Perry and Tim Negotiate a Contract Governed by the UCC

question 73

Multiple Choice

Perry and Tim negotiate a contract governed by the UCC.Perry is worried about being sued,so Perry and Tim negotiate an agreement wherein each will only have 16 months to pursue a claim for breach.Tim,claiming the UCC gives him four years to sue,files a claim after three years.Can Tim go forward with his claim?

• A)No,because parties to a contract are never allowed to negotiate on the statute of limitations.
• B)Yes because the UCC does allow him four years and parties cannot change that.
• C)Yes,because the UCC allows him four years and parties can only extend the UCC statute of limitations,not shorten it.
• D)It depends upon the contract terms.
• E)No because buyers and sellers are free to negotiate contractually a shorter time period than the UCC's four year statute of limitations.

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Definitions:

Proportional

Relating to or denoting a relationship where elements vary together at a constant rate and a change in one element results in a corresponding change in another.

Regressive

A term describing a tax system where the tax rate decreases as the taxable amount increases, placing a greater relative burden on lower income earners.

Form 1040EZ

A simplified tax form for individuals with uncomplicated tax situations, previously used to report income to the IRS.

Married Filing Jointly

A tax filing status for married couples who choose to file a single tax return together, combining their incomes and deductions.