According to Exhibit 21-6 of the Text, Which of the Following

question 68

Multiple Choice

According to Exhibit 21-6 of the text, which of the following statements about material terms under the UCC and the common law is true?

• A) Under both UCC and common law, all material terms must be specified in the contract.
• B) Under both UCC and common law, material terms may be left open for subsequent determination by the parties.
• C) Under both UCC and common law, all material terms other than price must be specified in the contract.
• D) Under the UCC, all material terms must be specified in the contract, but under common law, material terms may be left open.
• E) Under common law, all material terms must be specified in the contract, but under the UCC, material terms may be left open.

---

Definitions:

Statutory Merger

A merger in which one of the companies involved absorbs the other legally and retains its original corporate identity, while the other company ceases to exist.

Legal Corporations

Entities that are legally incorporated under specific laws to carry out business or other duly recognized purposes with legal rights and obligations.

Division

A portion or part of a company that operates under the larger corporate umbrella, often focusing on a specific product line or market area.

Fair Value of Net Assets

The estimated market value of a company's assets after subtracting the fair value of its liabilities, often used in the valuation of companies during acquisitions.