Rubrics for Law 2

Assignment #4 - Termination of Franchise

A (90-100) = Under UCC can cancel if buyer does not pay for goods on time and without notice to A/C
B (80-90) = at least talk about UCC and cancelation of contract
C(70-80) = no discussion of UCC, and issue of notice
D(60-70) = did not understand the case at all

The court pointed out that A/C’s account was not current on the date Lennox withdrew permission for the sale of its products in Tulsa. The court also noted that under the UCC, if a buyer does not pay for goods on time, the seller can cancel the contract. Chronic failure to make timely payments has, in other cases, justified the cancellation of franchise agreements.

“The reason is obvious; an aggrieved seller dealing with a buyer who is in breach of their contract should not normally be obliged to put the delinquent buyer on notice before terminating future relations.” Lennox likewise “had no obligation to provide A/C with notification of its reasons for canceling the agreement permitting A/C to purchase products for resale in Tulsa.

unlike termination under U.C.C. 2-2309 cancellation under 2-703 for failure to pay does not require prior notice to buyer