Why Does Article 2 Hold Merchants to a Higher Standard

question 3

Multiple Choice

Why does Article 2 hold merchants to a higher standard than nonmerchants?

• A) Because buyers tend to place more reliance on merchants.
• B) Because merchants are not required to observe reasonable commercial standards of fair dealing.
• C) Because the Code gives more weightage to technical requirements such as consideration.
• D) Because the Code does not recognize the concept of an unconscionable contract between a merchant and a buyer.

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Definitions:

Premium Rate

The price of an insurance premium per unit of coverage, often expressed in terms of monthly or annual cost.

Premium Rate

The price of an insurance policy, typically quoted as a cost per hundred or thousand dollars of coverage.

Annual Premium

Annual Premium refers to the amount paid yearly for an insurance policy to keep it active and provide coverage.

Short-rate Refund

A refund of a portion of a premium on an insurance policy, calculated using a method that is less than pro-rata, often involving a penalty for early cancellation.