Sales and Leases - A Problem-based Approach, 2016a

the predominant factor test, does she have a claim against the dentist for breach of warranty
under Article 2? What factors would you consider? Would there be a different result under the
gravamen test? Would the result be different if the dentist’s services were valued at $1,000 and
the dentures at $2,000?
Problem 2-7. A farmer contracts with an aerial spraying service to have his crops sprayed for
weeds with a herbicide. The cost of the herbicide is separately stated in the contract, and
represents 90% of the total invoice. The herbicide fails to control the weeds, and the farmer
brings a claim for breach of warranty under Article 2. Will the farmer be able to do so under the
predominant factor test? What factors should you consider? See Moeller v. Huntting Elevator
Co., 38 U.C.C. Rep. Serv. 2d (Callaghan) 1122 (Minn. App. 1999).
2.3. Application of Article 2 to Sales of Computer Software. Does the term “goods” include
computer software? As noted by the American Law Institute in its Introduction to the Principles
of the Law of Software Contracts, “perhaps no other commercial subject matter is in need of
greater harmonization or clarification.”
WEIS, Circuit Judge
Advent Systems Ltd. v. Unisys Corp.
925 F.2d 670 (3d Cir. 1991)
In this diversity case we conclude that computer software is a good within the Uniform
Commercial Code.…
Plaintiff, Advent Systems Limited, is engaged primarily in the production of software for
computers. As a result of its research and development efforts, by 1986 the company had
developed an electronic document management system (EDMS), a process for transforming
engineering drawings and similar documents into a computer data base.
Unisys Corporation manufactures a variety of computers.... In June 1987 Advent and
Unisys signed two documents.…
In these documents, Advent agreed to provide the software and hardware making up the
document systems to be sold by Unisys in the United States. Advent was obligated to provide
sales and marketing material and manpower as well as technical personnel to work with Unisys
employees in building and installing the document systems. The agreement was to continue for
two years, subject to automatic renewal or termination on notice.…
The relationship, however, soon came to an end. Unisys, in the throes of restructuring,
decided it would be better served by developing its own document system and in December 1987
told Advent their arrangement had ended....
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