Does the UCC §2-105 apply to buildings?

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ltp93
Posts: 19
Joined: Fri Aug 31, 2012 11:59 pm

Does the UCC §2-105 apply to buildings?

Postby ltp93 » Sat Oct 13, 2012 5:29 pm

My gut is saying that it does not, because buildings are not "movable." But then I am starting to second-guess myself because I suppose with the correct resources, a building could be made movable.

I am doing a hypo right now about the sale of "land and a new building" and my current answer says that the UCC does not apply because it involves the sale of "non-movable" goods.

Am I correct in my understanding?

Thank you in advance.

The Duck
Posts: 481
Joined: Tue Mar 13, 2012 10:14 am

Re: Does the UCC §2-105 apply to buildings?

Postby The Duck » Sat Oct 13, 2012 5:40 pm

Take a look at 2-107

ltp93
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Joined: Fri Aug 31, 2012 11:59 pm

Re: Does the UCC §2-105 apply to buildings?

Postby ltp93 » Sat Oct 13, 2012 5:46 pm

So, if I'm reading 2-107 correctly, because the building is not meant to be severed in the transaction by the seller, the UCC does not apply to this transaction?

Also, the entire hypo is about the sale of the land, building, and raw materials. The raw materials are definitely covered by the UCC. But, what would a good answer be in analyzing the entire transaction? Should I say something like, "The UCC only covers the sale of the raw materials, but does not govern the sale of the building and land."

bhan87
Posts: 850
Joined: Mon Mar 12, 2007 8:08 pm

Re: Does the UCC §2-105 apply to buildings?

Postby bhan87 » Sat Oct 13, 2012 5:50 pm

ltp93 wrote:My gut is saying that it does not, because buildings are not "movable." But then I am starting to second-guess myself because I suppose with the correct resources, a building could be made movable.

I am doing a hypo right now about the sale of "land and a new building" and my current answer says that the UCC does not apply because it involves the sale of "non-movable" goods.

Am I correct in my understanding?

Thank you in advance.


No it doesn't. There are some things that can flirt on the line between movable and non-movable (i.e. a stationary trailer), but buildings are well-regarded as non-movable objects. I've never seen a case where a building was considered a "good".

ltp93
Posts: 19
Joined: Fri Aug 31, 2012 11:59 pm

Re: Does the UCC §2-105 apply to buildings?

Postby ltp93 » Sat Oct 13, 2012 5:53 pm

^ Thank you.

Do you have any suggestions about how I should address the second part of the hypo.?

In class we have never discussed how the UCC may or may not apply to a sale that includes both movable and non-movable goods.

The hypo. states, "The sale is for the company's land, building, equipment, and all raw materials owned by company."

The Duck
Posts: 481
Joined: Tue Mar 13, 2012 10:14 am

Re: Does the UCC §2-105 apply to buildings?

Postby The Duck » Sat Oct 13, 2012 6:18 pm

I'd guess courts would apply the predominance or gravaman tests just like with mixed goods/services. Anyone else know for sure?




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