An Act to provide for the protection of franchised distributors and retailers of motor fuel and to encourage conservation of automotive gasoline and competition in the marketing of such gasoline by requiring that information regarding the octane rating of automotive gasoline be disclosed to consumers.
PL 95-297 (H.R.130), enacted 06/19/1978

92 STAT. 322 
PUBLIC LAW 95-297—JUNE 19, 1978 
June 19, 1978 
[H.R. 130] 
Petroleum 
Marketing 
Practices Act. 
15 u s e 2801 
note. 
Public Law 95-297 
95th Congress 
An Act 
To provide for the protection of franchised distributors and retailers of motor 
fuel and to encourage conservation of automotive gasoline and competition in 
the marketing of such gasoline by requiring that information regarding the 
octane rating of automotive gasoline be disclosed to consumers. 
Be it enacted hy the Senate and Ilov^e of Representatives of the 
United States of America in Congress assembled, That this Act may be 
cited as the "Petroleum Marketing Practices Act". 
TABLE OF CONTENTS 
TITLE I—FRANCHISE PROTECTION 
Sec. 101. Definitions. 
Sec. 102. Franchise relationship; termination and nonrenewal. 
Sec. 103. Trial franchises and interim franchises; nonrenewaL 
Sec. 104. Notification of termination or nonrenewal. 
Sec. 105. Enforcement. 
Sec. 106. Relationship of this title to State law. 
TITLE II--OCTANE DISCLOSURE 
Sec. 201. Definitions. 
Sec. 202. Octane testing and disclosure requirements. 
Sec. 203. Administration and enforcement. 
Sec. 204. Relationship of this title to State law. 
Sec. 205. Effective dates. 
TITLE III—STUDY OF SUBSIDIZATION OF MOTOR FUEL MARKETING 
Sec. 301. Study of subsidization of motor fuel marketing. 
TITLE 
I—FRANCHISE 
PROTECTION 
DEFINITIONS 
15 use 2801. 
SEC. 101. As used in this title: 
(1) (A) The term "franchise" means any contract— 
(i) between a refiner and a distributor, 
(ii) between a refiner and a retailer, 
(iii) between a distributor and another distributor, or 
(iv) between a distributor and a retailer, 
under which a refiner or distributor (as the case may be) authorizes 
or permits a retailer or distributor to use, in connection with the sale, 
consignment, or distribution of motor fuel, a trademark which is 
owned or controlled by such refiner or by a refiner which supplies 
motor fuel to the distributor which authorizes or permits such use. 
(B) The term "franchise" includes— 
(i) any contract under which a retailer or distributor (as the 
case may be) is authorized or permitted to occupy leased market-
ing premises, which premises are to be employed in connection 
with the sale, consignment, or distribution of motor fuel under a 
trademark which is owned or controlled by such refiner or by a 
refiner which supplies motor fuel to the distributor which author-
izes or permits such occupancy; 
PUBLIC LAW 95-297—JUNE 19, 1978 
92 STAT. 323 
(ii) any contract pertaining to the supply of motor fuel which 
is to be sold, consigned or distributed— 
(I) under a trademark owned or controlled by a refiner; or 
(II) under a contract which has existed continuously since 
May 15, 1973, and pursuant to which, on May 15,1973, motor 
fuel was sold, consigned or distributed under a trademark 
owned or controlled on such date by a refiner; and 
(iii) the unexpired portion of any franchise, as defined by the 
preceding provisions of this paragraph, which is transferred or 
assigned as authorized by the provisions of such franchise or by 
any applicable provision of State law which permits such transfer 
or assignment without regard to any provision of the franchise. 
(2) The term "franchise relationship" means the respective motor 
fuel marketing or distribution obligations and responsibilities of a 
franchisor and a francliisee which result from the marketing of motor 
fuel under a franchise. 
(3) The term "franchisor'' means a refiner or distributor (as the 
case may be) who authorizes or permits, under a franchise, a retailer 
or distributor to use a trademark in connection with the sale, consign-
ment, or distribution of motor fuel. 
(4) The term "franchisee" means a retailer or distributor (as the 
case may be) AVIIO is authorized or permitted, under a franchise, to 
use a trademark in connection with the sale, consignment, or distribu-
tion of motor fuel. 
(5) The term "refiner" means any person engaged in the refining 
of crude oil to produce motor fuel, and includes any affiliate of such 
person. 
(6) The term "distributor" means any person, including any affiliate 
of such person, who— 
(A) purchases motor fuel for sale, consignment, or distribution 
to another; or 
(B) receives motor fuel on consignment for consignment or 
distribution to his own motor fuel accounts or to accounts of his 
supplier, but shall not include a person who is an employee of, 
or merely serves as a common carrier providing transportation 
service for, such supplier. 
(7) The term "retailer" means any person who purchases motor 
fuel for sale to the general public for ultimate consumption. 
(8) The term "marketing premises" means, in the case of any 
franchise, premises which, under such franchise, are to be employed 
by the franchisee in connection with the sale, consignment, or distri-
bution of motor fuel. 
(9) The term "leased marketing premises" means marketing prem-
ises owned, leased, or in any way controlled by a franchisor and which 
the franchisee is authorized or permitted, under the franchise, to 
employ in connection with the sale, consignment, or distribution of 
motor fuel. 
(10) The term "contract" means any oral or written agreement. 
For supply purposes, delivery levels during the same month of the 
previous year shall be prima facie evidence of an agreement to deliver 
such levels. 
(11) The term "trademark" means any trademark, trade name, 
service mark, or other identifying symbol or name. 
(12) The term "motor fuel" means gasoline and diesel fuel of a 
type distributed for use as a fuel in self-propelled vehicles designed 
primarily for use on public streets, roads, and highways. 
