Under Section 2-209 of the UCC,agreements to Modify Existing Contracts

question 30

Multiple Choice

Under section 2-209 of the UCC,agreements to modify existing contracts for the sale of goods:

• A)need new consideration to be binding.
• B)need no new consideration to be binding.
• C)require parties to formally terminate their original agreement and start over.
• D)requires just an informal agreement to be enforced.

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Definitions:

Average Inventory

An accounting metric that estimates the value or quantity of a company's inventory over a specified time period.

Carrying Cost

Carrying cost refers to the total cost of holding inventory, including storage, insurance, taxes, opportunity costs, and depreciation.

Order Cost

The administrative and logistical expenses associated with making and processing an order for goods or services.

Economic Order Quantity

An inventory management formula that determines the ideal order size to minimize the costs of holding and ordering inventory.