15 U.S.C. § 2801 — Definitions

Page 1946 TITLE 15—COMMERCE AND TRADE § 2801 For complete classification of this title to the Code, see Tables. CHAPTER 55—PETROLEUM MARKETING PRACTICES SUBCHAPTER I—FRANCHISE PROTECTION Sec. 2801. Definitions. 2802. Franchise relationship. 2803. Trial and interim franchises. 2804. Notification of termination or nonrenewal of franchise relationship. 2805. Enforcement provisions. 2806. Relationship of statutory provisions to State and local laws. 2807. Prohibition on restriction of installation of renewable fuel pumps. SUBCHAPTER II—OCTANE DISCLOSURE 2821. Definitions. 2822. Automotive fuel rating testing and disclosure requirements. 2823. Administration and enforcement provisions. 2824. Relationship of statutory provisions to State and local laws. SUBCHAPTER III—SUBSIDIZATION OF MOTOR FUEL MARKETING 2841. Study by Secretary of Energy. SUBCHAPTER I—FRANCHISE PROTECTION § 2801. Definitions As used in this subchapter: (1)(A) The term ‘‘franchise’’ means any con- tract— (i) between a refiner and a distributor, (ii) between a refiner and a retailer, (iii) between a distributor and another dis- tributor, or (iv) between a distributor and a retailer, under which a refiner or distributor (as the case may be) authorizes or permits a retailer or dis- tributor to use, in connection with the sale, con- signment, or distribution of motor fuel, a trade- mark which is owned or controlled by such re- finer or by a refiner which supplies motor fuel to the distributor which authorizes or permits such use. (B) The term ‘‘franchise’’ includes— (i) any contract under which a retailer or distributor (as the case may be) is authorized or permitted to occupy leased marketing premises, which premises are to be employed in connection with the sale, consignment, or distribution of motor fuel under a trademark which is owned or controlled by such refiner or by a refiner which supplies motor fuel to the distributor which authorizes or permits such occupancy; (ii) any contract pertaining to the supply of motor fuel which is to be sold, consigned or distributed— (I) under a trademark owned or controlled by a refiner; or (II) under a contract which has existed continuously since May 15, 1973, and pursu- ant to which, on May 15, 1973, motor fuel was sold, consigned or distributed under a trade- mark owned or controlled on such date by a refiner; and (iii) the unexpired portion of any franchise, as defined by the preceding provisions of this paragraph, which is transferred or assigned as authorized by the provisions of such franchise or by any applicable provision of State law which permits such transfer or assignment without regard to any provision of the fran- chise. (2) The term ‘‘franchise relationship’’ means the respective motor fuel marketing or distribu- tion obligations and responsibilities of a franchisor and a franchisee which result from the marketing of motor fuel under a franchise. (3) The term ‘‘franchisor’’ means a refiner or distributor (as the case may be) who authorizes or permits, under a franchise, a retailer or dis- tributor to use a trademark in connection with the sale, consignment, or distribution of motor fuel. (4) The term ‘‘franchisee’’ means a retailer or distributor (as the case may be) who is author- ized or permitted, under a franchise, to use a trademark in connection with the sale, consign- ment, or distribution of motor fuel. (5) The term ‘‘refiner’’ means any person en- gaged in the refining of crude oil to produce motor fuel, and includes any affiliate of such person. (6) The term ‘‘distributor’’ means any person, including any affiliate of such person, who— (A) purchases motor fuel for sale, consign- ment, or distribution to another; or (B) receives motor fuel on consignment for consignment or distribution to his own motor fuel accounts or to accounts of his supplier, but shall not include a person who is an em- ployee of, or merely serves as a common car- rier providing transportation service for, such supplier. (7) The term ‘‘retailer’’ means any person who purchases motor fuel for sale to the general pub- lic for ultimate consumption. (8) The term ‘‘marketing premises’’ means, in the case of any franchise, premises which, under such franchise, are to be employed by the franchisee in connection with sale, consignment, or distribution of motor fuel. (9) The term ‘‘leased marketing premises’’ means marketing premises owned, leased, or in any way controlled by a franchisor and which the franchisee is authorized or permitted, under the franchise, to employ in connection with the sale, consignment, or distribution of motor fuel. (10) The term ‘‘contract’’ means any oral or written agreement. For supply purposes, deliv- ery levels during the same month of the pre- vious year shall be prima facie evidence of an agreement to deliver such levels. (11) The term ‘‘trademark’’ means any trade- mark, trade name, service mark, or other identi- fying symbol or name. (12) The term ‘‘motor fuel’’ means gasoline and diesel fuel of a type distributed for use as a fuel in self-propelled vehicles designed primarily for use on public streets, roads, and highways. (13) The term ‘‘failure’’ does not include— (A) any failure which is only technical or unimportant to the franchise relationship; (B) any failure for a cause beyond the rea- sonable control of the franchisee; or (C) any failure based on a provision of the franchise which is illegal