reglab/statecodes huggingface dataset:
2023 New Jersey Revised Statutes › Title 56 - Trade Names, Trade-Marks and Unfair Trade Practices › Section 56:8-225 - Findings, declarations relative to third-party food takeout, delivery applications relative to restaurants.

56:8-225 Findings, declarations relative to third-party food takeout, delivery applications relative to restaurants.
1. The Legislature finds and declares that due to the current state of emergency declared in response to the COVID-19 pandemic, restaurants have been prohibited from offering dine-in service and limited to delivery and takeout offerings only, which has placed a sudden and severe financial strain on many restaurants. This emergency has also resulted in an increased use of third-party food takeout and delivery service applications to place orders with restaurants for food takeout or delivery. While some companies have provided meaningful support to the restaurant community, other companies offering third-party food takeout and delivery services may charge restaurants a service fee exceeding 30 percent of the individual order price, thereby compounding the current financial strain on restaurants. Restaurants that are also small businesses, in particular, may have limited bargaining power to negotiate lower fees. The Legislature finds that it is in the public interest to take action to maximize restaurant revenue from takeout and delivery orders to enable restaurants to survive this crisis and remain sources of employment and community vitality in this State.
L.2020, c.42, s.1.
2023 New Jersey Revised Statutes › Title 56 - Trade Names, Trade-Marks and Unfair Trade Practices › Section 56:8-226 - Limit on service fee.

56:8-226 Limit on service fee.
2. a. It shall be an unlawful practice and a violation of P.L.1960, c.39 (C.56:8-1 et seq.) for any third-party food takeout and delivery service application or Internet website, during and until the first day of the third month following any state of emergency declared by the Governor in response to COVID-19 that restricts restaurant dine-in service to less than 25 percent of the maximum capacity allowed by law, to charge a service fee to a restaurant for food take-out or delivery orders that is:
(1) greater than 20 percent of the cost of the individual order; or
(2) greater than 10 percent of the cost of the individual order, when the order is delivered by an employee of the restaurant or an independent contractor with whom the restaurant has contracted directly.
The provisions of this section shall not be construed to limit the ability of any restaurant to choose to pay up to 25 percent of the cost of the individual order to access additional advertising or other products and services offered by any third-party food takeout and delivery service application or Internet website. However, any restaurant that chooses to pay a service fee that is greater than the fee set forth in the provisions of this section shall be required to affirmatively elect to pay that fee regardless of any contract that is in effect on the effective date of this act unless the contract was entered into prior to the state of emergency declared by the Governor pursuant to Executive Order No. 103 of 2020.
b. The provisions of this section shall supersede and preempt any county or municipal law, ordinance, resolution, or regulation concerning the relationship between third-party food takeout and delivery service applications or Internet websites and any restaurant utilizing its services.
c. As used in this section, "third-party food takeout and delivery service application or Internet website" means any online food ordering and delivery service that allows a consumer to place an order for takeout or delivery from a restaurant.
L.2020, c.42, s.2.
2023 New Jersey Revised Statutes › Title 56 - Trade Names, Trade-Marks and Unfair Trade Practices › Section 56:8-227 - Solicitation by nongovernmental entity, unlawful practice, violation.

56:8-227 Solicitation by nongovernmental entity, unlawful practice, violation.
1. a. It shall be an unlawful practice and a violation of P.L.1960, c.39 (C.56:8-1 et seq.) for any person to send a mailing which constitutes a solicitation by a nongovernmental entity for the purchase of or payment for a product or service which could reasonably be interpreted as falsely implying any State government connection, approval, or endorsement through the use of a seal; insignia; citation to a State statute; name of a State agency, department, commission, or program; trade or brand name; or any other term or symbol.
b. For purposes of this section, "person" means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, public corporation, or any other legal or commercial entity.
The provisions of this section shall not be construed to prevent a cause of action brought for violation of P.L.1960, c.39 (C.56:8-1 et seq.).
L. 2021, c.325.
2023 New Jersey Revised Statutes › Title 56 - Trade Names, Trade-Marks and Unfair Trade Practices › Section 56:9-2 - Definitions

56:9-2. Definitions
a. As used in this act, unless the context otherwise requires "person" shall mean any natural person or persons, or any corporation, partnership, company, trust or association of persons.
b. "Trade or commerce" shall include all economic activity involving or relating to any commodity or service.
c. "Commodity" shall mean any kind of real or personal property.
d. "Service" shall mean any activity which is performed in whole or in part for the purpose of financial gain, including but not limited to sale, rental, leasing or licensing for use.
L.1970, c. 73, s. 2, eff. May 21, 1970.
2023 New Jersey Revised Statutes › Title 56 - Trade Names, Trade-Marks and Unfair Trade Practices › Section 56:9-3 - Contracts and combinations in restraint of trade

56:9-3. Contracts and combinations in restraint of trade
Every contract, combination in the form of trust or otherwise, or conspiracy in restraint of trade or commerce, in this State, shall be unlawful.
L.1970, c. 73, s. 3, eff. May 21, 1970.
2023 New Jersey Revised Statutes › Title 56 - Trade Names, Trade-Marks and Unfair Trade Practices › Section 56:9-4 - Monopolies; unlawful acquisitions

