Which statement is NOT a feature of a firm offer under the UCC?

Which statement is NOT a feature of a firm offer under the UCC?

• A. Made by a merchant in a signed writing.
• B. Specified time or a reasonable time.
• C. No more than three months.
• D. It requires consideration to keep open.

Answer: (D)

Under the UCC, a firm offer is a promise by a merchant to keep an offer to sell or buy goods open for a stated period or for a reasonable time, without the need for consideration. The key elements are: it must be made by a merchant, it must be in a signed writing, and it must give assurance that it will be held open. The period can be a specific time or a reasonable time, but in no event can it exceed three months. The statement about needing consideration to keep the offer open is not part of the firm offer rule. No consideration is required to keep the offer open, which is what makes a firm offer different from a typical, revocable offer. So the statement that requires consideration to keep the offer open is not a feature of a firm offer. The other statements describe features that do apply: merchant, signed writing, and a time frame up to three months.

Under the UCC, a firm offer is a promise by a merchant to keep an offer to sell or buy goods open for a stated period or for a reasonable time, without the need for consideration. The key elements are: it must be made by a merchant, it must be in a signed writing, and it must give assurance that it will be held open. The period can be a specific time or a reasonable time, but in no event can it exceed three months.

The statement about needing consideration to keep the offer open is not part of the firm offer rule. No consideration is required to keep the offer open, which is what makes a firm offer different from a typical, revocable offer.

So the statement that requires consideration to keep the offer open is not a feature of a firm offer. The other statements describe features that do apply: merchant, signed writing, and a time frame up to three months.