Mich. Comp. Laws » Michigan Compiled Laws / Chapter 440 / Act 174 of 1962

Mich. Comp. Laws § 440.2306

Output of seller; requirement of buyer; exclusive dealing.

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UNIFORM COMMERCIAL CODE


Act 174 of 1962


440.2306 Output of seller; requirement of buyer; exclusive dealing.

Sec. 2306.

    (1)  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.

    (2) 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: 1962, Act 174, Eff. Jan. 1, 1964

Notes of Decisions
Cited in 34 cases (14 in the last 5 years), 1969–2025 · leading case: Auburn Sales, Inc. v. Cypros Trading & Shipping, Inc.
Sort: Relevance Newest Treatment
Auburn Sales, Inc. v. Cypros Trading & Shipping, Inc. (2018) ca6 · cites it 2× “7 This is consistent with Mich. Comp. Laws § 440.2306 cmt. 2, which explains that "a contract for output or requirements is not too indefinite since it is held to mean the actual good faith output or requirements of the particular party.”
Lorenz Supply Co. v. American Standard, Inc. (1984) mich · cites it 4× “Section 2-306, MCL 440.2306; MSA 19.2306, which validates contract terms which measure quantity by the output of the seller or the requirements of the buyer, clearly encompasses agreements that contemplate ongoing commercial arrangements such as are involved in a normal…”
General Motors Corp. v. Paramount Metal Products Co. (2000) mied · cites it 7× “§ 440.2306 provides in part: (1) Output, requirements.”
Johnson Controls, Inc. v. TRW Vehicle Safety Systems, Inc. (2007) mied · cites it 6× “See Mich. Comp. Laws § 440.2306 (defining quantity in output or requirements contracts as actual good faith output or requirements).”
Fashion House, Inc. v. K Mart Corporation, Fashion House, Inc. v. K Mart Corporation (1989) ca1 “See Mich.Comp.Laws § 440.2306(1) (1967) (“A [contract] term which measures the quantity by .”
Appalachian Railcar Services, Inc. v. Boatright Enterprises, Inc. (2008) miwd “§ 440.2306(2), which provides, “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…”
Wolverine World Wide, Inc. v. Wolverine Canada, Inc. (2009) miwd · cites it 2× “See MCL § 440.2306(1) (describing output and requirement contracts); Lorenz Supply Co.”
Lorenz Supply Co. v. American Standard, Inc. (1980) michctapp “2204(3), MCL 440.2306(1); MSA 19.2306(1). The defendant contends that the trial court erred in submitting the issue of damages on the distributorship agreement to the jury where plaintiff made no attempt to mitigate damages by seeking "cover”.”
Advanced Plastics Corp. v. White Consolidated Industries, Inc. (1993) mied “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 dis *488 proportionate to any stated estimate or in the absence of a stated…”
In Re Frost Estate (1983) michctapp “The slab referred to was capable of being identified with reasonable certainty as was the location and dimensions.”
JW Knapp Company v. Sinas (1969) michctapp · cites it 2× “2305), stating that if the parties so intend they can conclude a contract for sale even though the price is not settled and providing how the price shall be determined in sueh a case; MCLA § 440.2306 (Stat Ann 1964 Rev § 19.2306) concerning contracts for the seller’s output or…”
Aidamark, Inc. v. Roll Forming Corporation (2014) ca6 · cites it 2× “Mich. Comp. Laws § 440.2306 ; see also Precision Rubber Prods.”
Show all 34 citing cases →
— Mich. Comp. Laws § 440.2306(1) — 18 cases
Fashion House, Inc. v. K Mart Corporation, Fashion House, Inc. v. K Mart Corporation (1989) ca1 “See Mich.Comp.Laws § 440.2306(1) (1967) (“A [contract] term which measures the quantity by .”
Wolverine World Wide, Inc. v. Wolverine Canada, Inc. (2009) miwd “See MCL § 440.2306(1) (describing output and requirement contracts); Lorenz Supply Co.”
Lorenz Supply Co. v. American Standard, Inc. (1980) michctapp “2204(3), MCL 440.2306(1); MSA 19.2306(1). The defendant contends that the trial court erred in submitting the issue of damages on the distributorship agreement to the jury where plaintiff made no attempt to mitigate damages by seeking "cover”.”
Lorenz Supply Co. v. American Standard, Inc. (1984) mich “Section 2-306, MCL 440.2306; MSA 19.2306, which validates contract terms which measure quantity by the output of the seller or the requirements of the buyer, clearly encompasses agreements that contemplate ongoing commercial arrangements such as are involved in a normal…”
Advanced Plastics Corp. v. White Consolidated Industries, Inc. (1993) mied “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 dis *488 proportionate to any stated estimate or in the absence of a stated…”
— Mich. Comp. Laws § 440.2306(2) — 6 cases
Appalachian Railcar Services, Inc. v. Boatright Enterprises, Inc. (2008) miwd “§ 440.2306(2), which provides, “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…”
General Motors Corp. v. Paramount Metal Products Co. (2000) mied “§ 440.2306 provides in part: (1) Output, requirements.”
Powerscreen USA, LLC v. D & L Equipment, Inc. (2009) kywd
Cadillac Rubber & Plastics Inc v. Tubular Metal Systems LLC (2020) michctapp
Franklin v. Haak (2020) mied
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