•'-J i i 
92 STAT. 324 
PUBLIC LAW 95-297—JUNE 19, 1978 
(13) The term "failure" does not include— 
(A) any failure which is only technical or unimportant to the 
franchise relationship; or 
(B) any failure for a cause beyond the reasonable control of 
the franchisee. 
(14) The terms "fail to renew" and "nonrenewal'' mean, with respect 
to any franchise relationship, a failure to reinstate, continue, or extend 
the franchise relationship— 
(A) at the conclusion of the term, or on the expiration date, 
stated in the relevant franchise; 
(B) at any time, in the case of the relevant franchise which 
does not state a term of duration or an expiration date; or 
(C) following a termination (on or after the date of enact-
ment of this Act) of the relevant franchise which was entered into 
prior to such date of enactment and has not been renewed after 
such date. 
(15) The term "affiliate" means any person who (other than by 
means of a franchise) controls, is controlled by, or is under common 
control with, any other person, 
(16) The term "relevant geographic market area" includes a State 
or a standard metropolitan statistical area as periodically established 
by the Office of Management and Budget. 
(17) The term "termination" includes cancellation. 
(18) The term "commerce" means any trade, traffic, transportation, 
exchange, or other commerce— 
(A) between any State and any place outside of such State; 
or 
(B) which affects any trade, transportation, exchange, or other 
commerce described in subparagraph (A). 
(19) The term "State" means any State of the United States, the 
District of Columbia, the Commonwealth of Puerto Rico, the Virgin 
Islands, American Samoa, Guam, and any other commonwealth, ter-
ritory, or possession of the United States. 
FRANCHISE RELATIONSHIP; TERMINATION AND NONRENEWAL 
15 DSC 2802. 
SEC. 102. (a) Except as provided in subsection (b) and section 103, 
no franchisor engaged in the sale, consignment, or distribution of 
motor fuel in commerce may— 
(1) terminate any franchise (entered into or renewed on or 
after the date of enactment of this Act) prior to the conclusion of 
the term, or the expiration date, stated in the franchise; or 
(2) fail to renew any franchise relationship (without regard to 
the date on which the relevant fianchise was entered into or 
renewed). 
(b) (1) Any franchisor may terminate any franchise (entered into 
or renewed on or after the date of enactment of this Act) or may fail 
to renew any franchise relationship, if— 
(A) the notification rec^uirements of section 104 are met; and 
(B) such termination is based upon a ground described in 
paragraph (2) or such nonrenewal is based upon a ground 
described in paragraph (2) or (3). 
(2) For purposes of this subsection, the following are grounds for 
termination of a franchise or nonrenewal of a franchise relationship: 
(A) A failure by the franchisee to comply with any provision 
of the franchise, which provision is both reasonable and of 
PUBLIC LAW 95-297—JUNE 19, 1978 
92 STAT. 325 
material significance to the franchise relationship, if the 
franchisor first acquired actual or constructive knowledge of such 
failure— 
(i) not more than 120 days prior to the date on which 
notification of termination or nonrenewal is given, if notifica-
tion is given pursuant to section 104 (a); or 
(ii) not more than 60 days prior to the date on which 
notification of termination or nonrenewal is given, if less than 
90 days notification is given pursuant to section 104(b) (1). 
(B) A failure by the franchisee to exert good faith efforts to 
carry out the provisions of the franchise, if— 
(i) the franchisee was apprised by the franchisor in writing 
of such failure and was afforded a reasonable opportunity to 
exert good faith efforts to carry out sucli provisions; and 
(ii) such failure thereafter continued within the period 
which began not more than 180 days before the date notifica-
tion of termination or nonrenewal was given pursuant to 
section 104. 
(C) The occurrence of an event which is relevant to the fran-
chise relationship and as a result of which termination of the 
franchise or nonrenewal of the franchise relationship is reason-
able, if such event occure during the period the franchise is in 
effect and the franchisor first acquired actual or constructive 
knowledge of such occurrence— 
(i) not more than 120 days prior to the date on which 
notification of termination or nonrenewal is given, if noti-
fication is given pursuant to section 104(a) ; or 
(ii) not more than 60 days piior to the date on which noti-
fication of termination or nonrenewal is given, if less than 
90 days notification is given pursuant to section 104(b) (1). 
(D) An agreement, in writing, between the franchisor and the 
franchisee to terminate the franchise or not to renew the franchise 
^ 
relationship, if— 
(i) such agreement is entered into not more than 180 days 
prior to the date of such termination or, in the case of non-
renewal, not more than 180 days prior to the conclusion of 
the term, or the expiration date, stated in the franchise; 
(ii) the franchisee is promptly provided wdth a copy of 
such agreement,, together with the summary statement 
described in section 104(d) ; and 
(iii) within 7 days after the date on which the franchisee 
is provided a copy of such agreement, the franchisee has not 
posted by certified mail a written notice to the franchisor 
repudiating such agreement. 
(E) In the case of any franchise entered into prioi- to the date 
of the enactment of this Act and in the case of any franchise 
entered into or renewed on or after such date (the tenn of which 
is 3 years or longer, or with respect to which the franchisee was 
offered a term of 3 years or longer), a determination made by the 
franchisor in good faith and in the normal course of business to 
withdraw from the marketing of motor fuel through retail outlets 
in the relevant geographic market area in which the marketing 
premises are located, if— 
(i) such determination— 
(I) was made after the date such franchise was 
entered into or renewed, and 
92 STAT. 326 
PUBLIC LAW 95-297—JUNE 19, 1978 
(II) was based upon the occurrence of changes in 
relevant facts and circumstances after such date; 
(ii) the termination or nonrenewal is not for the purpose 
of converting the premises, which are the subject of the fran-
chise, to operation by employees or agents of the franchisor 
for such franchisor's own account; and 
(iii) in the case of leased marketing premises— 
(I) the franchisor, during the 180-day period after 
notification was given pursuant to section 104, either 
made a bona fide offer to sell, transfer, or assign to the 
franchisee such franchisor's interests in such premises, or, 
if applicable, offered the franchisee a right of first refusal 
of at least 45 days duration of an offer, made by another, 
to purchase such franchisor's interest in such premises; or 
(II) in the case of the sale, transfer, or assignment to 
another person of the franchisor's interest in such prem-
ises in connection wnth the sale, transfer, or assignment 
to such other per^n of the franchisor's interest in one or 
more other marketing premises, if such other person 
offers, in good faith, a franchise to the franchisee on 
terms and conditions which are not discriminatory to the 
franchisee as compared to franchises then currently being 
offered by such other person or franchises then in effect 
and with respect to w^hich such other person is the 
franchisor. 
