How does the Uniform Commercial Code (UCC) define merchant? Why does the UCC distinguish between merchants and nonmerchants?
What will be an ideal response?
The UCC defines merchant on a case-by-case basis. If a person regularly deals in the kind of goods being sold, or pretends to have some special knowledge about the goods, or employs an agent in the sale who fits either of these two descriptions, that person is a merchant for the purposes of the contract in question. Some sections of the Code impose a higher standard of behavior on "merchants" than on nonmerchants in recognition of the fact that buyers tend to place more reliance on professional sellers and that professionals are generally more knowledgeable and better able to protect themselves than nonprofessionals.
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