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Module 4 Assignment

Student Name
Institution
Course
Tutor
Date
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Module 4 Assignment

1. The transaction between Brandt and the Sarah Bush Lincoln Health Center is for the

provision of services. Article 2 defines transactions in goods as “all things including

specially manufactured goods, which are moveable at the time of identification to the

contract for sale (Brandt v. Boston Scientific Corp., 2003).” Therefore, for this

transaction to involve goods, the service needs to occur incidentally. However, in this

case, the hospital needed to complete the service but needed the product. Moreover, the

transaction is a mixed contract because the facility provided services such as the

operating room and the installation of the good (Brandt v. Boston Scientific Corp., 2003).

Therefore, the predominant item provided by the hospital is a service, not a good.

The professionals at Sarah Bush Lincoln Health used the sting to augment their service to

meet the patient’s needs. Regardless, from the definition by Article 2, the item offered by

the hospital is not service since it is not a manufactured product that is moveable at the

identification of the contract (Brandt v. Boston Scientific Corp., 2003). Instead, the

services were offered within the organization’s premises, which included the product that

would later result in significant health complications for Brandt. Thus, Article 2 renders

the service viewpoint null since the transaction did not involve the movement of goods in

one way or the other. Additionally, the health center predominantly provides healthcare,

using medicines and other tools as means to an end (Brandt v. Boston Scientific Corp.,

2003). Therefore, the firm can use products from other manufacturers to ensure that

patients receive the best of care while under the supervision of the health center’s

employees. Ultimately, the liability for any harm caused by the procured goods is the

manufacturer’s fault, not the healthcare facility.

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2. A) The entrustment rule provides that the merchant in possession of goods in which they

deal can transfer all the rights of the entruster to any buyer in any transaction (Legal

Information Institute, 2023). In this case, Executive Financial Services entrusted the

tractors to Mohr-Loyd Leasing. Therefore, Mohr-Loyd Leasing had the power to act in

any manner with the tractors as would EFS. However, Mohr-Lord needed to consider

EFS’s needs when acting upon the entrustment rule.

B) Mohr and Loyd did not act ethically in this case since they used a separate firm to sell

the tractors. EFS entered into an entrusting agreement with a separate firm, Mohr-Loyd

Leasing and not the Tri-County Farm Company. Contravening the lease meant that Mohr

and Loyd prioritized their personal interest instead of honoring the agreement. For

instance, they sold the tractor through Tri-County to EFS. However, after entering a lease

agreement with Mohr-Loyd, Mohr and Loyd used Tri-County to lease the tractor farmers.

The refusal to honor the lease agreement and sell the tractors is unethical since it

contravenes a contract. Mohr and Loyd intended to make money from their presumed

ownership of the tractors, resulting in their resale even though EFS still owned the

tractors.

C) EFS owns the tractors since it bought it from Tri-County Farm Company. Moreover,

the leasing agreement it entered with Mohr-Loyd Leasing did not fully cede ownership to

the latter. Instead, it granted Mohr-Loyd the operational rights to the tractors with EFS

maintaining the ownership rights, making them liable for anything that occurs concerning

the tractors. The EFS decided to maintain ownership of the tractors but entrust it to Mohr

and Loyd through their leasing firm to ensure that the tractors are operational. Therefore,
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Mohr-Loyd Leasing owned the operational rights of the vehicles while EFS maintained

ownership.

3. A) The legal requirement one needs to meet is a state of undue hardship such that

repayment of the debt interferes with their budget (Watson, 1989). Undue hardship is a state

where one is unable to cater to their needs after fulfilling every other financial obligation.

Ultimately, they retain some money for sundry expenses without the threat of bankruptcy.

Reaching this state implies that one cannot fulfil their financial obligations to lenders without

forfeiting essential needs such as rent, food or other important expenses such as bills.

B) Yes, he acted unethically since the court could not establish that he was bankrupt. Wayne

earned enough money and still received adequate support from his parents. Therefore, he could

afford basic necessities and still pay his installments to creditors. Granted he made payments for

his former wife’s car, health insurance and child support. These payments did not interfere with

his ability to pay rent whilst his parents provided grocery to ensure he had food every month. He

tried to insist that he reached the legal point of undue hardship to ensure he was exempted from

paying the debt until the court determined otherwise.

C) His loan should not be discharged in bankruptcy. Wayne is capable of paying the debt

since paying it will not interfere with his lifestyle. He already services his payments such as car

payments for his former wife, child support fees and insurance. Moreover, he receives support

from his parents such that he can afford decent meals and clear his rent on time. Discharging the

loan would mean that he abandons his duty in clearing the student debt, placing significant strain

on the body that provided the funds, limiting the access of future students to similar services.

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4. Any financing settlement filed in the debtor’s trade name instead of its corporate name is

ineffective because it is misleading and ineffective in completing a security interest in the

collateral needed in the company’s financial statement (In re FV Steel and Wire Co,

2004). Therefore, searching for the company on any database could frustrate any effort to

paint a clear picture of the company’s state. PSC recognized the company’s legal name

before entering into an agreement. Article 9 insists on the vitality of recognizing the

debtor’s correct legal name (In re FV Steel and Wire Co, 2004). Therefore, while PSC

knew the corporate name, its ignorance of the correct legal name proved perilous. The

risk relies on the technicality of the name change since they represent two separate

identities in the different databases that record its presence. Keystone Consolidated

Industries Inc. and Keystone Steel & Wire Co. are two distinct firms, each with its own

assets (In re FV Steel and Wire Co, 2004). Article 9 considers financial statements filed

in the corporate name misleading since any search will not reveal the financial statement.

Therefore, the burden transfers to the creditor with the misspelled files.

Using the debtor’s trade name instead of its corporate name is detrimental to the creditor by

making them unsecured. Article 9 recognizes the discrepancy caused by using two different

names, resulting in a legal quagmire that might eliminate the importance of any financial

statements presented in any legal scenario. The creditor becomes financially unsecured since it

might seem like it is filing a claim against another separate entity. Ultimately, it becomes

complex to file a strong claim for one’s assets regardless of the case.
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References

Brandt v. Boston Scientific Corp., (2003). Retrieved April 12, 2023, from

https://law.justia.com/cases/illinois/supreme-court/2003/93982.html

In re FV Steel and Wire Co.. Legal research tools from Casetext. (2004, May 25). Retrieved

April 12, 2023, from https://casetext.com/case/in-re-fv-steel-and-wire-co

L. CHANDLER WATSON, J. (1989, October 4). In re doyle. Legal research tools from

Casetext. Retrieved April 12, 2023, from https://casetext.com/case/in-re-doyle-19?

resultsNav=false

Legal Information Institute. (2023). § 2-403. power to transfer; good faith purchase of goods;

Legal Information Institute. Retrieved April 12, 2023, from

https://www.law.cornell.edu/ucc/2/2-403