Petroleum Marketing Practices Act. State Statutes 1. Tort Claims Fraud, tortious interference and recoupment claims frequently find their way into dealer complaints. For example, a dealer may argue the dealer agreement was induced by a fraudulent misrepresentation. Courts have expressed differing views as to whether an integration clause precludes such claims.
Most states recognize a cause of action for interference with contracts or business expectancies.
Courts generally hold that a manufacturer's disapproval of a dealership transfer is not tortious interference. However, if a manufacturer has contacted a dealer's customers, a claim might be asserted that the manufacturer interfered with that relationship. Finally, in some states the doctrine of recoupment precludes termination before a dealer has had a reasonable length of time to recover its investment. Generally, recoupment is not applicable where the contract is for a term or includes termination provisions. A termination notice should be crafted only after the risks of legal action have been considered.