2010 Tennessee Code
Title 47 - Commercial Instruments And Transactions
Chapter 25 - Trade Practices
Part 6 - Petroleum Trade Practices
47-25-605 - Improper franchise termination Presumption Damages.

47-25-605. Improper franchise termination Presumption Damages.

(a)  Any vertically integrated producer who:

     (1)  Terminates, fails to renew, or in any manner attempts to cause the cancellation of a franchise agreement with a dealer through the use of price or service discrimination, the imposition of unreasonable hours of operation requirements, or products allocation discrimination, or otherwise attempts to effectuate the termination of a franchise agreement for reasons other than those permitted in § 47-25-604;

     (2)  Has operated under a franchise with such vertically integrated producer for one (1) year or more; and

     (3)  Upon the termination of the franchise agreement, converts the premises into a producer operated facility within two (2) years after the franchise agreement is terminated;

shall be presumed to engage in operations, arrangements, or agreements which tend to lessen full and free competition and enhance vertical integration in violation of public policy and this part and in violation of part 1 of this chapter.

(b)  Any corporation adjudicated to be in violation of this provision shall be liable for the damages and penalties set forth in part 1 of this chapter.

(c)  Presumptions arising under the operation of this section are rebuttable and may be overcome by clear and convincing evidence to the contrary.

[Acts 1975, ch. 232, § 1; T.C.A., § 69-705.]