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Leibel v. Raynor Manufacturing Co.

Kentucky Court of Appeals
571 S.W.2d 640 (1978)


Facts

James Leibel (plaintiff) orally agreed to be the distributor of garage doors manufactured by Raynor Manufacturing Co. (Raynor) (defendant) for the Lexington, Kentucky area on March 1, 1974. Leibel borrowed money to do the tasks necessary to perform under the agreement. The parties did not agree to a specified time when the agreement would end. After two years, Raynor notified Leibel by letter that it was terminating the agreement. The letter stated that termination was effective immediately. Leibel filed suit. Raynor moved for summary judgment, arguing that the agreement was for no fixed duration and could be terminated at will by either party. Leibel argued that he was entitled to reasonable notice before termination. The trial court granted Raynor’s motion, finding that Raynor only needed to provide actual notice. The court reasoned that the Uniform Commercial Code (UCC) did not apply to the agreement, but even if it did, Raynor was not obligated to give reasonable notice, only actual notice. Leibel appealed to the Kentucky Court of Appeals.

Rule of Law

Issue

Holding and Reasoning (Howerton, J.)

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