56:9-4. Monopolies; unlawful acquisitions
a. It shall be unlawful for any person to monopolize, or attempt to monopolize, or to combine or conspire with any person or persons, to monopolize trade or commerce in any relevant market within this State.
b. No corporation engaged in commerce shall acquire, directly or indirectly, the whole or any part of the stock or other share capital of another corporation engaged also in commerce, where the effect of such acquisition may be to substantially lessen competition within this State between the corporation whose stock is so acquired and the corporation making the acquisition, or to restrain such commerce in any section or community of this State, or tend to create a monopoly of any line of commerce within this State.
c. No corporation shall acquire, directly or indirectly, the whole or any part of the stock or other share capital of two or more corporations engaged in commerce where the effect of such acquisition, or the use of such stock by the voting or granting of proxies or otherwise, may be to substantially lessen competition within this State between such corporations, or any of them, or to restrain such commerce in any section or community of this State, or tend to create a monopoly of any line of commerce within this State.
d. This section shall not apply to corporations purchasing such stock solely for investment and not using the same by voting or otherwise to bring about, or in attempting to bring about, the substantial lessening of competition. Nor shall anything contained in this section prevent a corporation engaged in commerce from causing the formation of subsidiary corporations for the actual carrying on of their immediate lawful business, or the natural and legitimate branches or extensions thereof, or from owning and holding all or a part of the stock of such subsidiary corporations, when the effect of such formation is not to substantially lessen competition.
e. Nothing contained in this section shall be held to affect or impair any right heretofore legally acquired.
L.1970, c. 73, s. 4, eff. May 21, 1970.
2023 New Jersey Revised Statutes › Title 56 - Trade Names, Trade-Marks and Unfair Trade Practices › Section 56:9-6 - Duties of attorney general

56:9-6. Duties of attorney general
The Attorney General shall investigate suspected violations of, and institute such proceedings as are hereinafter provided for violation of the provisions of this act. The Attorney General may direct the county prosecutor of any county in which such proceedings may be brought to aid and assist him in the conduct of such investigations and proceedings.
L.1970, c. 73, s. 6, eff. May 21, 1970.
2023 New Jersey Revised Statutes › Title 56 - Trade Names, Trade-Marks and Unfair Trade Practices › Section 56:9-7 - Violations; dissolution and other relief

56:9-7. Violations; dissolution and other relief
Upon a violation of this act by any corporation or association organized under the laws of this State, or upon failure to comply with the terms of a final judgment or decree rendered by a court of this State for a violation of the provisions of this act, or to comply with a consent judgment or decree rendered by a court of this State concerning an alleged violation of this act, the Attorney General may institute proper proceedings in a court of competent jurisdiction for the forfeiture of charter rights, franchises, privileges and powers, and for the dissolution of the corporation or association, or for the suspension of the privilege to conduct business within the State. The court, in its discretion, and with due consideration of all relevant factors, including relevant public interests and competitive and economic factors, may order the dissolution, suspend the privilege to conduct business for a specific period, deny such relief, or provide other appropriate relief. A dissolution shall be conducted in accordance with the procedures specified by law for either voluntary or involuntary dissolution of the particular type of corporation or association.
L.1970, c. 73, s. 7, eff. May 21, 1970.
2023 New Jersey Revised Statutes › Title 56 - Trade Names, Trade-Marks and Unfair Trade Practices › Section 56:9-8 - Foreign corporations; violations; relief

56:9-8. Foreign corporations; violations; relief
Upon a violation of this act by a foreign corporation or association exercising the privilege of conducting business within this State, or upon a failure to comply with the terms of a final judgment or decree rendered by a court of this State issued for a violation of the provisions of this act, or to comply with a consent judgment or decree rendered by a court of this State concerning an alleged violation of this act, the Attorney General may institute appropriate proceedings for the revocation or suspension of franchises, privileges, and powers connected with doing business within the State. The court, in its discretion, and with due consideration of all relevant factors, including relevant public interests and competitive and economic factors, may order the revocation, suspend the privilege to conduct business for a specified period, deny relief, or provide other appropriate relief. A revocation shall have the same effect as a failure to qualify to do business in this State.
L.1970, c. 73, s. 8, eff. May 21, 1970.
2023 New Jersey Revised Statutes › Title 56 - Trade Names, Trade-Marks and Unfair Trade Practices › Section 56:9-10 - Injunctions and other relief; jurisdiction

