QUESTION 24 The UCCs good faith provision O a in the case of

QUESTION 24 The UCC\'s good faith provision O a in the case of a merchant means honesty in fact O b. in the case of a merchant means honesty in fact plus the observance of reasonable commercial standards O C can be disclaimed through agreed upon contract provision o d. Both b and c are correct QUESTION 25 f a contract contains elements of both a service and a good O a The UCc says such a contract is always considered a sale of a good and thus subject to the UCC o b. The UCC says such a contract is always considered a service and thus not subject to the UCC O C. The UCC says such a contract wil be decided by applying the Predominant Thrust Test o d The UCC sars sucha contract will be decided by applyng the Performance Tendered Test QUESTION 26 On june 1, Beckham Regional Ford L.C, a Ford dealership, offered to sell a 2016 Ford Mustang for $30,000 to EB. Beckham signs a written assurance to keep that offer open to EN until july 15. On july 6, Beckham sold the car to another more for another Mustang, Eli sues Beckham for $3000 buyer. On July 15, En tenders $30,000 to Beckham for the car. Because Beckham sold the car and Elil had to pay $3000 a. Because Eli did not give consideration for the promise to keep the offer open. Beckham will win b. Because 30 days has passed. Beckham will wn OC Because Elilis not a merchant, Beckham will win. o d. This is a firm offer and Beckham will lose

Solution

Question 24 -

Answer - Option B.

In Section 1-201 of the Uniform Commercial Code, good faith is generally defined as \"honesty in fact in the conduct or transaction concerned\". Further, Article 2 of the Uniform Commercial Code says “good faith in the case of a merchant means honesty in fact and the observance of reasonable commercial standards of fair dealing in the trade.”

Question 25

Answer - Option A

As per UCC, if a contract involves providing both good and service, then the UCC applies if the purpose of the contract is primarily the ale of the goods. However, in case the primary purpose of the contract is the installation of the goods, it is service and shall be governed by common law.

Question 26

Answer - Option D

The UCC firm offers rule applies to offers for sale or lease of goods made by a merchant, in this case, Beckham Regional Ford LLC. A firm offer exists here as Beckham Regional Ford LLC gives assurances in a signed writing their offer will remain open. A firm offer is irrevocable without the necessity of consideration for the stated period or, if no definite period is stated, for a reasonable period (neither to exceed three months). Here Beckham Regional Ford LLC has breached the contract he had stated to Eli. Beckham Regional Ford LLC did this by selling the car to another party during the period specified in his written offer. Beckham Regional Ford LLC would not have breached the contract with Eli if Beckham Regional Ford LLC waited till July 15th to sell the car, or if Beckham Regional Ford LLC made a verbal contract with Eli. By singing the paper it became a legal document of proof to the buyer who had the opportunity to buy the car without anyone trying to also take a bid in buying the car.

Hence. Beckham Regional Ford LLC is in breach of contract and is responsible.