Asked by Camryn Morrow on Apr 27, 2024
Verified
The Uniform Commercial Code's definition of good faith is strictly a subjective standard.
Good Faith
An honest intention to act without taking an unfair advantage over another party, typically in negotiations or contracts.
Subjective Standard
A legal benchmark that varies based on an individual's personal views, feelings, or experiences rather than objective facts or evidence.
- Learn the definitions and standards of good faith and value within the context of the Uniform Commercial Code.
Verified Answer
JD
Jarrod DavisApr 30, 2024
Final Answer :
False
Explanation :
The Uniform Commercial Code's definition of good faith is somewhere between a subjective standard and an objective standard.Uniform Commercial Code Section 3-103(a)(4)defines good faith as "honesty in fact and the observation of reasonable commercial standards of fair dealing." Therefore,to act in good faith,a holder must not deviate from the reasonable commercial standards of fair dealing.
Learning Objectives
- Learn the definitions and standards of good faith and value within the context of the Uniform Commercial Code.