56:9-10. Injunctions and other relief; jurisdiction
a. The Superior Court shall have jurisdiction to prevent and restrain violations of this act. The Attorney General may institute proceedings to prevent and restrain violations. In addition to granting prohibitory injunctions and other restraints for a period and upon terms and conditions necessary to deter the defendant from, and insure against, the committing of a future violation of this act, the court may grant mandatory injunctions reasonably necessary to restore and preserve competition in the trade or commerce affected by the violation. The court may issue temporary restraining orders or prohibitions and the court may proceed in a summary manner.
b. Any person may institute proceedings for injunctive relief, temporary or permanent in the Superior Court against threatened loss or damage to his property or business by a violation of this act, when and under the same conditions and principles as injunctive relief against threatened conduct that will cause loss or damage is granted by courts of equity, under the rules governing such proceedings, and upon the execution of proper bond against damages for an injunction improvidently granted and a showing that the danger of irreparable loss or damage is immediate, a preliminary injunction may issue. If the court issues a permanent injunction, the plaintiff shall be awarded reasonable attorneys' fees, filing fees and reasonable costs of suit. Reasonable costs of suit may include, but shall not be limited to the expenses of discovery and document reproduction.
c. In addition to injunctive relief authorized pursuant to subsection a of this section, any person who violates the provisions of this act shall be liable to a penalty of not more than the greater of $100,000.00 or $500.00 per day for each and every day of said violation.
L.1970, c. 73, s. 10, eff. May 21, 1970.
2023 New Jersey Revised Statutes › Title 56 - Trade Names, Trade-Marks and Unfair Trade Practices › Section 56:9-11 - Violations, crime; grading.

56:9-11 Violations, crime; grading.
11. a. Any person who shall knowingly violate any of the provisions of P.L.1970, c.73 (C.56:9-1 et seq.) or knowingly aid or advise in such violation is guilty of a crime.
b. Any person convicted pursuant to the provisions of subsection a. of this section of a violation involving or affecting trade or commerce of a value less than $1,000,000.00 shall be guilty of a crime of the third degree. Any person convicted pursuant to the provisions of subsection a. of this section of a violation involving or affecting trade or commerce of a value equal to or greater than $1,000,000.00 shall be guilty of a crime of the second degree. Any person convicted pursuant to the provisions of subsection a. of this section of a violation involving bid rigging on public contracts, regardless of the value of trade or commerce involved or affected, shall be guilty of a crime of the second degree.
c. Notwithstanding the provisions of subsections a. and b. of N.J.S.2C:43-3, a person convicted of a crime of the second degree under this section shall be subject to a fine of not less than $50,000.00 nor more than $300,000.00, or, in the case of a corporation, partnership, or other business entity, be subject to a fine of not less than $250,000.00 nor more than $1,000,000.00, or imprisonment, or both, and a person convicted of a crime of the third degree under this section shall be subject to a fine of not less than $25,000.00 nor more than $150,000.00, or, in the case of a corporation, partnership, or other business entity, be subject to a fine of not less than $100,000.00 nor more than $300,000.00, or imprisonment, or both.
L.1970,c.73,s.11; amended 1999, c.440, s.104.
2023 New Jersey Revised Statutes › Title 56 - Trade Names, Trade-Marks and Unfair Trade Practices › Section 56:9-12 - Treble damage suit

56:9-12. Treble damage suit
12. a. Any person who shall be injured in his business or property by reason of anticompetitive conduct in violation of the provisions of P.L.1970, c.73 (C.56:9-1 et seq.) may sue therefor and shall recover a sum of not less than $1,000 or threefold the damages sustained by him and interest on the damages from date of complaint, whichever amount is greater, together with reasonable attorneys' fees, filing fees and reasonable costs of suit; provided that indirect purchasers injured by an illegal overcharge shall be entitled to recover only compensatory damages, together with reasonable attorneys' fees, filing fees, and reasonable costs of suit in actions not brought under subsection b. of this section. Reasonable costs of suit may include, but shall not be limited to the expenses of discovery and document reproduction.
b. The State and any of its political subdivisions and public agencies shall be deemed a person within the meaning of this section. The Attorney General, on behalf of the State or any of its political subdivisions or public agencies, or the political subdivision or public agency at the direction of or with the permission of the Attorney General, may institute an action to recover the damages provided for by this section or by any comparable provisions of Federal law, together with reasonable attorneys' fees, filing fees and reasonable costs of suit.
c. In any action pursuant to P.L.1970, c.73 (C.56:9-1 et seq.), the fact that the State, or any political subdivision or public agency of the State or any political subdivision, or any person who has sustained damages by reason of violation of P.L.1970, c.73 (C.56:9-1 et seq.), has not dealt directly with the defendant shall not bar or otherwise limit recovery except as provided in this section. In any action or actions in which claims are asserted against a defendant by both direct and indirect purchasers, the court may take such steps as the court deems appropriate to avoid duplicate recovery of damages and to obtain substantial fairness. In any action in which both direct and indirect purchasers are involved, a defendant shall be entitled to prove as a partial or complete defense to a claim for damages that the illegal overcharge has been passed on to others, including the defendant, who are themselves entitled to recover, so as to avoid duplication of recovery of damages.
d. In the event damages in a class action or an action instituted by the Attorney General remain unclaimed by, or undistributed to, the direct or indirect purchasers, the class representative or the Attorney General, as applicable, the Attorney General may apply to the court and such funds shall escheat to the State upon showing that reasonable efforts made by the State to distribute the funds have been unsuccessful.
L.1970, c. 73, s. 12, eff. May 21, 1970; amended 2022, c.96, s.4.
2023 New Jersey Revised Statutes › Title 56 - Trade Names, Trade-Marks and Unfair Trade Practices › Section 56:9-13 - Final judgment in civil or criminal proceeding as prima facie evidence

