If There Is No UCC Rule Governing a Particular Contract

question 34

Multiple Choice

If there is no UCC rule governing a particular contract problem:

• A)freedom of contract is obtained.
• B)unconscionable contract is assumed.
• C)unjust enrichment is assumed.
• D)the common law is applicable.

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Definitions:

Goodwill Impairment

A decrease in the value of a company's goodwill, indicating that the value of acquired assets has fallen below their original cost.

Income Tax Reassessment

The process by which tax authorities review and possibly adjust the amount of income tax payable by an individual or corporation following the submission of tax returns.

Capital Asset

Long-term property or investment that is not easily sold or exchanged for cash without a substantial loss in value.

Consolidated Retained Earnings

The accumulated profits of a corporation and its subsidiaries after dividends have been paid out to shareholders.