contracted with to purchase and install a carpet for the home. Following installation, Nasau complained to BCC that some seams were visible, gaps appeared, the carpet did not lie flat in all areas, and the carpet failed to reach the wall in certain locations. Although BCC made various attempts to cure the installation by stretching the carpet and other methods, Nasau was not satisfied with the work and eventually sued BCC to recover the $3,500 downpayment towards the entire $4,319.50 contract price for the carpet and installation. Explain if the UCC applies or not. Include in your answer the applicable test to make that determination.

Nasau and BCC

Contract for the Purchase and Installation of a Carpet for Nasau's home:

The contract is for BCC to purchase and install a carpet for Nasau's home.  Therefore, UCC does not apply.  The UCC covers contracts for the sale of goods and not services.  BCC is not a merchant of carpets.

Furthermore, Nasau was not dissatisfied with the carpet bought by BCC.  Instead, he was not satisfied with the installation.  As such, Nasau should sue BCC under the common law of contracts and obtain redress therefrom.

Moreover, if one argues that the contract has a combination of goods and services, then the Predominant Factor Test will be applied to the case.  The Predominant Factor Test seeks to determine whether the predominant purpose of a contract is to sell goods or to render services.  Why was BCC contracted?  Predominantly, BCC was contracted for the installation of the carpet (rendering service).  BCC is not a merchant of carpets but an installation service provider.

Explanation:

UCC means Uniform Commercial Code.  The UCC contains rules applying to many types of commercial contracts, including contracts related to the sale of goods, leasing of goods, use of negotiable instruments, banking transactions, letters of credit, documents of title for goods, investment securities, and secured transactions.

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a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.