Insul-Mark is the marketing arm of Kor-It Sales, Inc. Kor-It manufactures roofing fasteners and Insul-Mark distributes them nationwide. In late 1985, Kor-It contracted with Modern Materials, Inc., to have large volumes of screws coated with a rust-proofing agent. The contract specified that the coated screws must pass a standard industry test and that Kor-It would pay according to the pound and length of the screws coated.
Kor-It had received numerous complaints from customers that the coated screws were rusting, and Modern Materials unsuccessfully attempted to remedy the problem. Kor-It terminated its relationship with Modern Materials and brought suit for the deficient coating. Modern Materials counterclaimed for the labor and materials it had furnished to Kor-It.
The trial court held that the contract (a) was for performance of a service,
(b) not governed by the Uniform Commercial Code,
(c) governed by the common law of contracts, and
(d) therefore, barred by a two-year statute of limitations. Insul-Mark appealed. Decision?