What Is the Function of the Gap-Filling Rule Used Under

question 78

Multiple Choice

What is the function of the gap-filling rule used under the UCC?

• A) It helps open terms be "read into" a contract.
• B) It helps a merchant revoke his offer even after acceptance.
• C) It assures the offeree that goods will be held open for a reasonable time.
• D) It protects the offeror from additional terms that may be added by the offeree.

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Definitions:

Coase Theorem

a principle that asserts that in the absence of transaction costs, parties can negotiate solutions to externalities among themselves, regardless of the initial allocation of property rights.

Externalities

Economic side effects or consequences of commercial activities that affect other parties without being reflected in the cost of the goods or services involved.

Adverse Selection

A situation in markets where buyers and sellers have different information, leading to transactions where one party may be disadvantaged.

Insurance Payouts

Refers to the money that insurance companies pay to policyholders or beneficiaries when a claim is made and approved under the terms of an insurance policy.