or unenforceable Page 1947 TITLE 15—COMMERCE AND TRADE § 2802 under the law of any State (or subdivision thereof). (14) The terms ‘‘fail to renew’’ and ‘‘non- renewal’’ mean, with respect to any franchise relationship, a failure to reinstate, continue, or extend the franchise relationship— (A) at the conclusion of the term, or on the expiration date, stated in the relevant fran- chise; (B) at any time, in the case of the relevant franchise which does not state a term of dura- tion or an expiration date; or (C) following a termination (on or after June 19, 1978) of the relevant franchise which was entered into prior to June 19, 1978, and has not been renewed after such date. (15) The term ‘‘affiliate’’ means any person who (other than by means of a franchise) con- trols, is controlled by, or is under common con- trol with, any other person. (16) The term ‘‘relevant geographic market area’’ includes a State or a standard metropoli- tan statistical area as periodically established by the Office of Management and Budget. (17) The term ‘‘termination’’ includes can- cellation. (18) The term ‘‘commerce’’ means any trade, traffic, transportation, exchange, or other com- merce— (A) between any State and any place outside of such State; or (B) which affects any trade, transportation, exchange, or other commerce described in sub- paragraph (A). (19) The term ‘‘State’’ means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Is- lands, American Samoa, Guam, and any other commonwealth, territory, or possession of the United States. (Pub. L. 95–297, title I, § 101, June 19, 1978, 92 Stat. 322; Pub. L. 103–371, § 6, Oct. 19, 1994, 108 Stat. 3486; Pub. L. 110–140, title II, § 241(c)(1), Dec. 19, 2007, 121 Stat. 1540.) Editorial Notes AMENDMENTS 2007—Par. (13)(C). Pub. L. 110–140 aligned margins. 1994—Par. (13)(C). Pub. L. 103–371 added subpar. (C). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2007 AMENDMENT Amendment by Pub. L. 110–140 effective on the date that is 1 day after Dec. 19, 2007, see section 1601 of Pub. L. 110–140, set out as an Effective Date note under sec- tion 1824 of Title 2, The Congress. SHORT TITLE OF 1994 AMENDMENT Pub. L. 103–371, § 1, Oct. 19, 1994, 108 Stat. 3484, pro- vided that: ‘‘This Act [amending this section and sec- tions 2802, 2805, and 2806 of this title] may be cited as the ‘Petroleum Marketing Practices Act Amendments of 1994’.’’ SHORT TITLE Pub. L. 95–297, § 1, June 19, 1978, 92 Stat. 322, provided: ‘‘That this Act [enacting this chapter and provisions set out as a note under section 2822 of this title] may be cited as the ‘Petroleum Marketing Practices Act’.’’ § 2802. Franchise relationship (a) General prohibition against termination or nonrenewal Except as provided in subsection (b) and sec- tion 2803 of this title, no franchisor engaged in the sale, consignment, or distribution of motor fuel in commerce may— (1) terminate any franchise (entered into or renewed on or after June 19, 1978) prior to the conclusion of the term, or the expiration date, stated in the franchise; or (2) fail to renew any franchise relationship (without regard to the date on which the rel- evant franchise was entered into or renewed). (b) Precondition and grounds for termination or nonrenewal (1) Any franchisor may terminate any fran- chise (entered into or renewed on or after June 19, 1978) or may fail to renew any franchise rela- tionship, if— (A) the notification requirements of section 2804 of this title are met; and (B) such termination is based upon a ground described in paragraph (2) or such nonrenewal is based upon a ground described in paragraph (2) or (3). (2) For purposes of this subsection, the fol- lowing are grounds for termination of a fran- chise or nonrenewal of a franchise relationship: (A) A failure by the franchisee to comply with any provision of the franchise, which pro- vision is both reasonable and of material sig- nificance to the franchise relationship, if the franchisor first acquired actual or construc- tive knowledge of such failure— (i) not more than 120 days prior to the date on which notification of termination or non- renewal is given, if notification is given pur- suant to section 2804(a) of this title; or (ii) not more than 60 days prior to the date on which notification of termination or non- renewal is given, if less than 90 days notifi- cation is given pursuant to section 2804(b)(1) of this title. (B) A failure by the franchisee to exert good faith efforts to carry out the provisions of the franchise, if— (i) the franchisee was apprised by the franchisor in writing of such failure and was afforded a reasonable opportunity to exert good faith efforts to carry out such provi- sions; and (ii) such failure thereafter continued with- in the period which began not more than 180 days before the date notification of termi- nation or nonrenewal was given pursuant to section 2804 of this title. (C) The occurrence of an event which is rel- evant to the franchise relationship and as a re- sult of which termination of the franchise or nonrenewal of the franchise relationship is reasonable, if such event occurs during the pe- riod the franchise is in effect and the franchisor first acquired actual or construc- tive knowledge of such occurrence— (i) not more than 120 days prior to the date on which notification of termination or non- renewal is given, if notification is given pur- suant to section 2804(a) of this title; or