Complete Review Questions 1, 2 and 3 in Chapter 2 (page 35)

1. Which of the following contracts would be covered by Article II of the UCC? Explain your
reasoning for each item.

a. A California corporation is buying the Willis Tower (Chicago).

This would not be covered under Article II of the UCC because it involves real property.

b. Ian Investor is selling 10,000 shares of stock in McDonald’s Corp.

No, intangibles are not covered by Article II. (See 2-105)

c. American Pharoah, winner of the 2015 Kentucky Derby, is being sold to a horse breeding
company in Michigan.
Yes, livestock and animals are covered under Article II.

d. Farmer Brown, planning to quit farming and develop the land, sells his entire crop of apples,
to be harvested in three months, as well as the trees themselves, to be cut and processed into
mulch immediately after harvest.
Under section 2-107(2), both the apples and the trees are covered.

e. Jamie takes a job on an assembly line, manufacturing automobiles, and signs an employment
contract.
No, employment is a service, which is not covered under Article II of the UCC.

f. Farmer Brown hires an exterminator to apply pesticides to his 50 acre farm.

No, the agreement between Farmer Brown and the exterminator would not be covered under
Article II because it is a service.

g. You go to your bank and borrow $1,500 to pay off a high interest credit card that you used to
buy books and clothes last semester. The bank does not require collateral.

h. Harry’s popular tourist spot that has a maze, cider, and other autumn attractions, buys a while
crop of pumpkins in June, while they are still growing.
Yes, the pumpkins are covered under section 2-107(2).

i. A contractor agrees to remodel a bathroom for $10,000, which includes about $3,000 for new
fixtures.
No, this is a service which is not included under Article II.

j. You agree to take a job, in a neighboring state, for a salary of $45,000 per year.
No, employment is not covered under the Article, as it is a service.
k. Lynn buys sold her house, the buyer insisted on a new furnace. Lynn buys a new furnace,
which will be installed before the new owner moves in.
Yes, it is covered.

2. What is the Restatement?

Restatement is a summary of laws on various issues often created by judges.

3. Why is the UCC not really uniform?

The UCC is amended throughout time, during at which point, the states that have adopted to
use have the option of using the amended version or not.