56:9-13. Final judgment in civil or criminal proceeding as prima facie evidence
A final judgment heretofore or hereafter rendered in any civil or criminal proceeding brought by the State for violation of this act to the effect that a defendant has violated said act shall be prima facie evidence against such defendant in any proceeding brought by any other party against such defendant pursuant to section 12 of this act, as to all matters with respect to which said judgment or decree would be an estoppel as between the parties thereto; provided, that this section shall not apply to consent judgments or decrees entered before any testimony has been taken, or to judgments or decrees entered in actions brought under section 12 of this act.
L.1970, c. 73, s. 13, eff. May 21, 1970. Amended by L.1972, c. 37, s. 1, eff. May 25, 1972.
2023 New Jersey Revised Statutes › Title 56 - Trade Names, Trade-Marks and Unfair Trade Practices › Section 56:9-14 - Limitation period

56:9-14. Limitation period
Any action brought to enforce the provisions of this act shall be barred unless commenced within 4 years after the cause of action arose, or if the cause of action is based upon a conspiracy in violation of this act, within 4 years after the plaintiff discovered, or by the exercise of reasonable diligence should have discovered the facts relied upon for proof of the conspiracy. No cause of action barred on the effective date of this act shall be revived by this act. For the purpose of this section, a cause of action for a continuing violation is deemed to arise at any time during the period of such violation.
L.1970, c. 73, s. 14, eff. May 21, 1970.
2023 New Jersey Revised Statutes › Title 56 - Trade Names, Trade-Marks and Unfair Trade Practices › Section 56:9-15 - Suspension of limitations period

56:9-15. Suspension of limitations period
Whenever any civil or criminal proceeding shall be commenced by the State to prevent, restrain or punish a violation of this act, but not including an action brought by the State under section 12 of this act, the running of the statute of limitations in respect of every private right of action arising under this act and based in whole or in part on any matter complained of in said proceeding shall be suspended during the pendency thereof and for 1 year thereafter; provided that whenever the running of the statute of limitations in respect of a cause of action arising under section 12 shall be suspended hereunder, any action to enforce such cause of action shall be forever barred unless commenced either within the period of suspension or within 4 years after the cause of action accrued, whichever is later.
L.1970, c. 73, s. 15, eff. May 21, 1970.
2023 New Jersey Revised Statutes › Title 56 - Trade Names, Trade-Marks and Unfair Trade Practices › Section 56:9-17 - Cooperation with Federal Government and with other states

56:9-17. Cooperation with Federal Government and with other states
The Attorney General may cooperate with officials of the Federal Government and the several states in the enforcement of this act.
L.1970, c. 73, s. 17, eff. May 21, 1970.
2023 New Jersey Revised Statutes › Title 56 - Trade Names, Trade-Marks and Unfair Trade Practices › Section 56:9-18 - Uniform construction

56:9-18. Uniform construction
This act shall be construed in harmony with ruling judicial interpretations of comparable Federal antitrust statutes and to effectuate, insofar as practicable, a uniformity in the laws of those states which enact it.
L.1970, c. 73, s. 18, eff. May 21, 1970.
2023 New Jersey Revised Statutes › Title 56 - Trade Names, Trade-Marks and Unfair Trade Practices › Section 56:9-19 - Appropriation

56:9-19. Appropriation
There is hereby appropriated out of the General State Fund to the Department of Law and Public Safety for the purpose of this act the sum of $100,000.00 for the period ending June 30, 1971, which sum shall be returned to the General State Fund from the sums derived from litigation instituted by the Attorney General under this act or the antitrust laws of the United States, as determined by the Director of the Division of Budget and Accounting. In addition to the sum hereinabove appropriated, there are hereby appropriated as a revolving fund the sums derived as aforesaid for the purpose of paying any additional expenses incurred by the Attorney General in the administration of this act or litigation instituted under the antitrust laws of the United States, provided, however, that the expenditure of such additional sums shall first be approved by the Director of the Division of Budget and Accounting and the Legislative Budget and Finance Director in the same manner as transfers of appropriations are approved.
L.1970, c. 73, s. 19, eff. May 21, 1970.
2023 New Jersey Revised Statutes › Title 56 - Trade Names, Trade-Marks and Unfair Trade Practices › Section 56:10-2 - Legislative findings.

56:10-2 Legislative findings.
2. The Legislature finds and declares that distribution and sales through franchise arrangements in the State of New Jersey vitally affects the general economy of the State, the public interest and the public welfare. It is therefore necessary in the public interest to define the relationship and responsibilities of franchisors and franchisees in connection with franchise arrangements and to protect franchisees from unreasonable termination by franchisors that may result from a disparity of bargaining power between national and regional franchisors and small franchisees. The Legislature finds that these protections are necessary to protect not only retail businesses, but also wholesale distribution franchisees that, through their efforts, enhance the reputation and goodwill of franchisors in this State. Further, the Legislature declares that the courts have in some cases more narrowly construed the Franchise Practices Act than was intended by the Legislature.
L.1971, c.356, s.2; amended 2009, c.235, s.1.
2023 New Jersey Revised Statutes › Title 56 - Trade Names, Trade-Marks and Unfair Trade Practices › Section 56:10-3 - Definitions.

