Gas Station Law and PMPA
The Petroleum Marketing Practices Act (PMPA) is a federal law regarding the relationship between gasoline refiners or distributors and their retailers. Among other provisions, it sets certain requirements for the termination or nonrenewal of retail sale agreements and/or leases, prohibiting franchisors from terminating a franchise, or failing to renew one, except in accordance with its provisions. It is intended to protect distributors and retailers. A supplier may terminate a franchise only for certain specific reasons, including the franchisee's failure to make a good faith effort to carry out the terms of the franchise or if the supplier loses the right to grant use of the trademark under which the gasoline is sold. A supplier may choose not to renew a franchise for all of the reasons it may terminate a franchise and for certain
other additional reasons. The PMPA preempts state laws concerning gasoline franchise termination and non-renewal. Distributors need to consider the provisions of the PMPA in all of their dealings with gasoline retailers.
The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. |
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