Fair Marketing of Motor Fuel Act

Summary

Fair Marketing of Motor Fuel Act - Requires every franchise and renewal agreement between gasoline and diesel fuel refiners, distributors, and retailers to be of not less than five years' duration except in the following instances: (1) where the franchisor holds as lessee and not as owner premises to be subleased to the franchisee, the franchisor shall not be required to offer or to grant a franchise for a term extending beyond the thirtieth day preceding the expiration of the term of the lease under which such franchisor holds the premises at the time of such offer or grant; or (2) where the franchisee has rejected an offer of a franchise for a term of not less than five years' duration, the franchisor may offer and grant a franchise for any shorter term in the franchisor's discretion. Prohibits cancellation or termination of such agreements during the term by the franchisor unless: (1) the franchisee failed to act in good faith in carrying out the terms of the franchise; (2) the franchisee failed to comply without reasonable excuse or justification with essential and reasonable terms of the franchise; (3) a circumstance occurs which is specified in the franchise which circumstance is relevant to the operation of the franchise relationship and where termination or cancellation before the expiration date specified in the franchise is reasonable in light of such circumstance; or (4) the franchisor and the franchisee mutually agree to terminate or cancel the franchise. Requires the franchisor to give written notice to the franchisee prior to cancelling, terminating, or failing to renew the franchise. Provides for judicial review of such cancellations, terminations, or failures to renew.

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1 official file

• Introduced in House

  summary · EN · 7 April 1975

  Open at official source

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