§486H-3 - Notice of termination, cancellation, or nonrenewal.
§486H-3 Notice of termination,
cancellation, or nonrenewal. A petroleum distributor shall not terminate,
cancel, or refuse to renew a franchise with a gasoline dealer without first
giving the dealer written notice by certified mail at least ninety days in
advance of the effective date of such action as set forth in the notice.
Notwithstanding any provision to the contrary contained in this section, a
petroleum distributor may terminate, cancel, or refuse to renew a franchise
with a gasoline dealer effective five days after the posting of written notice
by certified mail to the gasoline dealer at the dealer's last known address, if
such action is based on any of the following reasons:
(1) Citation of the gasoline dealer by the
measurement standards branch for adulteration, substitution, contamination, or
other degradation of petroleum products sold under the trademark of the
petroleum distributor; provided such adulteration, substitution, contamination,
or other degradation is caused by the wilful or negligent act of the gasoline
dealer;
(2) Voluntary abandonment of the franchise
relationship by the gasoline dealer;
(3) Conviction of the gasoline dealer of a crime
involving the business conducted pursuant to the franchise; or
(4) Adjudication of bankruptcy of the gasoline
dealer, or the dealer's becoming insolvent in the sense that the dealer cannot
meet the dealer's financial obligations when due. [L 1975, c 133, pt of §1; gen
ch 1985; am L 1986, c 339, §78; am L 1998, c 192, §5]