When Compared with Traditional Contract Law, the Uniform Commercial Code

question 49

Multiple Choice

When compared with traditional contract law, the Uniform Commercial Code (UCC) :

• A) reflects a less flexible attitude.
• B) is more likely to find that parties have a contract.
• C) gives more weight to technical requirements such as consideration.
• D) is less concerned with rewarding people's legitimate expectations.

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Definitions:

Treasury Stock

Shares of a company's own stock that it has reacquired from shareholders and holds, reducing the amount of outstanding stock on the open market.

Contributed Capital

The total value of all monetary and non-monetary assets that shareholders have provided to a company in exchange for shares of stock.

Cost Method

An accounting approach for investments, where the investment is recorded at its original purchase cost without subsequent change for market value fluctuations.

Treasury Stock Transactions

The buying, selling, or re-issuance of a company's own shares that were previously outstanding but were repurchased.