Grounds for 
(3) For purposes of this subsection, the following are grounds for 
nonrenewal. 
nonrenewal of a franchise relationship: 
(A) The failure of the franchisor and the franchisee to agree 
to changes or additions to the provisions of the franchise, if— 
(i) such changes or additions are the result of determina-
tions made by the franchisor in good faith and in the normal 
course of business; and 
(ii) such failure is not the result of the franchisor's insist-
ence upon such changes or additions for the purpose of pre-
venting the renewal of the franchise relationship. 
(B) The receipt of numerous bona fide customer complaints by 
the franchisor concerning the franchisee's operation of the 
marketing premises, if— 
(i) the franchisee was promptly apprised of the existence 
and nature of such complaints following receipt of such com-
plaints by the franchisor; and 
(ii) if such complaints related to the condition of such 
premises or to the conduct of any employee of such franchisee, 
the franchisee did not promptly take action to cure or correct 
the basis of such complaints. 
(C) A failure by the franchisee to operate the marketing prem-
ises in a clean, safe, and healthful manner, if the franchisee failed 
to do so on two or more previous occasions and the franchisor 
notified the franchisee of such failures. 
(D) In the case of any franchise entered into prior to the date 
of the enactment of this Act (the unexpired term of which, on 
such date of enactment, is 3 years or longer) and, in the case of 
any franchise entered into or renewed on or after such date (the 
term of which was 3 years or longer, or with respect to which the 
franchisee was offered a term of 3 years or longer), a determina-
PUBLIC LAW 95-297—JUNE 19, 1978 
92 STAT. 327 
tion made by the franchisor in good faith and in the normal 
course of business, if— 
(i) such determination is— 
(I) to convert the leased marketing premises to a use 
other than the sale or distribution of motor fuel, 
(II) to materially alter, add to, or replace such 
premises, 
(III) to sell such premises, or 
(IV) that renewal of the franchise relationship is 
likely to be uneconomical to the franchisor despite any 
reasonable changes or reasonable additions to the pro-
visions of the franchise which may be acceptable to the 
franchisee; 
(ii) with respect to a determination referred to in sub-
clause (II) or (lY), such determination is not made for the 
purpose of converting the leased marketing premises to opera-
tion by employees or agents of the franchisor for such 
franchisor's own account; and 
(iii) in the case of leased marketing premises such fran-
chisor, during the 90-day period after notification was given 
pursuant to section 104, either— 
(I) made a bona fide offer to sell, transfer, or assign 
to the franchisee such franchisor's interests in such prem-
ises; or 
(II) if applicable, offered the franchisee a right of 
first refusal of at least 45-days duration of an offer, 
made by another, to purchase such franchisor's interest 
in such premises. 
(c) As used in subsection (b) (2) (C), the term "an event which is Definition, 
relevant to the franchise relationship and as a result of which ter-
mination of the franchise or nonrenewal of the franchise relationship 
is T'easonable" includes events such as— 
(1) fraud or criminal misconduct by the franchisee relevant 
to the operation of the marketing premises; 
(2) declaration of bankruptcy or judicial determination of 
insolvency of the franchisee; 
('8) continuing severe physical or mental disability of the fran-
chisee of at least 3 months duration which renders the franchisee 
unable to provide for the continued proper operation of the 
marketing premises; 
(4) loss of the franchisor's right to grant possession of the 
leased marketing premises through expiration of an underlying 
lease, if the franchisee was notified in writing, prior to the com-
mencement of the term of the then existinsi- franchise— 
(A) of the duration of the underlying lease, and 
(B) of the fact that such underlying lease might expire and 
not be renewed during the term of such franchise (in the case 
of termination) or at the end of such term (in the case of 
nonrenewal); 
(5) condemnation or other taking, in whole or in part, of the 
marketing premises pursuant to the power- of eminent domain; 
(6) loss of the franchisor's right to grant the right to use the 
trademark which is the subject of the franchise, unless such loss 
was due to trademark abuse, violation of Federal or State law, or 
other fault or nesfligence of the franchisor, which such abuse, vio-
92 STAT. 328 
PUBLIC LAW 95-297—JUNE 19, 1978 
lation, or other fault or negligence is related to action taken in 
bad faith by the franchisor; 
(7) destruction (other than by the franchisor) of all or a sub-
stantial part of the marketing premises; 
(8) failure by the franchisee to pay to the franchisor in a timely 
manner when due all sums to which the franchisor is legally 
entitled; 
(9) failure by the franchisee to operate the marketing premises 
for— 
(A) 7 consecutive days, or 
(B) such lesser period which under the facts and circum-
stances constitutes an unreasonable period of time; 
(10) willful adulteration, mislabeling or misbranding of motor 
fuels or other trademark violations by the franchisee; 
(11) knowing failure of the franchisee to comply with Federal, 
State, or local laws or regulations relevant to the operation of the 
marketing premises; and 
(12) conviction of the franchisee of any felony involving moral 
turpitude. 
