Unless the context otherwise requires, this article applies to transactions in goods; it does not apply to any transaction which although in the form of an unconditional contract to sell or [a] present sale is intended to operate only as a security transaction nor does this article impair or repeal any statute regulating sales to consumers, farmers or other specified classes of buyers.

History: 1953 Comp., § 50A-2-102, enacted by Laws 1961, ch. 96, § 2-102.

OFFICIAL COMMENTS

UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.

Prior uniform statutory provision. — Section 75, Uniform Sales Act.

Changes. — Section 75 has been rephrased.

Purposes of changes and new matter. — To make it clear that:

The article leaves substantially unaffected the law relating to purchase money security such as conditional sale or chattel mortgage though it regulates the general sales aspects of such transactions. "Security transaction" is used in the same sense as in the article on secured transactions (Article 9).

Cross reference. — Article 9.

"Contract". Section 1-201.

"Contract for sale". Section 2-106.

"Present sale". Section 2-106.

"Sale". Section 2-106.

Scope of article. — Court can find nothing in the pertinent Code provisions or comments to indicate that it is not to apply to all sales of goods. Foster v. Colorado Radio Corp., 381 F.2d 222 (10th Cir. 1967).

Sale of crude oil by the producers is a sale of goods, and is thus governed by Article 2 of the Code. Amoco Pipeline Co. v. Admiral Crude Oil Corp., 490 F.2d 114 (10th Cir. 1974).

A business may be sold in which all the assets aside from goodwill would be goods, and nonapplication of the Code to the sale of goods in such a case is contrary to the intention of the drafters. Foster v. Colorado Radio Corp., 381 F.2d 222 (10th Cir. 1967).

Article inapplicable to mixed contract. — This article was held inapplicable to a contract itemizing several dozen services to be performed by an interior designer in a health care facility despite the additional contemplation of purchasing and reselling of furnishings as goods between the parties, since the primary purpose of the contract, though mixed, was for the provisions of services. Kirkpatrick v. Introspect Healthcare Corp., 1992-NMSC-070, 114 N.M. 706, 845 P.2d 800.

Inapplicable to sale of business. — A sale involving the transfer of a business as a going concern is not a transaction in goods. Stewart v. Lucero, 1996-NMSC-027, 121 N.M. 722, 918 P.2d 1.

Law reviews. — For comment, "Commercial Law - Uniform Commercial Code - Sale of Goods," see 8 Nat. Resources J. 176 (1968).

Am. Jur. 2d, A.L.R. and C.J.S. references. — 68A Am. Jur. 2d Secured Transactions §§ 13, 105, 184 et seq.

Validity and mutuality of agreement to buy where there is no express agreement to sell, 60 A.L.R. 215.

Violation of statute as to form of, or terms to be included in, conditional sale contract, as invalidating entire transaction or merely its effect to reserve title in vendor, 144 A.L.R. 1103.

Use of conditional sale contract to secure debt in addition to the purchase price, 148 A.L.R. 346.

Conflict of laws as to conditional sale of chattels, 148 A.L.R. 375, 13 A.L.R.2d 1312.

What amounts to conditional sale, 175 A.L.R. 1366.

Title to unknown valuables secreted in articles sold, 4 A.L.R.2d 318.

Validity, construction, and effect of contract between grower of vegetable or fruit crops, and purchasing processor, packer, or canner, 87 A.L.R.2d 732.

What constitutes a transaction, a contract for sale, or a sale within the scope of UCC Article 2, 4 A.L.R.4th 85.

Applicability of UCC Article 2 to mixed contracts for sale of goods and services, 5 A.L.R.4th 501.

77A C.J.S. Sales § 1 et seq.