Summary: H.R.5023 — 98th Congress (1983-1984)All Information (Except Text)

There is one summary for H.R.5023. Bill summaries are authored by CRS.

Shown Here:
Introduced in House (03/05/1984)

Petroleum Marketing Practices Act Amendments of 1984 - Amends the Petroleum Marketing Practices Act to: (1) redefine the term "failure"; and (2) define the terms "constructive termination" and "similar motor fuel marketing operations." Defines "constructive termination" to mean: (1) the failure by the franchisor to supply the franchisee with motor fuel in an amount equal to the minimum specified in the franchise agreement; (2) the failure by the franchisor to make motor fuel available to the franchisee such minimum amount at a price which enables the franchisee to compete with similar motor fuel marketing operations of the franchisor; or (3) any adjustment in the quantity of fuel a franchisee is required or entitled to receive unless the franchisor can show that either the adjustment is applied equally to all franchisees and marketing operations of the franchisor within the relevant geographic area, or, if it is a downward adjustment, the franchisor can show that it is reasonable.

Prohibits a motor fuel franchisor from constructively terminating a franchise. Requires a franchisor, in certain circumstances prior to terminating a franchise, to make a bona fide reasonable offer to transfer the franchise to the franchisee. Permits nonrenewal of a franchise relationship if the franchisor and franchisee cannot agree to changes or additions to the provisions of the franchise which are fair and reasonable. Prohibits nonrenewal because of the failure of the franchisor and franchisee to agree to changes or additions to the provisions of the franchise which relate to materially altering, adding to, or replacing the marketing premises. Permits nonrenewal, in a situation where renewal is presently permitted, when it would be uneconomical to the franchisor despite any reasonable changes acceptable to the franchisee, only if the franchisor demonstrates that the nonrenewal is not being made with the intent of avoiding competition with the franchisee.

Requires a franchisor to notify a franchisee, 90 days prior to the franchisor's final opportunity to exercise an option to buy or to continue leasing the land where the franchise is located, of the name, address, and phone number of the owner or holder of the underlying lease. Provides that if a franchisee enters into an agreement with the owner or lessor to maintain possession of the premises, then the franchise agreement may continue, at the option of the franchisee.

Requires any franchisor who competes with its own franchisees to supply motor fuel to its franchisees at a price and on terms which reasonably enable the franchisee to compete with the franchisor. States that the burden of proof is on the franchisor to show lack of competition.

Revises the definition of "trial franchise."

Permits a franchisee to maintain a civil action against a franchisor if the franchisor constructively terminates the franchise.

States that the death, retirement, or disability of a franchisee shall not be grounds for termination or nonrenewal of the franchise if, prior the franchisee's death, retirement, or disability, the franchisee provides the franchisor with a succession plan. Permits termination or nonrenewal if: (1) the franchisor notifies the franchisee in writing, within 30 days of receipt of the plan, of the franchisor's rejection of the plan; (2) the rejection notice includes reasons for the rejection; and (3) the rejection is reasonable.

Provides a franchisee with the right to sell or otherwise transfer the franchise subject to the approval of the franchisor. Prohibits approval from being withheld unreasonably.