A petroleum distributor shall not terminate, cancel, or refuse to renew a franchise with a gasoline dealer without first giving the dealer written notice by certified mail at least ninety days in advance of the effective date of such action as set forth in the notice. Notwithstanding any provision to the contrary contained in this section, a petroleum distributor may terminate, cancel, or refuse to renew a franchise with a gasoline dealer effective five days after the posting of written notice by certified mail to the gasoline dealer at the dealer’s last known address, if such action is based on any of the following reasons:

(1) Citation of the gasoline dealer by the measurement standards branch for adulteration, substitution, contamination, or other degradation of petroleum products sold under the trademark of the petroleum distributor; provided such adulteration, substitution, contamination, or other degradation is caused by the wilful or negligent act of the gasoline dealer;

Terms Used In Hawaii Revised Statutes 486H-3

  • Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
  • Conviction: A judgement of guilt against a criminal defendant.
  • Franchise: means :

    (1) Any agreement or related agreements between a petroleum distributor and a gasoline dealer under which the gasoline dealer is granted the right to use a trademark, trade name, service mark, or other identifying symbol or name owned by the distributor in connection with the retail sale of petroleum products supplied by the petroleum distributor; or

    (2) Any agreement or related agreements described in paragraph (1) and any agreement between a petroleum distributor and a gasoline dealer under which the gasoline dealer is granted the right to occupy the premises owned, leased, or controlled by the distributor, for the purpose of engaging in the retail sale of petroleum products supplied by the distributor. See Hawaii Revised Statutes 486H-1

  • Gasoline: includes gasoline, benzol, benzine, naphtha, and any other liquid prepared, advertised, offered for sale, sold for use as, or used for, the generation of power for the propulsion of motor vehicles, including any product obtained by blending together any one or more petroleum products with or without other products, if the resultant product is capable of the same use. See Hawaii Revised Statutes 486H-1
  • Gasoline dealer: means any person engaged in the retail sale of petroleum products in the United States under a franchise agreement entered into with a petroleum distributor. See Hawaii Revised Statutes 486H-1
  • Petroleum distributor: means any person engaged in the sale, consignment, or distribution of petroleum products to retail outlets that it owns, leases, or otherwise controls. See Hawaii Revised Statutes 486H-1
  • Petroleum products: includes motor vehicle fuel, residual oils number 4, 5, and 6, and all grades of jet (turbo) fuel. See Hawaii Revised Statutes 486H-1
(2) Voluntary abandonment of the franchise relationship by the gasoline dealer;
(3) Conviction of the gasoline dealer of a crime involving the business conducted pursuant to the franchise; or
(4) Adjudication of bankruptcy of the gasoline dealer, or the dealer’s becoming insolvent in the sense that the dealer cannot meet the dealer’s financial obligations when due.

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