Quiz #1
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.

Yes, Article 2 applies. Section 2-105, a good is defined as “all things” which are movable at the time of identification to the contract for sale. In this scenario the good is the blood itself and the transfusion would be considered a service. In section 2-106(1), a sale consists in the passing of the title from the seller (hospital) to the buyer (patient) for a price. Also stated in Article 2 is an upfront or single payment is an indication of a sale of goods. And a blood transfusion meets all criteria.

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.

Yes, the buyer is legally bound by a contract to the buy the train. Section 2-201(3)(a) states that a contract is valid, “if the goods are to be specially manufactured for the buyer and are not suitable for sale to others in the ordinary course of the seller’s business and the seller, before notice of repudiation is received and under circumstances which reasonably indicate that the goods are for the buyer, has made either a substantial beginning of their manufacture or commitment for their procurement.” Since, the toy train is custom is would be considered specially manufactured. Also, because the hobby shop owner began making the custom toy train the