The electric company argues that the electricity passing through the transmission wire was not being sold to Prince and that, therefore, there was no sale of goods to Prince. Is the contract covered by the Code? Explain.

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The electric company argues that the electricity passing through the transmission wire was not being sold to Prince and that, therefore, there was no sale of goods to Prince. Is the contract covered by the Code? Explain.

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While adjusting a television antenna beside his mobile home and underneath a high-voltage electric transmission wire, Prince received an electric shock resulting in personal injury. He claims the high-voltage electric current jumped from the transmission wire to the antenna. The wire, which carried some 7,200 volts of electricity, did not serve his mobile home but ran directly above it. Prince sued the Navarro County Electric Co-Op, the owner and operator of the wire, for breach of implied warranty of merchantability under the Uniform Commercial Code. He contends that the Code’s implied warranty of merchantability extends to the container of a product—in this instance the wiring—and that the escape of the current shows that the wiring was unfit for its purpose of transporting electricity. The electric company argues that the electricity passing through the transmission wire was not being sold to Prince and that, therefore, there was no sale of goods to Prince. Is the contract covered by the Code? Explain.

Answer & Explanation (1)

Explanation

For electric power to be considered as a good under the legal code it should be the following:

a thing
existent
movable

As a result, electric power is considered to be existing and movable as it can be measured by measuring the current that passes through the meter.
Also, electric power is something that can be purchased, sold, or stolen. Therefore, it comes within the definition of goods as specified under the code.

Verified Answer

The case concerning electric power will be covered under the code and will be considered to be a good.

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