(d) In the case of any termination of a franchise (entered into or 
renewed on or after the date of enactment of this Act), or in the case 
of any nonrenewal of a franchise relationship (without regard to the 
date on which such franchise relationship was entered into or 
renewed) — 
(1) if such termination or nonrenewal is based upon an event 
described in subsection (c) (5), the franchisor shall fairly appor-
tion between the franchisor and the franchisee compensation, if 
any, received by the franchisor based upon any loss of business 
opportunity or good will; and 
(2) if such tennination or nonrenewal is based upon an event 
described in subsection (c) (7) and the leased marketing premises 
are subsequently rebuilt or replaced by the franchisor and 
operated under a franchise, the franchisor shall, within a reason-
able period of time, grant to the franchisee a right of first refusal 
of the franchise under which such premises are to be operated. 
TRIAL FRANCHISES AND INTERIM FRANCHISES; NONRENEWAL 
15 use 2803. 
SEC. 103. (a) The provisions of section 102 shall not apply to the 
nonrenewal of any franchise relationship— 
(1) under a trial franchise; or 
(2) under an interim franchise. 
Definitions. 
(b) For purposes of this section— 
(1) The term "trial franchise" means any franchise— 
(A) which is entered into on or after the date of enact-
ment of this Act; 
(B) the franchisee of which has not previously been a 
party to a franchise with the franchisor; 
(C) the initial term of which is for a period of not more 
than 1 year; and 
(D) which is in writing and states clearly and conspicu-
ously— 
(i) that the franchise is a trial franchise; 
(ii) the duration of the initial term of the franchise; 
(iii) that the franchisor may fail to renew the fran-
chise relationship at the conclusion of the initial term 
stated in the franchise by notifying the franchisee, in 
PUBLIC LAW 95-297—JUNE 19, 1978 
92 STAT. 329 
accordance with the provisions of section 104, of the 
franchisor's intention not to renew the franchise rela-
tionship; and 
(iv) that the provisions of section 102, limiting the 
right of a franchisor to fail to renew a franchise relation-
ship, are not applicable to such trial franchise. 
(2) The term "trial franchise" does not include any unexpired 
period of any term of any franchise (other than a trial franchise, 
as defined by paragraph (1)) which was transferred or assigned 
by a franchisee to the extent authorized by the provisions of the 
franchise or any applicable provision of State law which permits 
such transfer or assignment, without regard to any provision of 
the franchise. 
(3) The term "interim franchise" means any franchise— 
(A) which is entered into on or after the date of the enact-
ment of this Act; 
(B) the term of which, when combined with the terms of 
all prior interim franchises between the franchisor and the 
franchisee, does not exceed 3 years; 
(C) the effective date of which occurs immediately a,fter 
the expiration of a prior franchise, applicable to the market-
ing premises, which was not renewed if such nonrenewal— 
(i) was based upon a determination described in sec-
tion 102(b) (2) (E), and 
(ii) the requirements of section 102(b)(2)(E) were 
satisfied; and 
(D) 
which is in writing and 
states clearly and 
' 
conspicuously— 
^i) that the franchise is an interim franchise; 
(ii) the duration of the franchise; and 
(iii) that the franchisor may fail to renew the fran-
chise at the conclusion of the term stated in the franchise 
based upon a determination made by the franchisor in 
good faith and in the normal course of business to with-
draw from the marketing of motor fuel through retail 
outlets in the relevant geographic market area m which 
the marketing premises are located if the requirements of 
action 102(b) (2) (E) (ii) and (iii) are satisfied, 
(c) If the notification requirements of section 104 are met, any 
franchisor may fail to renew any franchise relationship— 
(1) under any trial franchise, at the conclusion of the initial 
term of such trial franchise; and 
(2) under any interim franchise, at the conclusion of the term 
of such interim franchise, if— 
(A) such nonrenewal is based upon a determination 
described in section 102(b) (2) (E); and 
(B) the requirements of section 102(b)(2)(E) (ii) and 
(iii) are satisfied. 
, 
NOTIFICATION OF TERMINATION OR NONRENEWAL 
SEC. 104. (a) Prior to termination of any franchise or nonrenewal 15 USC 2804, 
of any franchise relationship, the franchisor shall furnish notification 
of such termination or such nonrenewal to the franchisee who is a 
party to such franchise or such franchise relationship— 
(1) in the manner described in subsection (c) ; and 
92 STAT. 330 
PUBLIC LAW 95-297—JUNE 19, 1978 
Publication in 
Federal Register. 
(2) except as provided in subsection (b), not less than 90 days 
prior to the date on which such termination or nonrenewal takes 
effect. 
(b) (1) In circumstances in which it would not be reasonable for 
the franchisor to furnish notification, not less than 90 days prior to 
the date on which termination or nonrenewal takes effect, as required 
by subsection (a) (2)— 
(A) such franchisor shall furnish notification to the franchisee 
affected thereby on the earliest date on which furnishing of such 
notification is reasonably practicable; and 
(B) in the case of leased marketing premises, such franchisor— 
(i) may not establish a new franchise relationship with 
respect to such premises before the expiration of the 30-day 
period which begins— 
(I) on the date notification was posted or personally 
delivered, or 
(II) if later, on the date on which such termination 
or nonrenewal takes effect; and 
(ii) may, if permitted to do so by the franchise agree-
ment, repossess such premises and, in circumstances under 
which it would be reasonable to do so, operate such premises 
through employees or agents. 
(2) In the case of any termination of any franchise or any non-
renewal of any franchise relationship pursuant to the provisions of 
section 102(b) (2) (E) or section 103(c) (2), the franchisor shall— 
(A) furnish notification to the franchisee not less than 180 days 
prior to the date on which such termination or nonrenewal takes 
effect; and 
(B) promptly provide a copy of such notification, together 
with a plan describing the schedule and conditions under which 
the franchisor will withdraw from the marketing of motor fuel 
through retail outlets in the relevant geographic area, to the 
Governor of each State which contains a portion of such area. 
