Question

In: Operations Management

Need understand or forming an Idea. 1. Is a phone contract governed by UCC or common...

Need understand or forming an Idea.

1. Is a phone contract governed by UCC or common law? Explain why. (Atleast 10 sentences)

Solutions

Expert Solution

Goods are tangible objects which are movable and capable of ownership. This definition would include, for example, an apple, a truckload of apples, ninety truckloads of apples, or a piano. Goods are NOT services (e.g. a haircut or a physical test by a doctor). Thus, the UCC does not apply to service contracts (including employment contracts). Goods are also not real property (also often called 'real estate'). Real property refers to any interest in land, including the land itself or a building on the land, as well as interests in land which are less than absolute ownership (e.g. an easement or a lease). Contracts which do not involve the sale of goods are not governed by the UCC.

A cell phone contract is for a service and not a good and thus not covered by the UCC. Ifthe contract is for the lease of a phone and not service then it falls under common law.

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