Opinion ID: 2606626
Heading Depth: 1
Heading Rank: 3

Heading: application of uniform commercial code

Text: My difference with the majority in reasoning invokes the contractual provisions and the law of sales under the Uniform Commercial Code as applied to the wellhead sale criteria of the state lease. The provisions of the Phillips purchase agreement to be analyzed are (a) designated point of sale; (b) title change; (c) delivery of possession and custody; and (d) purchase price determined by value added factors upon use by the purchaser. The critical inquiry is whether under general business law the price-determination factor changes the point of sale where all other determinative factors for a sale do exist. Extensive authorities uniformly answer in the negative. Franklin Fibre-Lamitex Corp. v. Director of Revenue, Del.Supr., 42 U.C.C.Rep. 1205, 505 A.2d 1296 (1985), where the U.C.C. is used to define sold within the state for tax within the state for tax purposes; Mari v. Wagner Equipment Co., Inc., Colo. App., 42 U.C.C.Rep. 1634, 721 P.2d 1208 (1986), where conversion of a scraper after sale was required; IUE AFL-CIO Pension Fund v. Barker & Williamson, Inc., 1 U.C.C.Rep.2d 205, 788 F.2d 118 (3d Cir.1986), the parties if they so intend can conclude a sale even though the price is not settled; Bornstein v. Somerson, Fla.App., 21 U.C.C.Rep. 36, 341 So.2d 1043 (1977), sale of citrus crops; Columbus Milk Producers' Cooperative v. Department of Agriculture, 8 U.C.C.Rep. 481, 48 Wis.2d 451, 180 N.W.2d 617 (1970), executory sale of milk; Schmieder v. Standard Oil Co. of Indiana, 17 U.C.C.Rep. 360, 69 Wis.2d 419, 230 N.W.2d 732 (1975), filling station equipment price subject to negotiation; Barker v. Allied Supermarket, Okla. App., 20 U.C.C.Rep. 6 (1976), injury from store merchandise before reaching checkout counter constituted a sale upon pickup with intent to purchase. See also Fender v. Colonial Stores, 138 Ga. App. 31, 225 S.E.2d 691 (1976); Desbien v. Penokee Farmers Union Cooperative Association, 220 Kan. 358, 20 U.C.C.Rep. 102, 552 P.2d 917 (1976), sale of wheat completed upon delivery to elevator; First National Bank of Elkhart County v. Smoker, 153 Ind. App. 71, 11 U.C.C.Rep. 10, 286 N.E.2d 203, reh. denied 153 Ind. App. 71, 287 N.E.2d 788 (1972), possession of cattle determinative although grade and weight after slaughter would determine the price; American Petrofina, Inc. v. PPG Industries, Inc., Tex. App., 40 U.C.C.Rep. 816, 679 S.W.2d 740 (1984), three million gallons of deisel fuel had been sold by designation in storage tank; Salinas v. Flores, Tex.Civ.App., 583 S.W.2d 813 (1979), sale of watermelons; Georgia Power Co. v. East Tennessee Fuel, Inc., 496 F. Supp. 626 (E.D.Tenn. 1980), coal price determined by delivery point b.t.u. testing. This listing may be belabored, but the authorities are multi-faceted, numerous, and consistent. In Piney Woods, as in many similar authorities on the marketprice time-determination questions, consistent application of the Uniform Commercial Code exists. The decision here must be justified by application of Wyoming statutes and the U.C.C. principles, since no exclusion or exception for the State or its instrumentalities was provided in either the generally adopted Uniform Commercial Code or the specific Wyoming statutes.