A standard determined in terms of the business judgment of reasonable persons familiar with the practices customary in the type of transaction involved and in terms of the facts and circumstances of the case is:
A)good faith.
B)a subjective standard.
C)commercial reasonableness.
D)None of the above.

Question

Quizplus · Accepted Answer

This standard is known as the commercial reasonableness standard and is commonly used in commercial transactions. It requires that the actions taken by parties involved in a transaction be reasonable and common within the industry or market involved. It is an objective standard that considers the facts and circumstances of the case but does not rely solely on subjective judgments.

A Standard Determined in Terms of the Business Judgment of Reasonable