(c) Notification under this section— 
(1) shall be in writing; 
(2) shall be posted by certified mail or personally delivered to 
the franchisee; and 
(3) shall contain— 
(A) a statement of intention to terminate the franchise 
or not to renew the franchise relationship, together with 
the reasons therefor; 
(B) the date on which such termination or nonrenewal 
takes effect; and 
(C) the summary statement prepared under subsection (d). 
(d) (1) Not later than 30 days after the date of enactment of this 
Act, the Secretary of Energy shall prepare and publish in the Federal 
Register a simple and concise summary of the provisions of this title, 
including a statement of the respective responsibilities of, and the 
remedies and relief available to, any franchisor and franchisee under 
this title. 
(2) In the case of summaries required to be furnished under the 
provisions of section 102(b) (2) (D) or subsection (c) (3) (C) of this 
section before the date of publication of such summary in the Federal 
Register, such summary may be furnished not later than 5 days after 
it is so published rather than at the time required under such provisions. 
PUBLIC LAW 95-297—JUNE 19, 1978 
92 STAT. 331 
ENFORCEMENT 
15 use 2805. 
SEC. 105. (a) If a franchisor fails to comply with the requirements 
of section 102 or 103, the franchisee may maintain a civil action against 
such franchisor. Such action may be brought, without regard to the Jurisdiction, 
amount in controversy, in the district court of the United States in 
any judicial district in which the principal place of business of such 
franchisor is located or in which such franchisee is doing business, 
except that no such action may be maintained unless commenced within 
1 year after the later of— 
(1) the date of termination of the franchise or nonrenewal of 
the franchise relationship; or 
(2) the date the franchisor fails to comply with the require-
ments of section 102 or 103. 
(b) (1) In any action under subsection (a), the court shall grant 
such equitable relief as the court determines is necessary to remedy the 
effects of any failure to comply with the requirements of section 102 or 
103, including declaratory judgment, mandatory or prohibitive injunc-
tive relief, and interim equitable relief. 
(2) Except as provided in paragraph (3), in any action under sub- Preliminary 
section (a), the court shall grant a preliminary injunction if— 
injunction. 
(A) the franchisee shows— 
(i) the franchise of which he is a party has been terminated 
or the franchise relationship of which he is a party has not 
been renewed, and 
(ii) there exist sufficiently serious questions going to the 
merits to make such questions a fair ground for litigation; 
and 
(B) the court determines that, on balance, the hardships 
imposed upon the franchisor by the issuance of such preliminary 
injunctive relief will be less than the hardship which would be 
imposed upon such franchisee if such preliminary injunctive relief 
were not granted. 
(3) Nothing in this subsection prevents any court from requiring the 
franchisee in any action under subsection (a) to post a bond, in an 
amount established by the court, prior to the issuance or continuation 
of any equitable relief. 
(4) In any action under subsection (a), the court need not exercise 
its equity powers to compel continuation or renewal of the franchise 
relationship if such action was commenced— 
(A) more than 90 days after the date on which notification 
pursuant to section 104(a) was posted or personally delivered to 
the franchisee; 
(B) more than 180 days after the date on which notification 
pursuant to section 104(b) (2) was posted or personally delivered 
to the franchisee; or 
(C) more than 30 days after the date on which the termination 
of such franchise or the nonrenewal of such franchise relationship 
takes effect if less than 90 days notification was provided pursuant 
to section 104(b)(1). 
(c) In any action under subsection (a), the franchisee shall have 
the burden of proving the termination of the franchise or the non-
renewal of the franchise relationship. The franchisor shall bear the 
burden of going forward with evidence to establish as an affirmative 
defense that such termination or nonrenewal was permitted under 
section 102(b) or 103, and, if applicable, that such franchisor complied 
with the requirements of section 102 (d). 
39-194 O-80-pt. 1 
25 : QL3 
92 STAT. 332 
PUBLIC LAW 95-297—JUNE 19, 1978 
Damages. 
(d) (1) If the franchisee prevails in any action under subsection 
(a), such franchisee shall be entitled— 
(A) consistent with the Federal Rules of Civil Procedure, to 
actual damages; 
•' ' 
(B) in the case of any such action which is based upon conduct 
of the franchisor which was in willful disregard of the require-
ments of section 102 or 103, or the rights of the franchisee there-
under, to exemplary damages, where appropriate; and 
(C) to reasonable attorney and expert witness fees to be paid 
by the f 
ranchisoi*, unless the court determines that only nominal 
damages are to be awarded to such franchisee, in which case the 
court, in its discretion, need not direct that such fees be paid by 
the franchisor. 
(2) The question of whether to award exemplary damages and the 
amount of any such award shall be determined by the court and not 
by a jury. 
(3) In any action under subsection (a), the court may, in its discre-
tion, direct that reasonable attorney and expert witness fees be paid 
by the franchisee if the court finds that such action is frivolous. 
(e) (1) In any action under subsection (a) with respect to a failure 
of a franchisor to renew a franchise relationship in compliance with 
the requirements of section 102, the court may not compel a continua-
tion or renewal of the franchise relationship if the franchisor demon-
strates to the satisfaction of the court that— 
(A) the basis for such nonrenewal is a determination made by 
the franchisor in good faith and in the normal course of business— 
(i) to convert the leased marketing premises to a use other 
than the sale or distribution of motor fuel, 
(ii) to materially alter, add to, or replace such premises, 
(iii) to sell such premises, 
(iv) to withdraw from the marketing of motor fuel 
through retail outlets in the relevant geographic market area 
in which the marketing premises are located, or 
(v) that renewal of the franchise relationship is likely to 
'be uneconomical to the franchisor despite any reasonable 
' 
changes or reasonable additions to the provisions of the fran-
chise which may be acceptable to the franchisee; and 
(B) the requirements of section 104 have been complied with. 
