Which of the following is the correct regarding Good Wood's contention that the duty of good faith is imposed on all parties equally?
A) Good Wood is incorrect because the UCC imposes no duty of good faith.
B) Good Wood is incorrect because the UCC mandated duty of good faith requires honesty in fact in regard to all transactions regardless of the parties involved.
C) Good Wood is incorrect because the UCC mandated duty of good faith imposes a higher duty than honesty of fact in regard to sellers, that of reasonable negotiation considering the position of buyers.
D) Good Wood is incorrect because the UCC mandated duty of good faith imposes a higher duty than honesty of fact in transactions involving amounts in excess of $500, that of reasonable conduct considering all circumstances.
E) Good Wood is incorrect because the UCC mandated duty of good faith imposes a higher duty than honesty in fact on merchants, that of reasonable commercial standards of fair dealing.

Question

Quizplus · Accepted Answer

UCC Section 1-203 requires good faith in the performance and enforcement of every contract. Good faith means honesty in fact. When the parties are merchants, the UCC imposes a higher standard. Between merchants, the UCC imposes not only honesty in fact but also reasonable commercial standards of fair dealing. This second requirement is often called commercial reasonableness.

Which of the Following Is the Correct Regarding Good Wood's