Ark. Code Ann. § 4-2-306 (2026)
Output, requirements, and exclusive dealings
- A term which measures the quantity by the output of the seller or the requirements of the buyer means such actual output or requirements as may occur in good faith, except that no quantity unreasonably disproportionate to any stated estimate or in the absence of a stated estimate to any normal or otherwise comparable prior output or requirements may be tendered or demanded.
- A lawful agreement by either the seller or the buyer for exclusive dealing in the kind of goods concerned imposes unless otherwise agreed an obligation by the seller to use best efforts to supply the goods and by the buyer to use best efforts to promote their sale.
History. Acts 1961, No. 185, § 2-306; A.S.A. 1947, § 85-2-306.
Research References
ALR.
Establishment and construction of requirements contracts under § 2-306(1) of Uniform Commercial Code. 94 A.L.R.5th 247.
Case Notes
Good Faith.
The fact that the exclusive purchase agreement left open the number of gallons of gasoline to be purchased monthly did not support invalidation of the agreement, since this section imposed the duty on the buyer to conduct his business in good faith so that his requirements would approximate a reasonably foreseeable figure. Stacks v. F & S Petro. Co., 6 Ark. App. 327, 641 S.W.2d 726 (1982).
Cited: Rocka v. Gipson, 3 Ark. App. 293, 625 S.W.2d 558 (1981).