Opinion ID: 773732
Heading Depth: 2
Heading Rank: 2

Heading: Applicability of the Uniform Commercial Code

Text: 17 The case appears to have been argued on the assumption that the contract is a contract for the sale of goods within the scope of Article 2 of the Uniform Commercial Code. We agree with the assumption. Whether the contract is a sales contract is of some importance in this case, because the parol evidence rule governing commercial contracts, codified at Ohio Rev. Code § 1302.05, differs from the common law rule, and because the significance of Watkins's allegations that Iams made parol representations after execution of the written contract depends on the application of Ohio Rev. Code §1302.12(B), a U.C.C. provision in derogation of the common law that governs oral modification or recission of written commercial contracts. 18 While we have on occasion discussed the classification of a distributorship agreement as a sales contract when deciding cases not governed by Ohio law, see, e.g., AB Prods. v. Dampney Co., Inc., No. 89-1871, 1990 U.S. App. LEXIS 12465, at  (6th Cir. Jul. 24, 1990) (holding that under Michigan law, distributorship agreement without a quantity term was not a contract for the sale of goods); Herman Bros. Sales Corp. v. Hill's Pet Prods., No. 88-1768, 1989 U.S. App. LEXIS 6600, at -7 (6th Cir. May 15, 1989) (holding that under Kansas law, distributorship agreement was not a contract for the sale of goods), 3 we know of no case decided under Ohio law that discusses the question whether a distributorship agreement is a contract for the sale of goods. The majority rule is that distributorship contracts are sales contracts. See Sally Beauty Co., Inc. v. Nexxus Prods. Co., Inc., 801 F.2d 1001, 1005-06 (7th Cir. 1986); Paulson, Inc. v. Bromar, Inc., 775 F.Supp. 1329, 1333 (D. Haw. 1991) (both listing jurisdictions in which the majority rule applies). The majority rule should apply in this case, because it is clear from the text of the written agreement between Watkins and Iams that their relationship was primarily about the sale of pet food by Iams to Watkins, and Watkins's resale of the pet food to retail customers. One can imagine a distributorship agreement in which the service component predominates over the goods component, but in the typical case, as here, the service component will not predominate, and the majority rule will apply under Ohio law as under the law of most other jurisdictions. 19