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0 tracked cards Contracts

A merchant buyer sent a purchase order for machine parts. The merchant seller sent an acknowledgment stating, "Our acceptance is expressly conditional on your assent to the terms on this acknowledgment," and included warranty and arbitration terms not in the purchase order. The buyer did not assent to those terms, but the seller shipped the parts and the buyer accepted and paid for them.
Which statement is most accurate under UCC 2-207?

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If the writings do not form a contract but both parties perform, a contract can arise by conduct with terms on which the writings agree plus applicable UCC supplementary terms. Article 2 requires the parties to return all goods and undo performance whenever forms disagree. The seller's added terms automatically control because the seller shipped goods. The buyer's original terms automatically control because the buyer sent the first form.

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