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107(2) (1951), cmt. 2; 2 Anderson U.C.C. §§ 2-107:7, 2-107:8 (3d. ed.), Westlaw (database updated Dec. 2020); Identifying Goods to the Contract, infra .]
Example : A contractor built a house. To that end, the contractor purchased an exterior insulation finishing system (EIFS) to incorporate into the house. Once the EIFS was made part of the house, it became a multilayer system that itself comprised the house’s exterior wall and was attached to the house’s underlying sheathing. If the EIFS were removed, the underlying sheathe would be damaged, the house’s overall structural integrity would lessen, and the home’s interior walls would be exposed to the elements. Here, the EIFS is not a good, because one could not remove it from the house without materially damaging the house. [ Adapted from Keck v. Dryvit Systems, Inc. , 830 So.2d 1 (Ala. 2002).] 3) Protection of Third Parties’ Rights in Things to Be Severed from Realty Before minerals, crops, structures, and so on are severed from the realty, third parties may acquire rights in the land (and, hence, in the things to be severed) under local recording statutes. The buyer’s rights in the things to be severed are subject to these third-party rights. [ See U.C.C. § 2-107(3) (1951); 2 Anderson U.C.C. § 2-107:9 (3d. ed.), Westlaw (database updated Dec. 2020).]
2. Transactions Excluded from Article 2’s Scope Several types of transactions are excluded from Article 2’s scope, namely:
transactions operating only as secured transactions; leases; transactions in real property; bailments; and to the extent of any conflict, transactions subject to laws regulating sales to specified classes of buyers, such as consumers or farmers.
[U.C.C. § 2-102 (1951).]
a. Secured Transactions Article 2 does not apply to a transaction intended to operate only as a secured transaction. Put another way, a secured transaction subject to UCC Article 9 is no transaction in goods. However, just because a transaction produces a security interest in goods does not mean
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