Star Coach, L.L.C., is in the business of converting sport utility vehicles and pickup trucks into custom vehicles. Star Coach performs the labor involved in installing parts supplied by other companies onto vehicles owned by dealers. Heart of Texas Dodge purchased a new Dodge Durango from Chrysler Motors and entered into an agreement with Star coach whereby Star Coach would convert the Durango to a Shelby 360 custom performance vehicle and then return the converted vehicle to Heart of Texas Dodge. The manufacturer delivered the dealer's Durango to Star Coach and, over a period of several months, Star Coach converted the vehicle using parts supplied by another company, Performance West. Several months later, Star Coach delivered the vehicle to Heart of Texas Dodge, and Heart of Texas Dodge paid Star Coach the contract price of $15,768 without inspecting the vehicle. Two days later, Heart of Texas Dodge inspected the vehicle and concluded that the workmanship was faulty. It stopped payment on the check and Star Coach filed suit against Heart of Texas Dodge. One of the issues in the litigation was whether the UCC applied to the contract in this case. Does the UCC apply to a contract for the conversion of a van that involves both goods and services?

  • CreatedJuly 16, 2014
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