Medico Inc. enters into a contract to sell medical supplies to New Hospital Corporation,which sells some of the items to Physicians Clinic,which later sells them to Oscar,a patient and consumer. Article 2 of the UCC applies to the sales transactions betwee

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Article 2 of the UCC applies to the sales transactions between merchants, which means that it applies to the sales transactions between New Hospital and Physicians Clinic, who are both merchants. Medico and New Hospital may also be merchants, but the contract between them may have been governed by a different set of laws or regulations. The sale between Physicians Clinic and Oscar is not between merchants, so Article 2 of the UCC would not apply to that transaction.