Revised Article 3 adopts a definition of good faith that has both a subjective and an objective component.

Question

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Revised Article 3 of the Uniform Commercial Code (UCC) does adopt a definition of good faith that has both a subjective and objective component. The subjective component relates to the honesty and sincerity of the party's actions, while the objective component considers whether the party acted in a commercially reasonable manner.

Revised Article 3 Adopts a Definition of Good Faith That