Question: Acme, Inc. sends Widgets - R - Us , Inc. a purchase order for widgets. Widgets - R - Us , Inc. sends an invoice
Acme, Inc. sends WidgetsRUs Inc. a purchase order for widgets. WidgetsRUs Inc. sends an invoice to Acme, Inc. in which it promises to send the widgets. The invoice also contains among its boilerplate terms on the back the additional term of an arbitration clause. Arbitration is not typically used to settle disputes in the widget business. What is the most likely result?
No contract is formed between the parties because the arbitration clause constituted a counteroffer.
A contract has formed, and the arbitration clause becomes a part of the parties' contract.
No contract is formed between the parties because purchase orders and invoices cannot form a contract.
A contract has formed, but the arbitration clause does not become a part of the parties' contract.
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