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Nonmerchants, Fraud, and the Future

Could you please answer these three questions?

First question :

Under the UCC merchants are held to a higher standard than nonmerchants. Why does the Code do this? Is it fair to require a higher standard of merchants than of nonmerchants? Should additional protections be given to nonmerchants under the Code?

Second question:

From an ethical perspective, is it fair for a holder in due course to protect himself from personal defenses such as failure of consideration or fraud in the inducement? Why?

Third question:

Futurists like to talk about a future cashless, checkless society. What ethical issues are raised by a society that operates without cash or checks?

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1 The word "Merchant" is defined by § 2-104 of the UCC as a person that deals in goods of the kind or otherwise holds itself out by occupation as having knowledge or skill peculiar to the practices or goods involved in the transaction.

Merchants treated differently by the UCC because the UCC recognizes that the merchant is experienced and has a special knowledge of the relevant commercial practices.

For instance, a requirement in a sale contract is Good Faith. The UCC imposes a duty of good faith in the performance of all contracts.
For non-merchants, good faith means honesty-in-fact. For a merchant, good faith means honesty-in-fact, plus the exercise of reasonable commercial standards of fair dealing.

I think it is fair that merchants be held to a higher standard, ...

Solution Summary

The expert examines nonmerchants, fraud and the futures.