Leibel v. Raynor Manufacturing Co.
Kentucky Court of Appeals
571 S.W.2d 640 (1978)
Leibel (plaintiff) orally agreed to distribute Raynor's (defendant) garage doors in the Lexington area with no specified end date, borrowing money to fulfill his obligations under the arrangement; after two years, Raynor sent a letter terminating the agreement effective immediately. Leibel sued, arguing he was entitled to reasonable advance notice rather than immediate termination; the trial court granted Raynor summary judgment, reasoning the UCC didn't apply and, even if it did, only actual (not reasonable) notice was required. Leibel appealed.
Whether, when a contract for the distribution of goods does not provide a specified duration, the party terminating the agreement is required to provide reasonable notice of termination.