56:10-3 Definitions.
3. As used in this act:
a. "Franchise" means a written arrangement for a definite or indefinite period, in which a person grants to another person a license to use a trade name, trade mark, service mark, or related characteristics, and in which there is a community of interest in the marketing of goods or services at wholesale, retail, by lease, agreement, or otherwise.
b. "Person" means a natural person, corporation, partnership, trust, or other entity and, in case of an entity, it shall include any other entity which has a majority interest in such entity or effectively controls such other entity as well as the individual officers, directors, and other persons in active control of the activities of each such entity.
c. "Franchisor" means a person who grants a franchise to another person.
d. "Franchisee" means a person to whom a franchise is offered or granted.
e. "Sale, transfer or assignment" means any disposition of a franchise or any interest therein, with or without consideration, to include but not be limited to bequest, inheritance, gift, exchange, lease or license.
f. "Place of business" means a fixed geographical location at which the franchisee displays for sale and sells the franchisor's goods or offers for sale and sells the franchisor's services. Place of business shall not mean an office, a warehouse, a place of storage, a residence or a vehicle, except that with respect to persons who do not make a majority of their sales directly to consumers, "place of business" means a fixed geographical location at which the franchisee displays for sale and sells the franchisor's goods or offers for sale and sells the franchisor's services, or an office or a warehouse from which franchisee personnel visit or call upon customers or from which the franchisor's goods are delivered to customers.
L.1971, c.356, s.3; amended 2009, c.235, s.2.
2023 New Jersey Revised Statutes › Title 56 - Trade Names, Trade-Marks and Unfair Trade Practices › Section 56:10-4 - Application of act

56:10-4. Application of act
4. This act applies only:
a. to a franchise (1) the performance of which contemplates or requires the franchisee to establish or maintain a place of business within the State of New Jersey, (2) where gross sales of products or services between the franchisor and franchisee covered by such franchise shall have exceeded $35,000.00 for the 12 months next preceding the institution of suit pursuant to this act, and (3) where more than 20% of the franchisee's gross sales are intended to be or are derived from such franchise; or
b. to a franchise for the sale of new motor vehicles as defined in R.S.39:10-2, the performance of which contemplates or requires the franchisee to establish or maintain a place of business within the State of New Jersey.
L.1971,c.356,s.4; amended 1993,c.189,s.1.
2023 New Jersey Revised Statutes › Title 56 - Trade Names, Trade-Marks and Unfair Trade Practices › Section 56:10-5 - Termination of franchise; notice; grounds

56:10-5. Termination of franchise; notice; grounds
It shall be a violation of this act for any franchisor directly or indirectly through any officer, agent, or employee to terminate, cancel, or fail to renew a franchise without having first given written notice setting forth all the reasons for such termination, cancellation, or intent not to renew to the franchisee at least 60 days in advance of such termination, cancellation, or failure to renew, except (1) where the alleged grounds are voluntary abandonment by the franchisee of the franchise relationship in which event the aforementioned written notice may be given 15 days in advance of such termination, cancellation, or failure to renew; and (2) where the alleged grounds are the conviction of the franchisee in a court of competent jurisdiction of an indictable offense directly related to the business conducted pursuant to the franchise in which event the aforementioned termination, cancellation or failure to renew may be effective immediately upon the delivery and receipt of written notice of same at any time following the aforementioned conviction. It shall be a violation of this act for a franchisor to terminate, cancel or fail to renew a franchise without good cause. For the purposes of this act, good cause for terminating, canceling, or failing to renew a franchise shall be limited to failure by the franchisee to substantially comply with those requirements imposed upon him by the franchise.
L.1971, c. 356, s. 5, eff. Dec. 21, 1971.
2023 New Jersey Revised Statutes › Title 56 - Trade Names, Trade-Marks and Unfair Trade Practices › Section 56:10-6 - Transfer of franchise; notice; approval; agreement of compliance

56:10-6. Transfer of franchise; notice; approval; agreement of compliance
It shall be a violation of this act for any franchisee to transfer, assign or sell a franchise or interest therein to another person unless the franchisee shall first notify the franchisor of such intention by written notice setting forth in the notice of intent the prospective transferee's name, address, statement of financial qualification and business experience during the previous 5 years. The franchisor shall within 60 days after receipt of such notice either approve in writing to the franchisee such sale to proposed transferee or by written notice advise the franchisee of the unacceptability of the proposed transferee setting forth material reasons relating to the character, financial ability or business experience of the proposed transferee. If the franchisor does not reply within the specified 60 days, his approval is deemed granted. No such transfer, assignment or sale hereunder shall be valid unless the transferee agrees in writing to comply with all the requirements of the franchise then in effect.
L.1971, c. 356, s. 6, eff. Dec. 21, 1971.
2023 New Jersey Revised Statutes › Title 56 - Trade Names, Trade-Marks and Unfair Trade Practices › Section 56:10-6.2 - Inapplicability of act to certain distributors.

