594 F.2d 129 (1979)
Plaintiff was the exclusive distributor of certain home appliances manufactured by defendant. Plaintiff sued to prevent defendant from terminating the relationship, on the ground that defendant's attempted termination was arbitrary and capricious. The district court found that the termination was arbitrary and was therefore in breach of the distributorship agreement as well as of the Uniform Commercial Code's general "good faith" principle. Defendant challenged the district court's finding that the termination was arbitrary and without cause.
On appeal, the court held that an arbitrary termination was permissible under both the contract and the law of Iowa.
The court reversed the district court and vacated the injunction, stating that an arbitrary termination was permissible under both the contract and the law of Iowa.
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