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Simple English definitions for legal terms
predominant-purpose test
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A quick definition of predominant-purpose test:
A predominant-purpose test is a way to determine if a transaction falls under Article 2 of the UCC, which deals with the sale of goods. This test looks at the main aspect of the exchange and considers if it is primarily the sale of goods or services. If goods make up most of the value, it is likely a sale, but if services are the main aspect, it probably is not. The Bonebrake v. Cox case is a leading example of this test.
A more thorough explanation:
The predominant-purpose test is a way to determine if a transaction falls under Article 2 of the Uniform Commercial Code (UCC). This test looks at the main purpose of the transaction and considers if it involves the sale of goods.
For example, if a person buys a car from a dealership, the predominant-purpose of the transaction is the sale of goods. However, if a person hires a mechanic to fix their car, the predominant-purpose of the transaction is the provision of services.
The Bonebrake v. Cox case is a leading example of the predominant-purpose test. In this case, the court determined that a contract for the sale of a combine was primarily a sale of goods, even though it included some services.
Overall, the predominant-purpose test is used to determine if a transaction falls under Article 2 of the UCC, which governs the sale of goods.