Under the UCC, a merchant's firm offer to keep an offer open is binding without consideration if the offer is in writing, signed by the merchant, and states that it will be held open, for up to three months.

Under the UCC, a merchant's firm offer to keep an offer open is binding without consideration if the offer is in writing, signed by the merchant, and states that it will be held open, for up to three months.

• A. It must be in writing, signed by the merchant, states it will be held open, and is for up to three months.
• B. It must be in writing, signed by the merchant, states it will be held open, and is for up to six months.
• C. Oral firm offers can be binding for up to three months.
• D. Firm offers do not exist under the UCC; consideration is always required.

Answer: (A)

The main idea is that under the UCC, a merchant’s firm offer to keep an offer open binds without consideration if it is written, signed by the merchant, and states it will be held open for up to three months. This combination creates a non-revocable promise for the specified period, and if no time is stated, the period is a reasonable time not exceeding three months. The correct description matches all three elements and the three-month limit. The other statements fail for specific reasons: six months is too long without consideration; the UCC allows only up to three months unless there is additional consideration to extend it. Oral firm offers are not recognized as firm offers—the firm offer rule requires a written promise signed by the merchant. And firm offers do exist under the UCC; they do not require consideration to be binding for the stated period.

The main idea is that under the UCC, a merchant’s firm offer to keep an offer open binds without consideration if it is written, signed by the merchant, and states it will be held open for up to three months. This combination creates a non-revocable promise for the specified period, and if no time is stated, the period is a reasonable time not exceeding three months.

The correct description matches all three elements and the three-month limit. The other statements fail for specific reasons: six months is too long without consideration; the UCC allows only up to three months unless there is additional consideration to extend it. Oral firm offers are not recognized as firm offers—the firm offer rule requires a written promise signed by the merchant. And firm offers do exist under the UCC; they do not require consideration to be binding for the stated period.