The UCC imposes a higher degree of good faith on a merchant seller or buyer of goods than on a nonmerchant seller or buyer of goods.

Question

Quizplus · Accepted Answer

The UCC imposes a higher degree of good faith on merchant sellers or buyers because they have special knowledge or expertise in the goods they are dealing with. This higher degree of good faith is known as the "implied duty of good faith and fair dealing," which requires merchants to act honestly and fairly in their dealings with other parties. Nonmerchant sellers or buyers are not subject to the same degree of good faith under the UCC.

The UCC Imposes a Higher Degree of Good Faith on a Merchant