44-1557. Required provisions in agreements
between distributors and dealers
Every agreement between a distributor and a dealer shall be in writing and contain:
1. In the absence of any express agreement, the dealer shall not be required to
participate financially in the use of any premium, coupon, give-away, or rebate in the
operation of his retail outlet, provided that the distributor may require the dealer to
distribute to customers premiums, coupons or give-aways which are furnished to the dealer
at the expense of the distributor.
2. The term of the initial agreement between the distributor and the dealer
relating to specific premises shall not be less than one year and the term of all
subsequent agreements between the distributor and the dealer shall not be for fewer than
three years, provided that where the distributor is the lessee of the premises, this
paragraph shall not be construed to require a term of greater duration than the remainder
of the term to which the distributor is entitled under its lease, together with any
renewal rights which the distributor may have, and further provided that notwithstanding
any other provision of this article to the contrary a distributor may reserve the right
to cancel such agreement without cause upon thirty days' notice during the first six
months of the initial term thereof when no previous distributor-dealer relationship
existed between the parties thereto. Agreements entered into by distributors who are not
also engaged in the refining of gasoline may be for shorter terms.
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