Certain contract restrictions on the sale of renewable motor fuels prohibited.

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37-2-35. Certain contract restrictions on the sale of renewable motor fuels prohibited.

No franchise-related document entered into or renewed on or after July 1, 2008 may contain any provision allowing a franchisor to restrict the franchisee or any affiliate of the franchisee from:

(1)Installing on the marketing premises of the franchisee a renewable fuel pump or tank, except that the franchisee's franchisor may restrict the installation of a tank on leased marketing premises of the franchisor;

(2)Converting an existing tank or pump on the marketing premises of the franchisee for renewable fuel use;

(3)Advertising the sale of any renewable fuel, including through the use of signage;

(4)Selling renewable fuel in any specified area on the marketing premises of the franchisee, including any area in which a name or logo of a franchisor or any other entity appears;

(5)Purchasing renewable fuel from sources other than the franchisor if the franchisor does not offer its own renewable fuel for sale by the franchisee;

(6)Listing renewable fuel availability or prices, including on service station signs, fuel dispensers, or light poles;

(7)Allowing for payment of renewable fuel with any form of payment available for any other type of fuel;

(8)Installing on the marketing premises of the franchisee an ethanol blender pump as defined in §37-2-34.1; or

(9)Using any pump to dispense a specified ethanol blend or range of blends, if the pump is approved by the authority having jurisdiction, as defined in §34-38-23, for dispensing the specified ethanol blend or range of blends.

Nothing in this section authorizes any activity that constitutes mislabeling, misbranding, willful adulteration, or other trademark violations by the franchisee.

Source: SL 2008, ch 201, §2; SL 2011, ch 188, §2.


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