(2) The provisions of paragraph (1) shall not affect any right of 
any franchisee to recover actual damages and reasonable attorney and 
expert witness fees under subsection (d) if such nonrenewal is pro-
hibited by section 102. 
RELATIONSHIP OF THIS TITLE TO STATE LAW 
15 use 2806. 
SEC. 106. (a) To the extent that any provision of this title applies 
to the termination (or the furnishing of notification with respect 
thereto) of any franchise, or to the nonrenewal (or the furnishing of 
notification with respect thereto) of any franchise relationship, no 
State or any political subdivision thereof may adopt, enforce, or con-
tinue in effect any provision of any law or regulation (including any 
remedy or penalty applicable to any violation thereof) with respect to 
termination (or the furnishing of notification with respect thereto) of 
any such franchise or to the nonrenewal (or the furnishing of notifica-
': 
tion with respect thereto) of any such franchise relationship unless 
such provision of such law or regulation is the same as the applicable 
provision of this title. 
PUBLIC LAW 95-297—JUNE 19, 1978 
92 STAT. 333 
(b) Nothing in this title authorizes any transfer or assignment of 
any franchise or prohibits any transfer or assignment of any fran-
chise as authorized by the provisions of such franchise or by any appli-
cable provision of State law which permits such transfer or assignment 
without regard to any provision of the franchise. 
TITLE II—OCTANE DISCLOSURE 
DEriNITIONS 
SEC. 201. As used in this title: 
15 USC 2821. 
(1) The term "octane rating" means the rating of the anti-
knock characteristics of a grade or type of automotive gasoline 
as determined by dividing by 2 the sum of the research octane 
number plus the motor octane number, unless another procedure is 
prescribed under section 203 (c) (3), in which case such term means 
the rating of such characteristics as determined under the pro-
cedure so prescribed. 
(2) The terms "research octane number" and "motor octane 
number" have the meanings given such terms in the specifications 
of the American Society for Testing and Materials (ASTM) 
entitled "Standard Specifications for Automotive Gasoline" des-
ignated D 439 (as in effect on the date of the enactment of this 
Act) and, with respect to any grade or type of automotive gaso-
line, are determined in accordance with test methods set forth in 
ASTM standard test methods designated D 2699 and D 2700 
(as in effect on such date). 
' 
''' 
(3) The term "knock" means the combustion of a fuel spon-
taneously in localized areas of a cylinder of a spark-ignition 
engine, instead of the combustion of such fuel progressing from 
the spark. 
(4) The term "gasoline retailer" means any person who 
markets automotive gasoline to the general public for ultimate 
consumption. 
(5) The term "refiner" means any person engaged in— 
(A) the refining of crude oil to produce automotive gaso-
line; or 
(B) the importation of automotive gasoline. 
(6) The term "automotive gasoline" means gasoline of a type 
distributed for use as a fuel in any motor vehicle. 
(7) The term "motor vehicle" means any self-propelled four-
wheeled vehicle, of less than 6,000 pounds gross vehicle weight, 
which is designed primarily for use on public streets, roads, and 
highways. 
(8) The term "new motor vehicle" means any motor vehicle 
the equitable or legal title to which has not previously been trans-
ferred to an ultimate purchaser. 
(9) The term "ultimate purchaser" means, with respect to any 
item, the first person who purchases such item for purposes other 
than resale. 
(10) The term "manufacturer" means any person who imports, 
manufactures, or assembles motor vehicles for sale. 
(11) The term "octane requirement" means, with respect to 
automotive gasoline for use in a motor vehicle or a class thereof, 
imported, manufactured, or assembled by a manufacturer, the 
minimum octane rating of such automotive gasoline which such 
.L 
manufacturer recommends for the efficient operation of siich 
l a j 
92 STAT. 334 
PUBLIC LAW 95-297—JUNE 19, 1978 
motor vehicle, or a substantial portion of such class, without 
knocking. 
(12) The teiin "model year" means a manufacturer's annual 
production period (as determined by the Federal Trade Commis-
sion) for motor vehicles or a class of motor vehicles. If a manu-
facturer has no annual production period, the term "model year" 
^ 
means the calendar year. 
(13) The term "commerce" means any trade, traffic, transporta-
tion, exchange, or other commerce— 
(A) between any State and any place outside of such 
State; or 
(B) which affects any trade, transportation, exchange, or 
other commerce described in subparagraph (A). 
(14) Tlie term "State" means any State of the United States, 
the District of Columbia, the Commonwealth of Puerto Rico, the 
Virgin Islands, American Samoa, Guam, and any other common-
wealth, territory, or possession of the United States. 
(15) the term "person", for purposes of applying any provi-
sion of the Federal Trade Commission Act with respect to any 
provision of this title, includes a partnership and a corporation. 
(16) The term "distributor" means any person who receives 
gasoline and distributes such gasoline to another person other 
than the ultimate purchaser. 
OCTANE TESTING AND DISCLOSURE REQUIREMENTS 
15 use 2822. 
SEC. 202. (a) Each refiner who distributes automotive gasoline in 
commerce shall— 
(1) determine the octane rating of any such gasoline; and 
(2) if such refiner distributes such gasoline to any person other 
than the ultimate purchaser, certify, consistent with the deter-
mination made under paragraph (1), the octane rating of such 
gasoline. 
(b) Each distributor who receives automotive gasoline, the octane 
rating of which is certified to him under this section, and distributes 
such gasoline in commerce to another person other than the ultimate 
purchaser shall certify to such other person the octane rating of such 
gasoline consistent with— 
(1) the octane rating of such gasoline certified to such 
distributor; or 
(2) if such distributor elects (at such time and in such manner 
as the Federal Trade Commission may, by rule, prescribe), the 
octane rating of such gasoline determined by such distributor. 
