Under the UCC, when both parties are merchants, an additional term in the acceptance automatically becomes part of the contract unless one of three exceptions applies. Which of the following is NOT one of the exceptions?

• A. The term is merely an addition and does not materially alter the contract.
• B. The offer expressly limits acceptance to the terms of the offer.
• C. The term materially alters the original contract.
• D. The offeror has already objected to the additional terms, or objects within a reasonable time after notice of them were received.

Answer: (C)

Under the UCC, when both parties are merchants, an acceptance that adds terms to the contract generally becomes part of the deal unless one of three things happens: the added term would materially alter the contract; the offer expressly limits acceptance to the terms of the offer; or the offeror has already objected to the additional terms or objects within a reasonable time after notice of them. The option that says the term is merely an addition and does not materially alter is not one of those exceptions—because a non-material addition isn’t a reason to reject the extra term. The other three options describe valid reasons to exclude the added term: a term that would materially alter the contract, an express limitation to the offer’s terms, and prior or timely objection by the offeror. So the statement about a non-material addition is not an exception, making it the correct choice for what is NOT an exception.