Certification in Supplier Diversity Practice Exam

Who is defined as a merchant under the Uniform Commercial Code?

1. Any individual selling goods

2. A person selling goods with no special knowledge

3. A person who deals in goods and holds expertise in their transactions

4. Any person involved in retail sales

The correct answer is: A person who deals in goods and holds expertise in their transactions

A merchant, as defined under the Uniform Commercial Code (UCC), is specifically a person who deals in goods of the kind involved in the transaction or holds themselves out as having particular knowledge or skill regarding those goods. This definition emphasizes not just the act of selling goods, but also the experience and knowledge a merchant possesses in relation to those goods. Being a merchant implies that the individual is engaged in regular transactions and possesses expertise that others may not have. For instance, a wholesaler, retailer, or even an individual who specializes in a particular category of goods can be considered a merchant as long as they demonstrate the necessary expertise in dealing with those goods. In contrast, the other options describe individuals who may sell goods but do not meet the criteria outlined in the UCC for being classified as a merchant. Simply being involved in sales does not confer merchant status if that individual lacks the special knowledge or expertise associated with those goods. This distinction is important in various legal implications and how contracts involving merchants may differ from those involving non-merchants under the UCC.