(a) (1) A person may not knowingly require a purchaser or consignee to receive obscene matter as a condition to a sale, allocation, consignment, or delivery for resale of a paper, magazine, book, periodical, publication, or other merchandise.

(2) In response to a person’s return of or failure to accept obscene matter, a person may not knowingly:

(i) deny or revoke a franchise;

(ii) threaten to deny or revoke a franchise; or

(iii) impose a financial or other penalty.

(b) A person who violates this section is guilty of a misdemeanor and on conviction is subject to:

(1) for a first violation, imprisonment not exceeding 1 year or a fine not exceeding $1,000 or both; and

(2) for each subsequent violation, imprisonment not exceeding 3 years or a fine not exceeding $5,000 or both.