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Suppose B (merchant) sends purchase order to S (merchant). The purchase order contains the price, quantity, and delivery terms. S sends B an acknowledgement form with the same terms, but includes on the reverse side a fine print statement that "all disputes shall be resolved by binding arbitration."

For purposes of UCC 2-207(2)(b), would the arbitration clause become part of the K?

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Jsa725 wrote:Arbitration clauses & liability clauses = courts generally say these materially alter the K...
Both would be dropped out if the K.

Correct, assuming B didn't then expressly accept those additional terms.