Which Statement Is True Regarding Kristin's Claim That the UCC

question 77

Multiple Choice

Which statement is true regarding Kristin's claim that the UCC imposes no obligation of good faith conduct?

• A)Kristin is incorrect.
• B)Kristin is correct only if she can establish that Solid Wood Furniture itself failed to act in good faith.
• C)Kristin is correct in this instance because while the UCC generally imposes a duty of good faith,that duty is inapplicable in relation to third-party financing.
• D)Kristin is correct only if she can establish that the goods were overpriced resulting in the right to disregard any obligation of Solid Wood.
• E)Kristin is correct in this instance because while the UCC generally imposes a duty of good faith,that duty is inapplicable during the initial 30 days after a purchase when a buyer has the right to revoke acceptance for a good or a bad reason.

---

Definitions:

Cash Flows

The sum of funds being moved in and out of a company, particularly influencing its ability to meet short-term obligations.

GAAP

Generally Accepted Accounting Principles, the standard framework of guidelines for financial accounting used in any given jurisdiction.

IFRS

International Financial Reporting Standards, a set of accounting rules and standards that define how transactions and other accounting events should be reported in financial statements. They are designed to be globally consistent to enhance international comparability and quality of financial statements.

Cash Flow Reporting

A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, breaking the analysis down to operating, investing, and financing activities.