Conwell v. Gray Loon Outdoor Marketing Group, Inc.

Brief Fact Summary.

Piece of America (POA) appealed the lower courts judgment that a contract for services applied under the Uniform Commercial Code. 

Synopsis of Rule of Law.

A contract for the sale of goods and services falls under the Uniform Commercial Code if the transaction predominantly involves the sale of goods. 

Facts.

Piece of America (POA) hired Gray Loon Outdoor Marketing Group, Inc. (Gray) to design and host a website. After that project was completed, Gray orally agreed to modify the website for POA. Gray made the modifications to the website but POA did not pay Gray for their work. The trial court ruled that the Uniform Commercial Code (UCC) applied and the court of appeals affirmed. 

Issue.

Whether a contract for both the sale of goods and services falls under the Uniform Commercial Code?

Held.

Yes. Because the product is the expertise of the programmer, the website is not a tangible good that is governed under Article 2 of the UCC. 

Discussion.

Article 2 of the UCC applies to the sale of goods. Goods are defined as items that are movable at the time of contract for sale.