In this subtitle the following words have the meanings indicated. “Controlled outlet” means an outlet which is operated by a distributor or operated by company employees, a subsidiary company, commissioned agent, or by any person who manages the outlet on a fee arrangement with the distributor. The distributor may not: Require the dealer to refuse credit card purchases of gasohol; or Provide that any credit card it issues may not be used for the purchase of gasohol. “Dealer” means a person engaged in the retail sale of gasohol or gasoline products under a marketing agreement, at least 30 percent of whose gross revenue is derived from the retail sale of gasoline products. “Dealer” does not include an employee of a distributor. “Distributor” means a person who: Engages in the sale, consignment, or distribution of gasohol or gasoline products through retail outlets which he owns or leases; and Maintains an oral or written contractual relationship with a dealer for the sale of the products. “Distributor” includes any subsidiary or affiliated corporation in which a distributor holds at least 30 percent voting control. “Farm cooperative” means a cooperative organized under Subtitle 5 of Title 5 of the Corporations and Associations Article. “Gasoline products” includes gasohol. “Independent jobber” means an individual or corporation who purchases gasohol or gasoline products from a wholesaler for resale to a dealer. “Marketing agreement” means an oral or written agreement between a distributor and a dealer under which the dealer is granted the right, for the purpose of engaging in the retail sale of gasohol or gasoline products supplied by the distributor, to: Use a trademark, trade name, service mark, or other identifying symbol or name owned by the distributor; or Occupy premises owned, leased, or controlled by the distributor. “Person” includes an individual, corporation, business trust, statutory trust, estate, trust, partnership, association, two or more persons having a joint or common interest, or any other legal or commercial entity. “Retail sale” means the sale of a product for purposes other than resale.

The General Assembly finds and declares that since the distribution and sale through marketing arrangements of petroleum products in the State vitally affect the economy of the State, and its public interest, welfare, and transportation, it is necessary to define the relationships and responsibilities of the parties to certain agreements pertaining to these marketing arrangements. This subtitle constitutes a statement of the public policy of the State.

Before any marketing agreement is concluded, a distributor shall disclose fully to a prospective dealer the following information: Any gallonage history of the location under negotiation for the shorter of: The three-year period immediately past; or The entire period during which the location has been supplied by the distributor; The name, last known address, and reason for the termination of the marketing agreement of each person who was a dealer at the location during: The five-year period immediately past; or The entire period during which the location has been supplied by the distributor; Any commitment for the sale, demolition, or other disposition of the location; Any training program and any specific goods and services which the distributor will provide for and to the dealer; Any obligation which will be required of the dealer; Any restriction on the sale, transfer, and termination of the agreement; and The total amount of any cash deposit required, any amount of interest to be paid on the deposit, and the conditions for the return of the deposit.