56:10-6.2 Inapplicability of act to certain distributors.
2. The provisions of P.L.2009, c.63 (C.56:10-6.1 et seq.) pertaining to franchisors shall not apply to any distributor which owns or otherwise controls through lease, fewer than 40 premises. For purposes of this section, "distributor" means any person, including any affiliate of such person, who: (1) purchases motor fuel for sale, consignment, or distribution to another; or (2) receives motor fuel for consignment or distribution to the person's or affiliate's own motor fuel accounts, but shall not include a person who merely serves as a common carrier providing transportation services for another.
L.2009, c.63, s.2.
2023 New Jersey Revised Statutes › Title 56 - Trade Names, Trade-Marks and Unfair Trade Practices › Section 56:10-6.3 - Inapplicability of act relative to family members.

56:10-6.3 Inapplicability of act relative to family members.
3. The provisions of P.L.2009, c.63 (C.56:10-6.1 et seq.) shall not apply to the sale, transfer, or assignment of one or more franchise premises from one family member to another family member. For the purposes of this section, "family member" means a spouse, child, parent, sibling, aunt, uncle, niece, nephew, first cousin, grandparent, grandchild, father-in-law, mother-in-law, son-in-law, daughter-in-law, stepparent, stepchild, stepbrother, stepsister, half brother, or half sister, whether the individual is related by blood, marriage, or adoption.
L.2009, c.63, s.3.
2023 New Jersey Revised Statutes › Title 56 - Trade Names, Trade-Marks and Unfair Trade Practices › Section 56:10-6.4 - Severability.

56:10-6.4 Severability.
4. If any provision of P.L.2009, c.63 (C.56:10-6.1 et seq.) or the application of any such provision to any person or circumstance should be held invalid by a court of competent jurisdiction, the remainder of P.L.2009, c.63 (C.56:10-6.1 et seq.) and the application of its provisions to persons or circumstances other than those with respect to whom or which it is held invalid shall not be affected thereby.
L.2009, c.63, s.4.
2023 New Jersey Revised Statutes › Title 56 - Trade Names, Trade-Marks and Unfair Trade Practices › Section 56:10-7 - Prohibited practices.

56:10-7 Prohibited practices.
7. It shall be a violation of this act for any franchisor, directly or indirectly, through any officer, agent or employee, to engage in any of the following practices:
a. To require a franchisee at time of entering into a franchise arrangement to assent to a release, assignment, novation, waiver or estoppel which would relieve any person from liability imposed by this act.
b. To prohibit directly or indirectly the right of free association among franchisees for any lawful purpose.
c. To require or prohibit any change in management of any franchisee unless such requirement or prohibition of change shall be for good cause, which cause shall be stated in writing by the franchisor.
d. To restrict the sale of any equity or debenture issue or the transfer of any securities of a franchise or in any way prevent or attempt to prevent the transfer, sale or issuance of equity securities or debentures to employees, personnel of the franchisee, or spouse, child or heir of an owner, as long as basic financial requirements of the franchisor are complied with, and provided any such sale, transfer or issuance does not have the effect of accomplishing a sale or transfer of control, including, but not limited to, change in the persons holding the majority voting power of the franchise. Nothing contained in this subsection shall excuse a franchisee's obligation to provide prior written notice of any change of ownership to the franchisor if that notice is required by the franchise.
e. To impose unreasonable standards of performance upon a franchisee.
f. To provide any term or condition in any lease or other agreement ancillary or collateral to a franchise, which term or condition directly or indirectly violates this act.
L.1971,c.356,s.7; amended 1999, c.45, s.1.
2023 New Jersey Revised Statutes › Title 56 - Trade Names, Trade-Marks and Unfair Trade Practices › Section 56:10-7.1 - Prohibition of purchase of alternate motor fuel by franchisee; violation

56:10-7.1. Prohibition of purchase of alternate motor fuel by franchisee; violation
a. It shall be a violation of the act to which this act is a supplement for any franchisor, directly or indirectly, through any officer, agent, or employee, to prohibit any franchisee engaged in the retail sale of motor gasoline from purchasing any suitable alternate motor fuel from whatever authorized source that it is available; to reduce allocations of motor gasoline to any franchisee because of the purchase by the franchisee of an alternate motor fuel; or to prohibit the use of franchisor issued credit cards to purchase a suitable alternate motor fuel; provided that:
(1) The franchisee has shown that reasonable efforts to secure adequate supplies of the alternate motor fuel from the franchisor have failed;
(2) The franchisee continues to meet all other terms and conditions of the franchise agreement;
(3) The franchisee shall adequately inform consumers of the alternate motor fuel of the change in type or trade name with reasonable labeling of pumps dispensing the alternate motor fuel to indicate, where appropriate, that such alternate motor fuel is not manufactured, distributed, or sold by such franchisor.
b. As used in this section, "alternate motor fuel" means diesel fuel or any liquid which is the product of the combination of motor gasoline and any other liquid or gaseous substance which is not derivative of petroleum, and which is used for the purpose of operating a mechanical device powered by internal combustion.
L.1981, c. 127, s. 1, eff. April 27, 1981.
2023 New Jersey Revised Statutes › Title 56 - Trade Names, Trade-Marks and Unfair Trade Practices › Section 56:10-7.2 - Findings, declarations

