Final answer:
Section 2-306 of the UCC does not disallow output contracts but instead provides guidance on reasonable quantity and good faith in such contracts. Federal regulations aim to standardize commerce practices across states, and states are prohibited from unfairly advantaging their ports, ensuring uniform business practices like those outlined in the UCC.
Step-by-step explanation:
No, Section 2-306 of the Uniform Commercial Code (UCC) does not expressly disallow output contracts in the sale of goods. In fact, output contracts, where a seller agrees to sell the entirety of their production to a buyer, and requirements contracts, where a buyer agrees to purchase their required quantity from a seller, are specifically contemplated and regulated by the UCC. Sectiom 2-306 provides guidance on how to determine a reasonable quantity in such contracts and implies good faith dealings between parties.
Underlying this question is the role of federal regulations in commerce, such as those stipulated in Section 8 Clause 3 and Section 9 Clause 6 of LibreTexts™. The interstate commerce clause has historically granted Congress broad powers to regulate commerce, which includes the standardization of business practices across states feated by the UCC. States cannot enact regulations or taxes that would unduly benefit their ports or penalize out-of-state goods, ensuring a degree of uniformity that is in alignment with the inclusive reach of Congress's commerce powers.