Final answer:
Under the UCC, if a price is not set in a sales contract, the price will be a reasonable price based on fair market value at the time of delivery. The statement claiming the contract is not valid due to indefinite terms is false. The UCC allows a contract for sale to stand even without a set price, provided there is a reasonable basis for remedy.
Step-by-step explanation:
Under the Uniform Commercial Code (UCC), if a contract for the sale of goods is made but the price is not established, the UCC provides guidance on what the price should be. If the parties intended to form a contract and there is a reasonably certain basis for giving an appropriate remedy, the contract for sale does not fail for indefiniteness because the price is not settled. In such a case, the price is a reasonable price at the time for delivery if nothing is said as to price or if the price is left to be agreed upon and they fail to agree, or if the price is to be fixed in terms of some agreed market or other standard as set or recorded by a third party or agency and it is not so set or recorded.
Therefore, the correct statement regarding the options given would be the first one, that the price will be the reasonable price based on fair market value of the goods at the time of delivery. It is not solely in the hands of the seller or the buyer to determine the price when it has not been established in the contract. Answer 2 suggesting that the seller has complete freedom to set any price is incorrect, as is answer 3 which states that the buyer has the right to establish the price. Answer 4 is incorrect because a contract is not automatically invalid for indefiniteness in terms of price under the UCC.