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UCC rules do not apply when sale of product is merely incidental to contract for services

C & S Electric Service became embroiled in a controversy with ACEMCO, Inc, after a catastrophic failure of electrical conduit on ACEMCO's production floor.  Ultimately, ACEMCO achieved a judgment against C & S, which the latter appealed.  C & S argued that under the Uniform Commercial Code, it could not be sued for the vast majority of ACEMCO's economic damages because damages should be limited by the "economic loss" doctrine.  The Court noted that the parties' arrangement whereby C & S installed the conduit was a mixed contract for sale of goods and services, meaning the damage limitations of the UCC do not apply.
Thompson O’Neil, P.C.
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Traverse City, Michigan 49684
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