To Simplify,clarify,and Modernize the Law Governing Commercial Transactions,the UCC Permits

question 38

Multiple Choice

To simplify,clarify,and modernize the law governing commercial transactions,the UCC permits the use of "open terms" in sales contracts.In the use of "open terms," which of the following is true?

• A) The court will use market value and other comparable sales to determine what a reasonable price would have been at the time of delivery if the parties have not settled the price in the contract.
• B) If time of payment is not mentioned in the contract, payment within a commercially reasonable time is presumed.
• C) If the contract permits the buyer or seller to determine the price during contract performance, the UCC requires the party to do so in good faith.
• D) All of the above are true.

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Definitions:

Corporate Income Tax

Taxes levied on the profits earned by corporations, which vary by country and influence companies' financial strategies.

Excise Taxes

Taxes levied on the sale of specific goods and services, such as gasoline, cigarettes, and alcohol.

Fiscal Year

A fiscal year is a one-year period that companies and governments use for accounting purposes and preparing financial statements, which does not necessarily align with the calendar year.

Social Security Tax

Taxes collected to fund the Social Security program, providing benefits for retirement, disability, and survivors.