Choice "C" is correct. The UCC imposes an obligation of good faith on both parties to a contract. For merchants, this includes the duty to observe reasonable commercial standards.
Choice "d" is incorrect. Under the parol evidence rule, a merchant would not have to adhere to oral statements made before a written contract was made if the written contract appears to be a total integration of the entire deal.
Choice "b" is incorrect. A merchant need not go beyond the warranties required by law.
Choice "a" is incorrect. There is no rule requiring merchants to sell at the lowest prices.