Page:United States Statutes at Large Volume 92 Part 1.djvu/381

 PUBLIC LAW 95-297—JUNE 19, 1978

92 STAT. 327

tion made by the franchisor in good faith and in the normal course of business, if— (i) such determination is— (I) to convert the leased marketing premises to a use other than the sale or distribution of motor fuel, ( II) to materially alter, add to, or replace such premises, ( III) to sell such premises, or (IV) that renewal of the franchise relationship is likely to be uneconomical to the franchisor despite any reasonable changes or reasonable additions to the provisions of the franchise which may be acceptable to the franchisee; (ii) with respect to a determination referred to in subclause (II) or ( l Y), such determination is not made for the purpose of converting the leased marketing premises to operation by employees or agents of the franchisor for such franchisor's own account; and (iii) in the case of leased marketing premises such franchisor, during the 90-day period after notification was given pursuant to section 104, either— (I) made a bona fide offer to sell, transfer, or assign to the franchisee such franchisor's interests in such premises; or (II) if applicable, offered the franchisee a right of first refusal of at least 45-days duration of an offer, made by another, to purchase such franchisor's interest in such premises. (c) As used in subsection (b)(2)(C), the term "an event which is Definition, relevant to the franchise relationship and as a result of which termination of the franchise or nonrenewal of the franchise relationship is T'easonable" includes events such as— (1) fraud or criminal misconduct by the franchisee relevant to the operation of the marketing premises; (2) declaration of bankruptcy or judicial determination of insolvency of the franchisee; ('8) continuing severe physical or mental disability of the franchisee of at least 3 months duration which renders the franchisee unable to provide for the continued proper operation of the marketing premises; (4) loss of the franchisor's right to grant possession of the leased marketing premises through expiration of an underlying lease, if the franchisee was notified in writing, prior to the commencement of the term of the then existinsi- franchise— (A) of the duration of the underlying lease, and (B) of the fact that such underlying lease might expire and not be renewed during the term of such franchise (in the case of termination) or at the end of such term (in the case of nonrenewal); (5) condemnation or other taking, in whole or in part, of the marketing premises pursuant to the power- of eminent domain; (6) loss of the franchisor's right to grant the right to use the trademark which is the subject of the franchise, unless such loss was due to trademark abuse, violation of Federal or State law, or other fault or nesfligence of the franchisor, which such abuse, vio-

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