[Lucky Morton] Morton, who owns 500 acres of land in east Texas, has just discovered oil under his property. He calls OilEx, who wants to buy all of the oil from Morton's property. Morton is thrilled about the money he will make from selling the oil and he signs a contract allowing OilEx to set up a drilling station on his property. Thinking he can get more money off his land, Morton cuts down all of his trees with a chainsaw and then sells them to PaperCo to be made into paper. Meanwhile, Morton's neighbor offers to buy Morton's wheat crop after it is harvested in the Fall, and Morton agrees.
-Is Morton's contract for PaperCo to purchase his trees covered by the UCC?
A) No, because the trees are part of the land and land sales are covered by common law.
B) Yes, because trees are always considered goods.
C) Yes, but only if Morton sells PaperCo the right to come onto his property and remove the trees.
D) Yes, because Morton cut them down and then sold them to PaperCo.
E) Yes, but only if PaperCo removes the trees.
Correct Answer:
Verified
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