13 multiple choice 1 point to simplify, clarify, and modernize the law governing commercial transactions…

13 multiple choice 1 point to simplify, clarify, and modernize the law governing commercial transactions, the ucc permits the use of open terms in sales contracts. in the use of open terms, which of the following is true? the court will use market value and other comparable sales to determine what a reasonable price would have been at the time of delivery if the parties have not settled the price in the contract. if time of payment is not mentioned in the contract, payment within a commercially reasonable time is presumed. if the contract permits the buyer or seller to determine the price during contract performance, the ucc requires the party to do so in good faith. all of the above are true.

13 multiple choice 1 point to simplify, clarify, and modernize the law governing commercial transactions, the ucc permits the use of open terms in sales contracts. in the use of open terms, which of the following is true? the court will use market value and other comparable sales to determine what a reasonable price would have been at the time of delivery if the parties have not settled the price in the contract. if time of payment is not mentioned in the contract, payment within a commercially reasonable time is presumed. if the contract permits the buyer or seller to determine the price during contract performance, the ucc requires the party to do so in good faith. all of the above are true.

Answer

Brief Explanations:

  • For the first option: Under UCC (Uniform Commercial Code), when price is an open term, courts do use market value and comparable sales to determine a reasonable price at delivery time if not set in the contract. This is in line with UCC's goal of making commercial transactions workable even with some open - endedness.
  • For the second option: The UCC has a default rule that if the time of payment is not specified in a sales contract, payment within a commercially reasonable time is assumed. This helps in filling the gap in contracts without unduly burdening the parties.
  • For the third option: If a party (buyer or seller) is given the power to determine the price during contract performance (an open - term situation), the UCC mandates that this be done in good faith. Good - faith requirements are a cornerstone of UCC contract law to prevent abuse.

Since all three statements are in accordance with UCC rules regarding open terms in sales contracts.

Answer:

All of the above are true.