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Assignment: Read the following scenario questions and briefly answer EACH in minimum 50-75 words.

Assignment:

Read the following scenario questions and briefly answer EACH in minimum 50-75 words.

 

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  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.  Is Joe right? (Assume for the purposes of this question only that the sale of stock is covered by Article 2.)

 

  1. Andy buys a new jet-ski from the local Kawaskai dealership. Andy takes the jet-ski home with him. The next day, during Andy’s first use of the jet-ski, it breaks down almost immediately in the middle of the bay. Andy returns the jet-ski to the dealer and demands his money back. The dealer refuses to refund his money, claiming that he has accepted the jet-ski and thus is liable to pay the purchase price. Has Andy accepted?
  2. Where a tender has been accepted, the buyer must notify the seller within a reasonable time of any breach that the buyer should have discovered or be barred from any remedy for that breach.  Is this statement correct?  Explain your answer, including the applicable UCC sections.
  3. If the time for performance has not yet expired, the seller may seasonably notify the buyer of his intent to cure, and then make a conforming delivery provided that the seller had reasonable grounds for believing that the non-conforming tender would be acceptable. Is this statement correct?  Explain your answer, including the applicable UCC sections.
  4. John advertises a kitchen table and chairs for sale in the newspaper classifieds. Larry answers the ad, and comes over to pick up the furniture and pay for it. After Larry has paid John, he realizes that none of the furniture will fit in the back of his car. So Larry leaves the furniture in place and decides to quickly borrow a truck from a friend and return. However, during the interim, the furniture is destroyed when John’s house burns down. Larry demands a refund of his payment. John refuses. Is Larry entitled to a refund?
  5. Evidence of course of dealing or usage of trade may not be offered to explain or supplement a confirmatory memorandum, which was intended by the parties to be the final and complete expression of the parties’ agreement.  Is this statement correct?  Explain your answer, including the applicable UCC sections.

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