Asked by Sydney Vanpelt on May 27, 2024
Verified
According to the provisions of UCC,an exclusive dealing contract imposes a duty only on the distributor to use its best efforts to sell the goods.
Exclusive Dealing Contract
An agreement where one party agrees to buy goods exclusively from another party, thereby preventing the seller from selling to others.
UCC
Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States, making business operations more uniform across states.
- Understand the implications of contractual promises on legal obligations.
Verified Answer
ZK
Zybrea KnightJun 02, 2024
Final Answer :
False
Explanation :
When a manufacturer of goods enters an agreement giving a distributor the exclusive right to sell the manufacturer's products in a particular territory,the agreement imposes sufficient obligations on both parties to meet the legal value test.The UCC imposes a duty on the distributor to sell the goods and imposes a reciprocal duty on the manufacturer to supply the goods.
Learning Objectives
- Understand the implications of contractual promises on legal obligations.