In Which of the Following Situations Is the Seller a Merchant

question 21

Multiple Choice

In which of the following situations is the seller a merchant under Article 2 of the UCC?

• A)Paul,a full-time college student,sold his textbooks to State Bookstore.
• B)Randall,a part-time college student and full-time father,sold his textbooks to a friend.
• C)Zompa Inc. ,a toy manufacturer,contracted to sell dolls to TonTon Department Store.
• D)Mabel,a stay-at-home mom,sold her car to her friend Gloria.

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Definitions:

Market Interest Rate

The prevailing rate of interest determined by supply and demand in the financial markets.

Straight-Line Method

A method of depreciation that allocates an equal amount of the depreciable cost of an asset to each year of its useful life.

Carrying Value

The net amount at which an asset or liability is reported on the balance sheet, calculated as original cost minus any depreciation, amortization, or impairment costs.

Common Stock

A type of security that represents ownership in a corporation, with holders having a claim on the company's earnings and assets.