(c) Each gasoline retailer shall display in a clear and conspicuous 
manner, at the point of sale to ultimate purchasers of automotive gaso-
line, the octane rating of such gasoline, which octane rating shall be 
consistent with— 
(1) the octane rating of such gasoline certified to such retailer 
under subsection (a) (2) or (b); 
(2) if such gasoline retailer elects (at such time and in such 
,, , manner as the Federal Trade Commission may, by rule, prescribe), 
the octane rating of such gasoline determined by such retailer for 
,' such gasoline; or 
(3) if such gasoline retailer is a refiner, the octane rating of 
such gasoline determined under subsection (a) (1). 
Rules. 
(d) The Federal Trade Commission shall, by rule, prescribe require-
ments, applicable to any manufacturer of new motor vehicles, with 
PUBLIC LAW 95-297—JUNE 19, 1978 
92 STAT. 335 
respect to the display on each such motor vehicle (or representation in 
connection with the sale of each such motor vehicle) of the octane 
requirement of such motor vehicle. 
(e) No person who distributes automotive gasoline in commerce may 
make any representation respecting the antiknock characteristics of 
such gasoline unless such representation fairly discloses the octane 
rating of such gasoline consistent with such gasoline's octane rating as 
certified to or determined by such person under the foregoing provi-
sions of this section. 
(f) For purposes of this section, the octane rating of any automotive 
gasoline shall be considered to be certified, displayed, or represented by 
any person consistent with the rating certified to, or determined by, 
such person— 
(1) in the case of automotive gasoline which consists of a blend 
of two or more quantities of automotive gasoline of differing 
octane ratings, only if the rating certified, displayed, or repre-
sented by such person is the average of the octane ratings of such 
quantities, weighted by volume; or 
(2) in the case of gasoline which does not consist of such a 
blend, only if the octane rating such person certifies, displays, or 
represents is the same as the octane rating of such gasoline certi-
fied to, or determined by, such person. 
(g) The foregoing provisions of this section shall not apply— 
(1) to any representation (by display at the point of sale or by 
other means) of any characteristics of any automotive gasoline 
other than its octane rating; or 
(2) to the identification of automotive gasoline at the point of 
sale (or elsewhere) by the trademark, trade name, or other iden-
tifying symbol or mark used in connection with the sale of such 
gasoline. 
(h) Any display or representation, with respect to the octane 
requirement of any motor vehicle, required to be made under any rule 
prescribed under subsection (d) shall not create an express or implied 
warranty under State or Federal law that any automotive gasoline the 
octane rating of which equals or exceeds such octane requirement— 
(1) may be used as a fuel in all motor vehicles of the same class 
as that motor vehicle without knocking; or 
(2) may be used as a fuel in such motor vehicle under all 
operating conditions without knocking. 
ADMINISTRATION^ AND ENFORCEMENT 
SEC. 203. (a) The Federal Trade Commission shall have procedural, 
investigative, and enforcement powers, including the power to issue 
procedural rules in enforcing compliance with the requirements of 
this title and rules prescribed pursuant to the requirements of this 
title, to further define terms used in this title, and to require the filing 
of reports, the production of documents, and the appearance of wit-
nesses, as though the applicable terms and conditions of the Federal 
Trade Commission Act were part of this title. 
(b)(1) The Environmental Protection Agency shall— 
(A) conduct field testing of the octane rating of automotive 
gasoline, comparing the tested octane rating of gasoline at retail 
outlets with the octane rating posted at those outlets ; 
(B) certify the results of such tests and comparisons to the 
Federal Trade Commission; and 
Rules. 
Reports. 
15 use 2823. 
15 use 58. 
Tests. 
92 STAT. 336 
PUBLIC LAW 95-297—JUNE 19, 1978 
Interagency 
agreements. 
Rules, 
(C) notify the Federal Trade Commission of any failure to 
post the octane rating discovered in the course of such field testing. 
(2) The Federal Trade Commission may enter into interagency 
agreements with the Environmental Protection Agency and such other 
agencies of the United States as the Commission determines appropri-
ate for the purpose of assuring enforcement of the provisions of this 
title in a manner which is consistent with— 
(A) minimizing the cost of field inspection and related com-
pliance activities; and 
(B) reducing duplication of similar or related field compliance 
activities performed by agencies of the United States. 
(c) (1) Not later than 6 months after the date of the enactment of 
this Act, the Federal Trade Commission shall, by rule, prescribe and 
make effective— 
(A) a uniform method by which a person may certify to another 
the octane rating of automotive gasoline; and 
(B) a uniform method of displaying the octane rating of auto-
motive gasoline at the point of sale to ultimate purchasers. 
(2) Effective on and after the effective date of the rule prescribed 
under paragraph (1), any person— 
(A) shall be considered to satisfy the requirements of subsec-
tion (a) or (b) of section 202, as the case may be, only if such 
person complies with the requirements established pursuant to 
paragraph (1) (A) ; and 
(B) shall be considered to satisfy the requirements of section 
202(c) only if such person complies with the requirements estab-
lished pursuant to paragraph (1) (B). 
(3) The Federal Trade Commission may, by rule, prescribe pro-
cedures for determination of the octane rating of automotive gasoline 
which varies from that prescribed in section 201(1). In prescribing 
such rule, the Commission— 
(A) shall consider— 
(i) ease of administration and enforcement, and 
(ii) industry practices in the distribution and marketing 
of automotive gasoline; and 
(B) may permit adjustments in such octane rating to take into 
account the effects of altitude, temperature, and humidity. 
(4) The Federal Trade Commission may, by rule, prescribe and 
make effective a method of determining the octane rating of auto-
motive gasoline which consists of a blend of two or more quantities of 
automotive gasoline of different octane ratings if the Federal Trade 
Commission finds that the method prescribed more accurately reflects 
the octane rating of such blend than the weighted-average method set 
forth in section 202(f) (1). Effective on and after the effective date 
of such rule, any person shall be considered to satisfy the require-
ments of section 202(f) (1) only if such person utilizes the method 
prescribed in such rule (in lieu of the method set forth in section 
202(f)(1)). 
