Leibel v. Raynor Manufacturing Co.

Leibel v. Raynor Manufacturing Co. - Contracts 11/14...

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Contracts 11/14 Rationale for Implied Terms Leibel v. Raynor Manufacturing Co., KY Court of Appeals, 1978 Facts : There was an oral agreement whereby appellant was to have an exclusive dealer- distributorship for appellee’s garage doors in a territory extending for a 50-mile radius from Lexington, Ky (March 1, 1974). As a result of the agreement, Leibel borrowed lots of money. After 2 years of decreasing sales, Raynor notified Leibel that their relationship was terminated immediately. Raynor argued that the agreement was for indefinite duration and could be terminated at will. Leibel said he was entitled to reasonable notice. Procedure : trial court said the UCC wasn’t intended to apply to this situation (they saw manufacturer-dealer relationship as services and not goods); even if it did apply, the statute just says that actual notice of termination must be given. Reasonable notice wasn’t necessary. If the court required reasonable notice, it would be making a contract for the parties. Issue
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Leibel v. Raynor Manufacturing Co. - Contracts 11/14...

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