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Identification of governing law - Next Generation Bar Exam

  1. Under the majority test, how is a contract involving both goods and services classified?
    By its predominant purpose. If the predominant purpose is the sale of goods, Article 2 governs the whole contract.
  2. What body of law governs contracts for services, employment, and real estate?
    The common law of contracts. These subjects fall outside Article 2.
  3. How does Article 2 classify growing crops and the unborn young of animals?
    As goods. They are treated as goods even though they do not yet exist in final form.
  4. Who qualifies as a merchant under Article 2?
    One who deals in goods of the kind or holds itself out as having knowledge or skill peculiar to the goods involved. Several Article 2 rules, such as the firm offer and the merchant's confirmation, apply only to merchants.
  5. Under UCC 2-107, how is a contract for the sale of timber to be cut classified?
    As a contract for the sale of goods, whoever severs the timber. By contrast, minerals and structures are goods only if the seller is to sever them.
  6. What source supplements Article 2 when it does not address an issue?
    Principles of common law and equity. UCC 1-103(b) preserves those principles unless displaced by a particular UCC provision.
  7. How does the UCC define goods?
    Things movable at the time of identification to the contract. Money in which the price is paid, investment securities, and things in action are excluded.
  8. Which article of the UCC governs leases of goods?
    Article 2A. Article 2A largely parallels Article 2 but adapts its rules to leasing.
  9. A buyer contracts for a $10,000 computer system that includes $500 of installation. Which body of law governs?
    UCC Article 2, because the predominant purpose is the sale of goods. The installation services are incidental to the sale of the equipment.
  10. What body of law governs contracts for the sale of goods?
    Article 2 of the Uniform Commercial Code. Article 2 displaces the common law for sales of goods, but the common law fills its gaps.

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