3. Explain the contract concept of consideration.
4. On April 10, Call-Mart sends Buffy a purchase order for 1000 Buffy BMX bikes at $75 a piece. Call-Mart’s purchase order includes terms on the back of the form that the seller warrants that the goods are free of defects and are merchantable. On April 11, Buffy receives the purchase order, sends Call-Mart a confirmation with additional terms on the back of the document that limit any warranties, and specifically disclaims any warranty of merchantability. On April 15, Buffy ships the bikes along with an invoice stating identical terms as the confirmation. Assuming both parties are merchants and that Call-Mart’s April 10 communication was an offer, is there an implied warranty of merchantability in the contract?
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