56:10-7.2. Findings, declarations
The Legislature hereby finds and declares the following:
a. Notwithstanding the enactment of the "Franchise Practices Act," P.L. 1971, c. 356 (C. 56:10-1 et seq.), and other legislation dealing with the franchisor-franchisee relationship, including, but not limited to P.L. 1982, c. 156 (C. 56:10-17 et seq.), inequality of bargaining power continues to exist between motor vehicle franchisors and motor vehicle franchisees. This inequality of bargaining power exists even as to motor vehicle franchisees who have had their franchises for many years and who have expended large sums of money in the promotion of their franchises.
b. This inequality of bargaining power enables motor vehicle franchisors to compel motor vehicle franchisees to execute franchises and related leases and agreements which contain terms and conditions that would not routinely be agreed to by the motor vehicle franchisees absent the compulsion and duress which arise out of the inequality of bargaining power. These terms and conditions are detrimental to the interests of the motor vehicle franchisees in that they require the motor vehicle franchisees to relinquish their rights which have been established by the "Franchise Practices Act" and supplemental legislation and other statutes and laws of this State.
c. As a result, motor vehicle franchisees have been denied the opportunity to have disputes with their motor vehicle franchisors arising out of the franchisor-franchisee relationship heard in an appropriate venue, convenient to both parties, by tribunals established by statute for the resolution of these disputes. It is therefore necessary and in the public interest to ensure that motor vehicle franchisees voluntarily determine whether to agree to certain terms and conditions contained in franchises and related leases and agreements presented to them by motor vehicle franchisors and under circumstances unaffected by the compulsion which arises from the inequality of bargaining power.
L. 1989, c. 24, s. 1.
2023 New Jersey Revised Statutes › Title 56 - Trade Names, Trade-Marks and Unfair Trade Practices › Section 56:10-7.3 - Prohibited conditions, terms of franchise.

56:10-7.3 Prohibited conditions, terms of franchise.
2. a. It shall be a violation of the "Franchise Practices Act," P.L.1971, c.356 (C.56:10-1 et seq.) for a motor vehicle franchisor to require a motor vehicle franchisee to agree to a term or condition in a franchise, or in any lease or agreement ancillary or collateral to a franchise, which:
(1) Requires the motor vehicle franchisee to waive trial by jury in actions involving the motor vehicle franchisor; or
(2) Specifies the jurisdictions, venues or tribunals in which disputes arising with respect to the franchise, lease or agreement shall or shall not be submitted for resolution or otherwise prohibits a motor vehicle franchisee from bringing an action in a particular forum otherwise available under the law of this State; or
(3) Requires that disputes between the motor vehicle franchisor and motor vehicle franchisee be submitted to arbitration or to any other binding alternate dispute resolution procedure; provided, however, that any franchise, lease or agreement may authorize the submission of a dispute to arbitration or to binding alternate dispute resolution if the motor vehicle franchisor and motor vehicle franchisee voluntarily agree to submit the dispute to arbitration or binding alternate dispute resolution at the time the dispute arises.
b. For the purposes of this section, it shall be presumed that a motor vehicle franchisee has been required to agree to a term or condition in violation of this section as a condition of the offer, grant or renewal of a franchise or of any lease or agreement ancillary or collateral to a franchise, if the motor vehicle franchisee, at the time of the offer, grant or renewal of the franchise, lease or agreement is not offered the option of an identical franchise, lease or agreement without the term or condition proscribed by this section.
c. In addition to any remedy provided in the "Franchise Practices Act," any term or condition included in a franchise, or in any lease or agreement ancillary or collateral to a franchise, in violation of this section may be revoked by the motor vehicle franchisee by written notice to the motor vehicle franchisor within 60 days of the motor vehicle franchisee's receipt of the fully executed franchise, lease or agreement. This revocation shall not otherwise affect the validity, effectiveness or enforceability of the franchise, lease or agreement.
L.1989, c.24, s.2; amended 2011, c.66, s.1.
2023 New Jersey Revised Statutes › Title 56 - Trade Names, Trade-Marks and Unfair Trade Practices › Section 56:10-8 - Application of act to prior grants of franchises

56:10-8. Application of act to prior grants of franchises
This act shall not apply to a franchise granted prior to the effective date of this act, provided, however, that a renewal of a franchise or an amendment to an existing franchise shall not be excluded from the application of this act.
L.1971, c. 356, s. 8, eff. Dec. 21, 1971.
2023 New Jersey Revised Statutes › Title 56 - Trade Names, Trade-Marks and Unfair Trade Practices › Section 56:10-9 - Action against franchisor; defenses

56:10-9. Action against franchisor; defenses
It shall be a defense for a franchisor, to any action brought under this act by a franchisee, if it be shown that said franchisee has failed to substantially comply with requirements imposed by the franchise and other agreements ancillary or collateral thereto.
L.1971, c. 356, s. 9, eff. Dec. 21, 1971.
2023 New Jersey Revised Statutes › Title 56 - Trade Names, Trade-Marks and Unfair Trade Practices › Section 56:10-10 - Action against franchisor; damages; injunction; costs

