Author Question: Goods Associated with Real Estate. Heatway Radiant Floors and Snowmelting Corp sells parts for ... (Read 63 times)

mp14 · **on:** Jun 24, 2018

Goods Associated with Real Estate. Heatway Radiant Floors and Snowmelting Corp sells parts for underground radiant heating systems. These systems circulate warm fluid under indoor flooring as an alternative to conventional heating systems or under driveways and sidewalks to melt snow and ice. Goodyear Tire and Rubber Co made and sold a hose, Entran II, that Heatway used in its radiant systems. Between 1989 and 1993, 25 million feet of Entran II was made by Goodyear and installed by Heatway. In 1992, homeowners began complaining about hardening of the hose and leaks in the systems. Linda Loughridge and other homeowners filed a suit in a federal district court against Goodyear and Heatway, alleging a variety of contract breaches under Colorado's version of the Uniform Commercial Code (UCC). Goodyear filed a motion for summary judgment, arguing in part that because Entran II was used in the construction of underground systems that were covered by flooring or cement, the hose was not a good and thus the UCC did not apply. Should the court agree with this interpretation of the scope of Article 2? Explain.

Question 2

The principal may hold the third party to a contract, in an undisclosed principal situation, except when the:
a. undisclosed principal is expressly excluded as a party to the contract between the agent and the third party b. agent's performance is personal to the contract
c. contract, when a negotiable instrument, does not include the identity of the principal or existence of the agency relationship
d. undisclosed principal is expressly excluded as a party to the contract between the agent and the third party or the agent's performance is personal to the contract
e. undisclosed principal is expressly excluded as a party to the contract between the agent and the third party or the agent's performance is personal to the contract or the undisclosed principal is expressly excluded as a party to the contract between the agent and the third party or the agent's performance is personal to the contract

amcvicar · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

Goods associated with real estate
The court concluded that the Entran II hose is a good' for purposes of the Colorado UCC, and on this basis denied Goodyear's motion for summary judgment on the homeowners' contract claims. The court explained that the plaintiffs' cause of action arose from the contract between Goodyear and Heatway for sale of the hose. Thus, the Entran II was an existing and identifiable thing which was movable at the time of identification to the contract for sale. Also, separate units of goods which are later incorporated into a home or other building are still goods at the time that they are procured for installation. The fact that materials sold might later be installed in the . . . home and assume the character of fixtures does not undermine the primary purpose of the contract as one for a sale of goods.

Answer to Question 2

e