2006 New York Code - Termination Or Refusal To Renew A Franchise Without Good Cause Prohibited; Notice Requirement; Right Of Action.



 
    §  199-c.  Termination  or  refusal  to renew a franchise without good
  cause prohibited; notice requirement; right  of  action.  1.  Except  as
  otherwise  provided  in  this  article,  no distributor or agent thereof
  shall terminate, cancel or refuse to renew any franchise except for good
  cause, which shall include, but not be limited to:
    (a) The dealer's failure to comply with a substantive requirement of a
  franchise agreement;
    (b) The dealer's failure to act in good  faith  in  carrying  out  the
  terms of the franchise.
    (c)  The  distributor's  failure  to  renew  his  lease of the service
  station premises, provided the distributor does not supply  the  service
  station  with  motor fuels for a period of one year after the expiration
  of the lease.
    2. A distributor may elect not to renew the franchise due to the  sale
  or  lease  of  the  service station premises owned by the distributor to
  other than a subsidiary or affiliate of the  distributor  for  any  use,
  provided  the distributor does not supply the service station with motor
  fuels for a period of one year after such sale or  lease;  the  sale  or
  lease  of  the  service station premises to a subsidiary or affiliate of
  the distributor for use other than as a service station; or the  use  of
  the  service  station  premises  by  the distributor for other than as a
  service station.
    3. No distributor may terminate, cancel or refuse to renew a franchise
  agreement for any reason unless he has given ninety days' written notice
  to the dealer of his intent to  terminate,  cancel  or  not  renew  such
  franchise,  provided that in the event of the dealer's default under the
  terms and conditions of the franchise agreement as set out in  paragraph
  a   of   subdivision   one   of   this  section,  the  distributor  may,
  alternatively, give the dealer ten days'  written  notice  to  cure  the
  default,  and  if the default has not been cured within such period, the
  distributor may terminate or cancel the franchise in accordance with the
  notice requirements of the franchise agreements, provided such notice is
  given within ten days or  any  other  period  mutually  agreed  upon  in
  writing after the expiration of the ten-day default period.
    4.  A gasoline dealer may bring an action under this section against a
  distributor in  any  court  of  competent  jurisdiction  for  wrongfully
  terminating,  cancelling  or refusing to renew a franchise and the court
  may award money damages and  grant  such  equitable  relief  as  may  be
  proper.

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