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LLC company, contracted to buy a jet from Cessna Aircraft Company for $7.2 million. As part of the agreement, Cessna Promised to manage the Jet

LLC company, contracted to buy a jet from Cessna Aircraft Company for $7.2 million. As part of the agreement, Cessna Promised to manage the Jet [meaning they would rent it out on behalf of LLC Company in order to generate revenue]. for five years to help recoup some of the purchase price. Three years later, Cessna informed LLC Company that the jet was being dropped from the management program. Because of this decision, the LLC Company was forced to sell the jet for less than 80% of the purchase price. Later LLC Company filed a suit in federal district court against Cessna claiming breach of contract under the UCC. The court dismissed the claim, ruling that the contract was not subject to the UCC because managing a jet was a service [common law rules]. LLC Company appealed. The US District Court of appeals reversed the lower court's dismissal of the suit. The contract involved a sale of goods [the jet] and a sale of services [its management] which was a mixed contract.

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