If, When Considering a Contract Under the UCC, the Court

question 62

Multiple Choice

If, when considering a contract under the UCC, the court needs to resolve a term that is not clearly specified, the courts prefer to look to:

• A) past dealings of the party
• B) equitable resolutions
• C) Department of Commerce data
• D) reliance damages
• E) none of the other choices

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Definitions:

Capital Deficiency

A financial situation where a company's liabilities exceed its assets, indicating potential difficulties in covering its debts.

Capital Balances

The amounts in a business's equity accounts that represent the owners' stakes in the company.

Noncash Assets

Assets owned by a business that cannot be easily converted to cash, such as property, plant, and equipment.

Loss on Realization

A financial loss recognized when liquidating assets yields less value than initially recorded on the books.