2023 New York Laws › GBS - General Business › Article 11-B - Franchises for the Sale of Motor Fuels › 199-J - Dealer's Right to Deal With Suppliers Other Than His Distributor.

§  199-j.  Dealer's  right  to  deal  with  suppliers  other  than his
distributor. 1. Any provision of a franchise which requires a dealer  to
purchase  or  sell products of the distributor other than motor fuel, or
which prohibits a dealer from purchasing or  selling  such  products  of
persons or firms other than the distributor, shall be null and void. Any
person or firm who is a distributor, or an officer, agent or employee of
a distributor, who shall threaten, harass, coerce or attempt to coerce a
dealer for the purpose of compelling the dealer to purchase or sell such
products  of  the  distributor  or to refrain from purchasing or selling
such products of persons or firms other than the  distributor  shall  be
guilty  of a violation and shall be subject to a fine in an amount up to
five hundred dollars for each violation.
2. (a) Any provision of a franchise  which  prohibits  a  dealer  from
purchasing  or  selling  any of the alternative motor fuels set forth in
paragraph (b) of this subdivision from a person or firm other  than  the
distributor,  or  limits the quantity of such motor fuel to be purchased
from such other person or firm, or any provision of  a  franchise  which
directly  or  indirectly discourages a dealer from purchasing or selling
such alternative motor fuels from such other person or  firm,  shall  be
null  and  void as it pertains to that particular alternative motor fuel
if the distributor does not supply or offer to supply to the dealer such
alternative motor fuel. Nothing contained in  this  paragraph,  however,
shall  grant  to  any  dealer  any  rights, authority or obligation with
respect to the permissible uses of the  premises  or  facilities  owned,
leased  or  controlled  by  a  distributor  pursuant to the terms of the
franchise.
(b) For the purposes of this  section,  the  term  "alternative  motor
fuel"  shall  mean  any  of  the  following:  (i) a blend of eighty-five
percent ethanol and fifteen percent gasoline; (ii) a blend of  at  least
two  percent  methyl-ester,  commonly  referred  to as "bio-diesel", and
diesel motor fuel; (iii) motor  fuel  comprised  primarily  of  methane,
stored  in  either  a  gaseous  or liquid state and suitable for use and
consumption in the engine of a motor vehicle, commonly  referred  to  as
"compressed natural gas"; or (iv) hydrogen.
(c)  Any  person or firm who is a distributor, or an officer, agent or
employee of a distributor, who threatens, harasses, coerces or  attempts
to  coerce a dealer for the purpose of compelling such dealer to refrain
from purchasing or selling alternative motor fuel from a person or  firm
other than the distributor shall be guilty of a violation and be subject
to a fine in an amount up to one thousand dollars for each violation.
3.  Franchise  provisions. Any provision of a franchise with a refiner
which prohibits a dealer, who either directly or  through  an  affiliate
owns a service station including the tanks and pumps and who dedicates a
tank  for sale of unbranded motor fuel, or a distributor from purchasing
or selling unbranded motor fuel from a person or  firm  other  than  the
refiner  or  limits  the  quantity  of  such  unbranded motor fuel to be
purchased from another person or firm or any provision  of  a  franchise
which  directly  or  indirectly discourages a dealer or distributor from
purchasing or selling such unbranded motor fuels from another person  or
firm,  shall  be  null  and  void.  For purposes of this subdivision and
subdivisions four, five and six of  this  section  the  following  terms
shall have the following meanings:
(a)  "refiner" means any person, firm or corporation who owns, leases,
operates, controls or supervises a commercial entity producing  gasoline
or diesel motor fuel;
(b)  "distributor" means any person other than a refiner or dealer who
purchases motor fuel at a terminal facility and supplies motor  fuel  to
service stations; and
(c)  "unbranded  motor  fuel"  means  motor  fuel which does not use a
trademark, trade name, service mark, or other identifying symbol or name
owned by a refiner.
4.  Labeling of unbranded motor fuels. Under any circumstances where a
dealer sells unbranded motor fuel, the dealer shall display a sign which
will be visible to consumers before entering the  station  which  states
that  unbranded fuel is available for sale. The dealer shall also post a
sign disclosing that such supply is unbranded on  each  pump  dispensing
this  fuel.  The  sign shall be at least eight inches by ten inches with
letters not less than three inches in height. The sign shall be  legible
to  the  consumer  from  any  point where a vehicle may be refueled. The
dealer shall cover all logos, trademarks, or other identifying  insignia
of  the refiner on each dispenser used to dispense the product from such
tank or pump. The dealer shall not be required to deface  or  cover  any
other logo, trademark, or insignia at his place of business.
5.  Sale  of  unbranded  product.  A  dealer  who  is entitled to sell
unbranded product shall have the right to mix in any storage tank  motor
fuel  produced or supplied by two or more refiners, including his or her
refiner, as long as such mixture is stored separately from the refiner's
supply and is sold as unbranded.  A  dealer  who  is  entitled  to  sell
unbranded  product shall have the right to mix motor fuel purchased from
a source other than his or her refiner without regard  to  whether  said
motor fuel was sold under or carries any brand, trademark, tradename, or
other  similar  designation.  A  dealer  shall  retail such a mixture as
"unbranded", "no brand", or other similar  designation  indicating  that
the  motor  fuel  does not carry a brand, trademark, tradename, or other
similar designation. A franchisee who markets such a  mixture  shall  be
subject  to  the  posting  and labeling requirements of this article and
article sixteen of the agriculture and markets  law.  Any  violation  of
section one hundred ninety-two-b of the agriculture and markets law by a
dealer  in regards to the marketing of unbranded fuel under this section
shall not be deemed a violation of the refiner under subdivision six  of
such section.
6.  Sale  of refiner's product. A dealer who has sold motor fuel other
than that of the refiner by dispensing such motor fuel  from  a  storage
tank, underground or otherwise, or container or receptacle, shall follow
the procedures set forth in this section before using such storage tank,
container,  or  receptacle  for dispensing the branded motor fuel of the
refiner. Before using such tank to  dispense  the  refiner's  fuel,  the
dealer  shall first empty the tank. The dealer may then use such tank to
dispense motor fuel represented to be the product of such refiner.  With
respect  to  retail gasoline stations, the term "empty the tank" as used
in this section  means  that  the  pump,  dispenser,  device,  or  other
equipment  normally used to dispense or pump motor fuel from the storage
tank into a motor vehicle has reduced the fluid  level  in  the  storage
tank  to  the  point  where  any additional special equipment, such as a
vacuum pump, would be necessary to draw out  the  remaining  residue  of
motor  fuel  in  the tank. The refiner, or his or her employee or agent,
shall have the right to inspect the tank to ensure that it is  empty  in
accordance  with this section and that the labeling requirements of this
section are met.