Your cousin,who is a CPA,calls you and says that a client paid him in diamonds and he's selling them.If you purchase one of those diamonds,at the time of the sale your cousin would be considered a merchant of those diamonds.

Question

Quizplus · Accepted Answer

Under the Uniform Commercial Code (UCC), a merchant is defined as someone who deals in goods of the kind or otherwise by his occupation holds himself out as having knowledge or skill peculiar to the practices or goods involved in the transaction. Since your cousin is a CPA and not regularly dealing in diamonds or claiming to have special knowledge in them, he would not be considered a merchant of diamonds.

Your Cousin,who Is a CPA,calls You and Says That a Client