Question:
Heatway Radiant Floors and Snowmelting Corp. sell parts for underground radiant heating systems. These systems circulate warm fluid under indoor flooring as an alternative to conventional heating systems or under driveways and sidewalks to melt snow and ice. Goodyear Tire and Rubber Co. made and sold a hose, Entran II, that Heatway used in its radiant systems. Between 1989 and 1993, 25 million feet of Entran II was made by Goodyear and installed by Heatway. In 1992, homeowners began complaining about hardening of the hose and leaks in the systems. Linda Loughridge and other homeowners filed a suit in a federal district court against Goodyear and Heatway, alleging a variety of contract breaches under Colorado’s version of the Uniform Commercial Code (UCC). Goodyear filed a motion for summary judgment, arguing, in part, that because Entran II was used in the construction of underground systems that were covered by flooring or cement, the hose was not a “good” and thus the UCC did not apply. Should the court agree with this interpretation of the scope of Article 2? Explain.