Every marketing agreement is subject to the provisions of this section, whether or not expressly set forth in the agreement. Until midnight of the seventh business day after the day a marketing agreement is signed or entered into, the dealer may cancel it by giving written notice of cancellation to the distributor in person or by registered or certified mail. Within 10 days after delivery of the notice of cancellation, the dealer shall return to the distributor full possession of any service station, location, money, equipment, or merchandise loaned, sold, or delivered under the marketing agreement to the dealer by the distributor. The distributor shall give the dealer full credit or its cash equivalent for all money, equipment, and merchandise returned. The distributor may not set or maintain or attempt to set or maintain the price at which the dealer sells any product, and the price of any product may not be subject to enforcement or coercion by the distributor in any way. However, the distributor may counsel with the dealer concerning prices and may suggest prices to him. A distributor may only require a dealer to keep his retail outlet open for business for a specified number of hours per day or days per week when this requirement is negotiated in good faith by both parties and arrived at in mutual agreement and it is on the basis of a bona fide business need. The distributor may not require the dealer to use any promotion, premium, coupon, give–away, or rebate in the operation of the business. However, if not otherwise prohibited by law, the dealer may participate in a promotional, premium, coupon, give–away, or rebate program sponsored by the distributor. A distributor who intends not to renew a marketing agreement shall give notice of his intent to the retail service station dealer at least 90 days before the expiration of the term of the marketing agreement, whether or not the marketing agreement contains a provision for automatic renewal or, by its terms, expires at a fixed time. Failure to give notice constitutes a renewal of the marketing agreement for a term of one year from its stated expiration date. This notice requirement supersedes the notice provisions of § 8–402(b) of the Real Property Article as well as any notice provision set forth in the marketing agreement. The distributor may not unreasonably withhold his consent to any assignment, transfer, sale, or renewal of a marketing agreement, whether or not the marketing agreement contains a provision for automatic renewal or, by its terms, expires at a fixed time. Notice of intent not to renew a marketing agreement shall set forth, in specific detail, the reasons relied upon by the distributor for the nonrenewal. Except with respect to a cancellation to which subsection (b) of this section applies, within 30 days after the date a marketing agreement is terminated or canceled, whether by mutual agreement or otherwise, the distributor shall repurchase from the dealer at the then current wholesale price all merchantable products purchased by the dealer from the distributor. The distributor may apply the proceeds of any repurchased product against any existing debt owed by the dealer to the distributor. The obligation to repurchase under this subsection is enforceable only to the extent that there are no other valid claims or liens against the products by or on behalf of other creditors of the dealer. In addition to the provisions of subsection (h) of this section, if, without the written consent of the dealer, the distributor terminates, cancels, or unreasonably refuses to renew the marketing agreement, the distributor shall pay to the dealer the full value of any business goodwill which the dealer enjoys at the time he is notified of the termination, cancellation, or refusal to renew. The distributor shall make the payment required by this subsection within 30 days from the effective date of the termination, cancellation, or refusal to renew. This subsection does not apply if the dealer materially breaches the marketing agreement. The marketing agreement may not waive the right of either party to trial by jury or interposition of counter–claims or cross–claims. A clause in any lease or contract from a producer or refiner to a dealer for the use of a retail service station providing for a minimum monthly rental based on a certain volume of sales is not enforceable to the extent the minimum rent exceeds a sum equal to the minimum rent provided for in the lease or contract times a fraction, the denominator of which is the number of gallons of gasoline on which the minimum rent is based and the numerator of which is the number of gallons of gasoline made available by the producer or refiner to the dealer for that month. A distributor who sets the retail price of gasoline through controlled outlets shall provide those noncontrolled outlets that it supplies with gasoline products at a wholesale price of at least 4 cents per gallon under the lowest price posted for each grade of gasoline at any controlled outlet. Violation of this subsection constitutes price discrimination as prohibited by § 11–204(a)(3) of this title. The provisions of this act do not apply to independent jobbers and farm cooperatives. A franchise created by a marketing agreement under this subtitle is personal property and shall devolve on death or retirement of a service station dealer to a designated successor in interest of the dealer, limited to the dealer’s spouse, adult child, or adult stepchild. Subject to the distributor’s approval which may not be unreasonably withheld, the successor dealer shall be granted a 1 year trial marketing agreement by the distributor, in the name of the successor dealer, under the same terms and conditions as were contained in the original agreement. In accordance with subsection (g) of this section, during the period of the trial marketing agreement, and with the consent of the distributor, the successor dealer may: Sell the business assets; Assign the marketing agreement; or Renew the marketing agreement under terms and conditions agreeable to the distributor and the successor dealer.

Subject to the notice requirements of § 11-306 of this subtitle, in any action filed under this subtitle which is based on a termination or cancellation of a marketing agreement, it is a defense that the marketing agreement was terminated or canceled: By mutual agreement of the parties, provided however, that the mutual agreement is void and unenforceable unless it clearly states that it is not effective until the seventh business day after the date of its execution during which time either the dealer or the distributor have the absolute right to rescind such mutual agreement by written notice to the other; Because of the bankruptcy or insolvency of the dealer; Because the dealer failed to comply with an express requirement of the marketing agreement; or Because the dealer failed to act in good faith in carrying out the terms of the marketing agreement.

A party to a marketing agreement may not raise any defense set out in § 11-305 of this subtitle unless he gives written notice to the other party of his intent to terminate or cancel the agreement. This notice shall be given in person or by registered or certified mail at least 60 days before the date on which he intends to terminate or cancel it. The 60-day notice is not required if at the time of termination or cancellation of the marketing agreement any of the following is proven: Criminal misconduct; Fraud; Abandonment; Bankruptcy or insolvency of the dealer; Adulteration of product; or Giving a check which is dishonored for insufficient funds. If notice is given by registered or certified mail, it shall be effective on the date of mailing.

Any person who violates any provision of this subtitle is liable for damages caused by the violation and is subject to the other legal or equitable remedies available to the party injured by the violation.

This subtitle may be cited as the Maryland Gasohol and Gasoline Products Marketing Act.