Page:United States Statutes at Large Volume 92 Part 1.djvu/382

 92 STAT. 328

PUBLIC LAW 95-297—JUNE 19, 1978 lation, or other fault or negligence is related to action taken in bad faith by the franchisor; (7) destruction (other than by the franchisor) of all or a substantial part of the marketing premises; (8) failure by the franchisee to pay to the franchisor in a timely manner when due all sums to which the franchisor is legally entitled; (9) failure by the franchisee to operate the marketing premises for— (A) 7 consecutive days, or (B) such lesser period which under the facts and circumstances constitutes an unreasonable period of time; (10) willful adulteration, mislabeling or misbranding of motor fuels or other trademark violations by the franchisee; (11) knowing failure of the franchisee to comply with Federal, State, or local laws or regulations relevant to the operation of the marketing premises; and (12) conviction of the franchisee of any felony involving moral turpitude. (d) In the case of any termination of a franchise (entered into or renewed on or after the date of enactment of this Act), or in the case of any nonrenewal of a franchise relationship (without regard to the date on which such franchise relationship was entered into or renewed) — (1) if such termination or nonrenewal is based upon an event described in subsection (c)(5), the franchisor shall fairly apportion between the franchisor and the franchisee compensation, if any, received by the franchisor based upon any loss of business opportunity or good will; and (2) if such tennination or nonrenewal is based upon an event described in subsection (c)(7) and the leased marketing premises are subsequently rebuilt or replaced by the franchisor and operated under a franchise, the franchisor shall, within a reasonable period of time, grant to the franchisee a right of first refusal of the franchise under which such premises are to be operated. TRIAL FRANCHISES AND I N T E R I M F R A N C H I S E S;

15 USC 2803.

Definitions.

NONRENEWAL

SEC. 103. (a) The provisions of section 102 shall not apply to the nonrenewal of any franchise relationship— (1) under a trial franchise; or (2) under an interim franchise. (b) For purposes of this section— (1) The term "trial franchise" means any franchise— (A) which is entered into on or after the date of enactment of this Act; (B) the franchisee of which has not previously been a party to a franchise with the franchisor; (C) the initial term of which is for a period of not more than 1 year; and (D) which is in writing and states clearly and conspicuously— (i) that the franchise is a trial franchise; (ii) the duration of the initial term of the franchise; (iii) that the franchisor may fail to renew the franchise relationship at the conclusion of the initial term stated in the franchise by notifying the franchisee, in

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