How long is a merchant's firm offer to keep an offer open irrevocable under the UCC?

• A. Up to three months.
• B. As long as the merchant desires.
• C. Indefinitely.
• D. Only until the buyer revokes.

Answer: (A)

The key idea is that a merchant’s firm offer to keep an offer open is irrevocable only for a short, fixed period under the UCC. Under the UCC, when a merchant makes a signed writing promising to hold the offer open, that offer cannot be revoked during the time stated, and if no time is stated, it can’t be revoked for a reasonable time. In any event, that irrevocable period may not exceed three months. So the maximum time an otherwise firm offer remains open is three months.

That’s why Up to three months is the correct answer. If no time is specified, the period is a reasonable time not exceeding three months. The other options imply longer or unlimited irrevocability, which the UCC does not allow for firm offers.