Under the UCC, when the price is not agreed upon in a contract for the sale of goods, which statement is correct?

• A. The price must be fixed by the parties.
• B. The price can be determined by the seller in good faith at delivery.
• C. The contract is void for lack of price.
• D. The price must be determined by arbitration.

Answer: (B)

Open price term in the UCC allows the price to be left unsettled at contracting; when that happens, the price is fixed by a reasonable price at the time of delivery, determined in good faith by the seller. So, if the parties haven’t agreed on a price, the seller can set a price in good faith when delivering the goods, and that price will be the contract price. This keeps the deal moving without requiring renegotiation or a separate price determination.

The other options don’t fit because the UCC does not require a fixed price agreed by the parties, nor does it void the contract for lack of price. Arbitration is also not mandated to determine price.