airways agreed to the additional terms acceptance provided b to Wurtherton that if Miranda does not pay for the , and Wurtherton hands the new airplane over to them. What UCC rule was applied y Wurtherton?

A) battle of the forms rule
C) mirror image rule
B) firm offer rule
D) gap-filling rule

Answer 1

The UCC rule applied when Miranda Airways agreed to additional terms proposed by Wurtherton, Inc. is the additional terms rule from UCC 2-207. This rule allows for contract formation with differing or additional terms between merchants, provided they do not materially alter the original contract and are not objected to by the original offeror.

Step-by-step explanation:

In the scenario described, Miranda Airways and Wurtherton, Inc. are engaged in a contractual agreement for the purchase and sale of an airplane, which falls under the governance of the Uniform Commercial Code (UCC). Specifically, when Wurtherton accepts the offer from Miranda Airways with additional terms, and these terms are agreed upon, the UCC rule being applied is likely the additional terms rule under UCC 2-207.

The UCC 2-207 rule allows for a contract to be formed even when there are differing or additional terms in the acceptance, provided that the original offer did not expressly limit acceptance to the terms of the offer, and that the additional terms do not materially alter the original terms of the offer. In the case of a contract between non-merchants or when the additional terms materially alter the contract, the additional terms are treated as proposals for addition to the contract. In the case of merchants, such as the scenario here, if the additional terms do not materially alter the contract, they become part of the contract unless: (1) the offer expressly limits acceptance to the terms of the offer; (2) the offeror has already objected to the particular terms, or (3) the offeror objects to the additional terms within a reasonable time after notice of them is received.

In this case, Miranda Airways did not object to the additional term stipulating a 10-year usage period followed by the return of the plane but instead agreed to it, thereby incorporating the new terms into the contractual agreement according to the principles of UCC 2-207.