In Corenswet Inc. v. Amana Refrigeration Inc. 594 F.2d
129 (5th Cir. 1979), After 7 years, Amana
attempted to terminate a contract with Corenswet to sell appliances.Corenswet felt the termination was 'arbitrary
and capricious'.Although the
contract was infinite in duration, it was terminatable by either party with
just 10 days notice.The Trial
Court found that the termination was a breach of good faith.The Appellate Court reversed.
Appellate
Court found that Amana's only obligation was to provide 'reasonable' notice,
as per UCC § 2-309(3).