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4 Uniform Commercial Code Questions

1. Discuss whether Article 2 applies to a blood transfusion given during an operation. Assume for the purposes of this question that the patient will have to pay for the blood supply.

2. On Tuesday, a hobby shop owner receives an order for a custom toy train that will need to be specially manufactured. That same day, the hobby shop owner begins building the toy train. On Friday, the buyer calls to cancel the order. During the conversation, the hobby shop owner insists on going through with the deal, and tells the buyer (for the first time) that he has already started making the train. Is the buyer legally bound by a contract to buy the toy train? Use UCC Article 2 sections to support your answer.

3. Toro Lawnmoker sells "Ride-Along" mowers for $500 each wholesale. On September 15th, Johnson Hardware Co. placed a telephone order with Toro Lawnmaker Co. for 100 "Ride-Along" mowers for delivery the following week. When the mowers did not show up on time, Johnson called Toro to inquire as to their status. Toro replied that there was no contract. Is the contract enforceable? Explain.

4. StockNet, Inc. is an Internet based company that provides full service securities transactions to customers by e-mail and the World Wide Web. Periodically, StoctNet posts the following advertisement on the web to stimulate immediate business from new customers.

"StockNet, a leader of Internet stock trading, invites new clients to make a one-time stock purchase at no commission if the order is placed electronically through the World Wide Web at: http://www.stocknet.com before the close of the market today."

Joe Netsurfer sees the post, and calls the broker by telephone and says that he would like to purchase 100 shares of IBM. When he gets the purchase order confirmation from StockNet, it includes a charge for commission. Joe is upset and refuses to pay the commission, insisting that StockNet is contractually bound to waive the commission fee based on the advertisement. (Assume for the purposes of this question only that the sale of stock is covered by Article 2.)

Is Joe right?

Solution Preview

Discuss whether Article 2 applies to a blood transfusion given during an operation. Assume for the purposes of this question that the patient will have to pay for the blood supply.

In reference to blood transfusions, the states have overwhelmingly ruled that these are considered services instead of the sale of goods, which relieves suppliers and hospitals of any burdens of liability associated with contracts. Therefore, Article 2 doesn't apply in this scenario.

On Tuesday, a hobby shop owner receives an order for a custom toy train that will need to be specially manufactured. That same day, the hobby shop owner begins building the toy train. On Friday, the buyer calls to cancel the order. During the conversation, the hobby shop owner insists on going through with the deal, and tells the buyer (for the first time) that he has already started making the train. Is the buyer legally bound by a contract to buy the toy train? Use UCC ...

Solution Summary

Questions ranging from blood transfusions to ride-along mowers. 623 words total, with reference.

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