§ 199-c. Termination or refusal to renew a franchise without good cause prohibited; notice requirement; right of action. 1. Except as otherwise provided in this article, no distributor or agent thereof shall terminate, cancel or refuse to renew any franchise except for good cause, which shall include, but not be limited to:

Terms Used In N.Y. General Business Law 199-C

  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Dealer: means any person engaged in the retail sale of motor fuels for use in motor vehicles under a franchise entered into with a distributor. See N.Y. General Business Law 199-A
  • Distributor: means any person engaged in the sale, consignment, or distribution of motor fuels to dealers. See N.Y. General Business Law 199-A
  • Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
  • Franchise: means any agreement between a distributor and a dealer under which the dealer is granted the right to use a trademark, trade name, service mark, or other identifying symbol or name owned by the distributor, or to which the distributor has the right to authorize the use thereof, and is furnished by the distributor with products to be sold at retail under such trademark, trade name, service mark, or other identifying symbol or name or any agreement between a distributor and a dealer under which the dealer is granted the right to occupy or use premises or facilities owned, leased, or controlled by the distributor, for the purpose of engaging in the retail sale of motor fuels of the distributor, provided that an agreement by one distributor to lease premises or facilities to another distributor shall not constitute a franchise. See N.Y. General Business Law 199-A
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Service Station: means any premises whereon the retail sale of motor fuels is conducted as the principal business. See N.Y. General Business Law 199-A

(a) The dealer's failure to comply with a substantive requirement of a franchise agreement;

(b) The dealer's failure to act in good faith in carrying out the terms of the franchise.

(c) The distributor's failure to renew his lease of the service station premises, provided the distributor does not supply the service station with motor fuels for a period of one year after the expiration of the lease.

2. A distributor may elect not to renew the franchise due to the sale or lease of the service station premises owned by the distributor to other than a subsidiary or affiliate of the distributor for any use, provided the distributor does not supply the service station with motor fuels for a period of one year after such sale or lease; the sale or lease of the service station premises to a subsidiary or affiliate of the distributor for use other than as a service station; or the use of the service station premises by the distributor for other than as a service station.

3. No distributor may terminate, cancel or refuse to renew a franchise agreement for any reason unless he has given ninety days' written notice to the dealer of his intent to terminate, cancel or not renew such franchise, provided that in the event of the dealer's default under the terms and conditions of the franchise agreement as set out in paragraph a of subdivision one of this section, the distributor may, alternatively, give the dealer ten days' written notice to cure the default, and if the default has not been cured within such period, the distributor may terminate or cancel the franchise in accordance with the notice requirements of the franchise agreements, provided such notice is given within ten days or any other period mutually agreed upon in writing after the expiration of the ten-day default period.

4. A gasoline dealer may bring an action under this section against a distributor in any court of competent jurisdiction for wrongfully terminating, cancelling or refusing to renew a franchise and the court may award money damages and grant such equitable relief as may be proper.

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