BMC Industries, Inc. v. Barth Industries, Inc.
United States Court of Appeals for the Eleventh Circuit
160 F.3d 1322 (1998)
BMC Industries (plaintiff), an eyeglass-lens manufacturer, contracted with Barth Industries (defendant) to design, build, and install equipment to automate parts of BMC's operations. When Barth missed the delivery date, BMC sued for breach of contract. The trial court ruled as a matter of law that the contract was predominantly for services and therefore outside UCC Article 2, which governs "transactions in goods." The jury found for BMC, and Barth appealed, arguing the contract should have been treated as a sale of goods under Article 2.
Whether a hybrid contract for both goods and services is a contract for the sale of goods under Article 2 of the UCC when the contract's language, billing terms, cost allocation, and the nature of the final product show that goods are the predominant factor.