Question

Wallace wanted baseball caps with the name of the firm of which he was president, ABC Corporation, emblazoned on the front. Fran, a merchant in specialized goods, orally agreed with Wallace that she would sell to him 200 baseball caps at $5 each. No writing was ever made although there were a number of witnesses to the conversation. After the caps were finished, but before they were shipped, Wallace called to cancel the order because his firm had just announced a merger and would no longer be known as ABC Corporation. Fran told him to forget cancelling the contract because she had just finished the caps. Wallace told Fran that she should have been smarter and had him sign something because without a writing, she does not have a chance in court. Fran was also having a problem with another customer, a father who wanted t-shirts with his family name put on them for a family reunion. Fran had sent a confirming letter to the dad. Twenty days later the dad called and told her that there was a big feud, the reunion was cancelled, and that he was cancelling the order. She believes that the father should pay damages and that it is just that he do so because a big family was involved and the sale was substantial. Finally, Fran plans on taking to small claims court a merchant customer who orally ordered 500 plain t-shirts at a cost of $5 each but has not picked them up. Which of the following is true regarding Fran's assertion that she should be allowed to recover from the father?

		Based upon the facts given, Fran cannot recover because the father, who was not a merchant in regards to the transaction and had not signed anything showing that he was to be charged for the shirts.
		Fran can recover because she sent the father a confirming letter.
		Fran can recover because specialized goods are involved.
		Fran can recover only because specialized goods are involved and she had also sent the father a confirming letter.

Answer 1

The correct option should be - "Fran can recover because specialized goods are involved."

Note that this is a specialized good as the four-part test of 2-201(3)(a).

• It is specially made for the buyer
• It cannot be used by any other buyer
• The seller has started manufacturing the good (which is assumed true in this case because 20 days have passed).
• The seller must have manufactured before the order cancellation.

The confirmation letter i.e. writing requirement of UCC will not hold in case of specialized goods.