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.


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."

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Answer the following statement true (T) or false (F)

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In the syndication of a partnership, brokerage and registration fees, printing fees, and legal fees of the underwriter total $50,000. With respect to these fees, the partnership must

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