(d) (1) Except as provided in paragraph (2), rules under this title 
shall be prescribed in accordance with section 553 of title 5, United 
States Code, except that interested persons shall be afforded an oppor-
tunity to present written and oral data, views, and arguments with 
respect to any proposed rule. 
(2) Rules prescribed under subsection (c) (3) and section 202(d) 
shall be prescribed on the record after opportunity for an agency 
hearing. 
PUBLIC LAW 95-297—JUNE 19, 1978 
92 STAT. 337 
(3) Section 18 of the Federal Trade Commission Act (15 U.S.C. 
57a) shall not apply with respect to any rule prescribed under this title. 
(e) It shall be an unfair or deceptive act or practice in or affecting 
commerce (within the meaning of section 5(a)(1) of the Federal 
Trade Commission Act) for any person to violate subsection (a), (b), 15 USC 45. 
(c), or (e) of section 202, or a rule prescribed under subsection (d) of 
such section. For purposes of the Federal Trade Commission Act 15 USC 58. 
(including any remedy or penalty applicable to any violation thereof) 
such a violation shall be treated as a violation of a rule under such Act 
respecting unfair or deceptive acts or practices; except that for pur-
poses of section 5(m)(l)(A) of such Act, the term "or knowledge 15 USC 45. 
fairly implied on the basis of objective circumstances" shall not apply 
to any violation by any gasoline retailer of the requirements of section 
202 (c) or (e). 
RELATIONSHIP OF THIS TITLE TO STATE LAW 
SEC. 204. To the extent that any provision of this title applies to 15 USC 2824. 
any act or omission, no State or any political subdivision thereof may 
adopt, enforce, or continue in effect any provision of any law or regula-
tion (including any remedy or penalty applicable to any violation 
thereof) with respect to such act or omission, unless such provision of 
such law or regulation is the same as the applicable provision of this 
title. 
EFFECTIVE DATES 
SEC. 205. (a) Sections 202(a) (1) and 208(b) shall take effect on the 15 USC 2822 
first day of the first calendar month beginning more than 6 months °°*®-
after the date of the enactment of this Act. 
(b) Subsections (a) (2), (b), (c), and (e) of section 202 shall take 
effect on the first day of the first calendar month beginning more than 
9 months after such date of enactment. 
(c) Rules under section 202(d) may not take effect earlier than the 
beginning of the first motor vehicle model year which begins more than 
9 months after such date of enactment. 
TITLE III—STUDY OF SUBSIDIZATION OF MOTOR 
FUEL MARKETING 
SEC. 301. (a) The Secretary of Energy, in consultation with the 15 USC 2841. 
Chairman of the Federal Trade Commission and the Attorney General 
and other agencies as the Secretary deems appropriate, shall conduct 
a study of the extent to which producers, refinere, and other suppliers 
of motor fuel subsidize the sale of such motor fuel at retail or whole-
sale with profits obtained from other operations. 
(b) Such study shall examine— 
(1) the role of vertically integrated operations in facilitating 
subsidization of sales of motor fuel at wholesale or retail; 
(2) the extent to which such subsidization is predatory and 
presents a threat to competition; 
(3) the profitability of various segments of the petroleum 
industry; 
(4) the irnpact of prohibiting such subsidization on the com-
petitive viability of various segments of the petroleum industry, 
on prices of motor fuel to consumers and on the health and struc-
ture of the petroleum industry as a whole; and 
(5) such other matters as the Secretary considers appropriate. 
92 STAT. 338 
PUBLIC LAW 95-297—JUNE 19, 1978 
Notice. 
Report to 
Congress. 
Rules. 
Appropriation 
authorization. 
(c) In conducting the study required by this section, the Secretary 
shall give appropriate notice and afford interested persons an oppor-
tunity to present written and oral data, views and arguments con-
cerning such study. 
(d) (1) The Secretary shall report the results of the study required 
by this section, together with such recommendations for legislative 
action and such statistical evidence as he deems appropriate to the 
Congress on or before the expiration of the eighteenth month after 
the date of enactment of this section. 
(2) If the President determines that interim measures are necessary 
and appropriate to maintain the competitive viability of the marketing 
sector of the petroleum industry during Congressional consideration 
of the recommendations contained in the report submitted under para-
graph (1), he shall prescribe, by rule, in accordance with the pro-
cedures set forth in section 523(a) of the Energy Policy and 
Conservation Act (42 U.S.C. 6393) such interim measures. 
(3) No interim measure proposed by the President under this section 
may be submitted after January 1, 1980, and the effect of such meas-
ure if approved by the Congress under paragraph (4) may not extend 
beyond 18 months after such Congressional approval. 
(4) Such interim measure shall not take effect unless approved by 
both Houses of Congress as if it were a contingency plan under section 
552 of the Energy Policy and Conservation Act (42 U.S.C. 6422) : 
Provided, That the 60-day period referred to in such section shall be 
extended to 90 days for purposes of this section. 
(e) There are hereby authorized to be appropriated such sums as 
may be necessary to carry out the pix)visions of this section. 
Approved June 19, 1978. 
)? 
LEGISLATIVE HISTORY: 
HOUSE REPORT No. 95-161 (Comm. on Interstate and Foreign Commerce). 
SENATE REPORTS: No. 95-731, and No. 95-732 accompanying S. 743 (Comm. on 
Energy and Natural Resources). 
CONGRESSIONAL RECORD: 
Vol. 123 (1977): Apr. 5, considered and passed House. 
Vol. 124 (1978): May 5, 9, considered and passed Senate, amended, in lieu of 
S. 743. 
June 6, House agreed to Senate amendments.