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This entry was published on 2014-09-22
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SECTION 199-C
Termination or refusal to renew a franchise without good cause prohibited; notice requirement; right of action
General Business (GBS) CHAPTER 20, ARTICLE 11-B
§ 199-c. Termination or refusal to renew a franchise without good
cause prohibited; notice requirement; right of action. 1. Except as
otherwise provided in this article, no distributor or agent thereof
shall terminate, cancel or refuse to renew any franchise except for good
cause, which shall include, but not be limited to:

(a) The dealer's failure to comply with a substantive requirement of a
franchise agreement;

(b) The dealer's failure to act in good faith in carrying out the
terms of the franchise.

(c) The distributor's failure to renew his lease of the service
station premises, provided the distributor does not supply the service
station with motor fuels for a period of one year after the expiration
of the lease.

2. A distributor may elect not to renew the franchise due to the sale
or lease of the service station premises owned by the distributor to
other than a subsidiary or affiliate of the distributor for any use,
provided the distributor does not supply the service station with motor
fuels for a period of one year after such sale or lease; the sale or
lease of the service station premises to a subsidiary or affiliate of
the distributor for use other than as a service station; or the use of
the service station premises by the distributor for other than as a
service station.

3. No distributor may terminate, cancel or refuse to renew a franchise
agreement for any reason unless he has given ninety days' written notice
to the dealer of his intent to terminate, cancel or not renew such
franchise, provided that in the event of the dealer's default under the
terms and conditions of the franchise agreement as set out in paragraph
a of subdivision one of this section, the distributor may,
alternatively, give the dealer ten days' written notice to cure the
default, and if the default has not been cured within such period, the
distributor may terminate or cancel the franchise in accordance with the
notice requirements of the franchise agreements, provided such notice is
given within ten days or any other period mutually agreed upon in
writing after the expiration of the ten-day default period.

4. A gasoline dealer may bring an action under this section against a
distributor in any court of competent jurisdiction for wrongfully
terminating, cancelling or refusing to renew a franchise and the court
may award money damages and grant such equitable relief as may be
proper.