56:10-10. Action against franchisor; damages; injunction; costs
Any franchisee may bring an action against its franchisor for violation of this act in the Superior Court of the State of New Jersey to recover damages sustained by reason of any violation of this act and, where appropriate, shall be entitled to injunctive relief. Such franchisee, if successful, shall also be entitled to the costs of the action including but not limited to reasonable attorney's fees.
L.1971, c. 356, s. 10, eff. Dec. 21, 1971.
2023 New Jersey Revised Statutes › Title 56 - Trade Names, Trade-Marks and Unfair Trade Practices › Section 56:10-11 - Severability

56:10-11. Severability
If any provision of this law or the application thereof to any person or circumstance is held invalid, the invalidity shall not affect other provisions or applications of the law which can be given effect without the invalid provision or application, and to this end the provisions of this law are severable.
L.1971, c. 356, s. 11, eff. Dec. 21, 1971.
2023 New Jersey Revised Statutes › Title 56 - Trade Names, Trade-Marks and Unfair Trade Practices › Section 56:10-12 - Limitation of liability of franchisor, its officers, agents or employees for furnishing information

56:10-12. Limitation of liability of franchisor, its officers, agents or employees for furnishing information
No liability on the part of and no cause of action of any nature other than as provided by this act shall arise against any franchisor, its officers, agents or employees furnishing information as to reasons for termination, cancellation, intent not to renew, failure to renew, unacceptability of a proposed transferee, or relating to the character, financial ability or business experience of a proposed transferee, or for statements made or evidence submitted at any hearing or trial conducted in connection therewith.
L.1971, c. 356, s. 12, eff. Dec. 21, 1971.
2023 New Jersey Revised Statutes › Title 56 - Trade Names, Trade-Marks and Unfair Trade Practices › Section 56:10-13 - Definitions

56:10-13. Definitions
1. For the purposes of this act:
"Motor vehicle franchisor" means a franchisor engaged in the business of manufacturing or assembling new motor vehicles, who will, under normal business conditions during the year, manufacture or assemble at least 10 new motor vehicles, and his motor vehicle distributors;
"Motor vehicle franchisee" means every franchisee actively engaged in the business of buying, selling or exchanging new motor vehicles and who has an established place of business;
"Motor vehicle franchise" means a franchise for the marketing of new motor vehicles;
"New motor vehicle" means only a newly manufactured motor vehicle, and includes all vehicles propelled otherwise than by muscular power, and motorcycles, trailers and tractors, excepting: (1) those vehicles as run only upon rails or tracks and motorized bicycles, and buses, including school buses; and (2) those motor vehicles not designed or used primarily for the transportation of persons or property and only incidentally operated or moved over a highway.
L.1977,c.84,s.1; amended 1991,c.459,s.1.
2023 New Jersey Revised Statutes › Title 56 - Trade Names, Trade-Marks and Unfair Trade Practices › Section 56:10-13.1 - Violations concerning relocations

56:10-13.1. Violations concerning relocations
2. It shall be a violation of the "Franchise Practices Act," P.L.1971, c.356 (C.56:10-1 et seq.) for any motor vehicle franchisor, directly or indirectly, through any officer, agent or employee, to prohibit or restrict the relocation of a motor vehicle franchise unless:
a. the relocation will leave that franchisor without representation in the primary market area of the relocating motor vehicle franchisee;
b. the relocation will have a material adverse effect on an existing motor vehicle franchisee;
c. the place of business to which the motor vehicle franchisee proposes to relocate does not substantially satisfy the reasonable standards for franchise facilities established by the motor vehicle franchisor in writing and made available to its franchisees; or
d. the relocation is determined to be injurious pursuant to P.L.1982, c.156 (C.56:10-16 et seq.).
L.1991,c.459,s.2.
2023 New Jersey Revised Statutes › Title 56 - Trade Names, Trade-Marks and Unfair Trade Practices › Section 56:10-13.4 - Discontinuation of a series or line, effective termination

56:10-13.4. Discontinuation of a series or line, effective termination
5. For the purposes of sections 3 and 4 of this 1991 amendatory and supplementary act, and section 5 of the "Franchise Practices Act," P.L.1971, c.356 (C.56:10-5), the termination, cancellation or discontinuation of a series, line, brand or class of new motor vehicle marketed by a motor vehicle franchisor as a distinct series, line, brand or class shall be deemed to be the termination, cancellation or nonrenewal of the motor vehicle franchise of a motor vehicle franchisee holding a franchise which includes that series, line, brand or class, even if that series, line, brand or class of new motor vehicle is part of a motor vehicle franchise which includes other series, lines, brands or classes of new motor vehicles. Notwithstanding the provisions of this section, a franchisor may change, add or delete models, specifications, model names, numbers or identifying marks or similar characteristics of the new motor vehicles it markets, if those changes, additions or deletions do not result, directly or indirectly, in the termination, cancellation or discontinuation of a distinct series, line, brand or class of new motor vehicle.
L.1991,c.459,s.5.
2023 New Jersey Revised Statutes › Title 56 - Trade Names, Trade-Marks and Unfair Trade Practices › Section 56:10-13.5 - Interest on overdue payments

56:10-13.5. Interest on overdue payments
6. If a motor vehicle franchisor fails to make any payment required by this 1991 amendatory and supplementary act within the time specified for payment, interest shall be added to that payment at the rate of 12% per annum from the date payment was due.
L.1991,c.459,s.6.