State Codes and Statutes
Statutes > Utah > Title-13 > Chapter-12 > 13-12-313-12-3. Refiners or distributors -- Unlawful practices -- Marketing agreementswith dealers.
No refiner or distributor, directly or indirectly or through any office, agent, or employee,shall engage in any of the following practices:
(1) requiring a dealer, at the time of entering into a marketing agreement, to agree to arelease, assignment, novation, waiver or estoppel which would relieve any person from anyprovision of this act;
(2) prohibiting, directly or indirectly, the right of free association among dealers for anylawful purpose;
(3) requiring a dealer to keep his retail outlet open for business for any specified numberof hours per day, or days per week, unless those requirements are set forth in writing at the timeof entering into the marketing agreement;
(4) fixing or maintaining the price at which the dealer must sell products, or attemptingto fix or maintain those prices, through any form of coercion whatsoever; provided, that nothingherein shall be construed to prohibit a distributor or refiner from suggesting prices or counselingwith dealers concerning those prices;
(5) requiring a dealer to use or utilize any promotion, premium, coupon, give-away, salespromotion or rebate in the operation of the business; provided that nothing herein shall beconstrued to prohibit a dealer from participating financially in a promotion, premium, coupon,give-away, sales promotion or rebate sponsored by the distributor or refiner if agreed tovoluntarily by the parties;
(6) terminating, canceling or failing to renew any marketing agreement without havingfirst given written notice setting forth all the reasons for such termination, cancellation, or intentnot to renew the dealer at least 90 days in advance of such termination, cancellation, or failure torenew, except:
(a) where the alleged grounds are voluntary abandonment by the dealer of the marketingagreement relationship in which event the aforementioned written notice shall be given fivebusiness days in advance of such termination, cancellation, or failure to renew; and
(b) where the alleged grounds are caused by the conviction of the dealer or distributor ina court of competent jurisdiction of a criminal offense directly related to the business conductedpursuant to the marketing agreement, or the bankruptcy of the dealer or distributor, in whichevent the aforementioned termination, cancellation, or failure to renew may be effectiveimmediately following such conviction or bankruptcy;
(c) where the alleged grounds are:
(i) failure of the dealer to substantially comply with the requirements of the marketingagreement;
(ii) action of the dealer fraudulently advising members of the motoring public of thenecessity for unneeded automotive repairs, parts or accessories;
(iii) action of the dealer fraudulently representing either expressly or impliedly the trademark or brand of product being sold by the dealer;
(iv) failure of the dealer to maintain the premises in a sufficiently clean and healthfulmanner to avoid constituting a nuisance to members of the motoring public or adjoining propertyowners as determined by the local board of health authority;
in which event the distributor shall provide the dealer with written notice of his intent toterminate, cancel or fail to renew, following which the dealer shall be allowed 10 days in which
to comply, correct or respond to said allegations before further action can be taken by thedistributor.
Amended by Chapter 378, 2010 General Session
