Iowa General Assembly Banner


323.6 Conditions barring change in distributor franchise.

Notwithstanding the terms, provisions or conditions of a distributor franchise, the following shall not constitute good cause for the termination or refusal to renew a distributor franchise:

1. The sole fact that the franchiser desires further penetration of the market.

2. The change of executive management of the distributor, unless the franchiser, having the burden of proof, proves that the change of executive management will be substantially detrimental to the distribution of the franchiser's motor fuels or special fuels in the area served by the distributor.

3. The sale or change of ownership of the distributor's business, unless the transfer of the distributor's license pursuant to chapter 452A is denied or the new owner is unable to obtain a license under chapter 452A.

Section History: Early form

[C75, 77, 79, 81, § 323.6]

Internal References

Referred to in § 323.7


Return To Home Iowa General Assembly

index Search: Iowa Code 1995

© 1996 Cornell College and League of Women Voters of Iowa


Comments? webmaster@legis.iowa.gov.

Last update: Thu Feb 8 18:14:51 CST 1996
URL: /IACODE/1995/323/6.html
jhf