Okla. Stat. tit. 12A § 2A-102

Current through Laws 2024, c. 378.

Section 2A-102 - [Effective 11/1/2024] Scope

(1) This article applies to any transaction, regardless of form, that creates a lease and, in the case of a hybrid lease, it applies to the extent provided in paragraph (2) of this section.

(2) In a hybrid lease:

(a) if the lease-of-goods aspects do not predominate:

(i) only the provisions of this article which relate primarily to the lease-of-goods aspects of the transaction apply, and the provisions that relate primarily to the transaction as a whole do not apply;

(ii) Section 2A-209 of this title applies if the lease is a finance lease; and

(iii) Section 2A-407 of this title applies to the promises of the lessee in a finance lease to the extent the promises are consideration for the right to possession and use of the leased goods; and

(b) if the lease-of-goods aspects predominate, this article applies to the transaction, but does not preclude application, in appropriate circumstances, of other law to aspects of the lease which do not relate to the lease of goods.

Okla. Stat. tit. 12A, § 2A-102

Amended by Laws 2024, c. 13,s. 12, eff. 11/1/2024.

Added by Laws 1988, HB 1683, c. 86, § 2, eff. 11/1/1988.

Oklahoma Code Comment

Article 2A applies to leases of goods. "Goods" are defined in § 2A-103(1)(h). Many leases also include an element of services; for example, installation or maintenance of the goods. Under an Oklahoma decision dealing with this issue in a sale of goods, it is clear the presence of a service element does not necessarily preclude coverage under Article 2A of the UCC. See Dunn Buick, Inc. v. Belle Isle Plumbing Heating & Air Conditioning Co., 9 UCC Rep.Serv. (Callaghan) 827 ((Okla.App.1971).).

But what if the transaction is primarily one for services, eventhough it is the goods component that causes the problem? For example, in Redwine v. Baptist General Convention, 681 P.2d 1121 (Okla.App.1982), the action was for wrongful death when a defective oxygenator owned by the hospital pumped air rather than blood into the deceased during open-heart surgery. The court denied warranty liability on the basis the hospital was principally engaged in the furnishing of services, and thus the applicable standard was negligence for which the statute of limitations had run. To the extent this case represents the law of Oklahoma, enactment of Article 2A would not change it. However, it is suggested that a more sensible approach, given very similar facts and given that the goods component of the transaction could qualify as a lease under Article 2A, is represented by the decision in Skelton v. Druid City Hospital Board, 459 So.2d 818 (Ala.1984).

The 1991 amendments make no change to this section.

This section is set out more than once due to postponed, multiple, or conflicting amendments.