[#item_full_content] The U.S. Court of Appeals for the Sixth Circuit ruled that cannabis contracts are unenforceable in federal courts because they involve federally prohibited activity under the Controlled Substance Act, reversing a $31.8 million breach of contract verdict. Cannabis and hemp-derived intoxicant companies should review existing agreements and incorporate state court forum selection, choice of law provisions and alternative dispute resolution clauses to ensure enforceability. 
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Are Cannabis Contracts No Longer Enforceable? A Closer Look at ‘Hello Farms’ Decision
ByPot Shop News
October 29, 2026