Tennessee § 47-25-605 Improper franchise termination - Presumption - Damages

Tennessee Statutes

§ 47-25-605 — Improper franchise termination - Presumption - Damages

(a)Any vertically integrated producer who:

(1)Terminates, fails to renew, or in any manner attempts to cause the cancellation of a franchise agreement with a dealer through the use of price or service discrimination, the imposition of unreasonable hours of operation requirements, or products allocation discrimination, or otherwise attempts to effectuate the termination of a franchise agreement for reasons other than those permitted in § 47-25-604 ;

(2)Has operated under a franchise with such vertically integrated producer for one (1) year or more; and (3) Upon the termination of the franchise agreement, converts the premises into a producer operated facility within two (2) years after the franchise agreement is terminated; shall be presumed to engage in operations, arrangements, or agre

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(a) Any vertically integrated producer who: (1) Terminates, fails to renew, or in any manner attempts to cause the cancellation of a franchise agreement with a dealer through the use of price or service discrimination, the imposition of unreasonable hours of operation requirements, or products allocation discrimination, or otherwise attempts to effectuate the termination of a franchise agreement for reasons other than those permitted in § 47-25-604 ; (2) Has operated under a franchise with such vertically integrated producer for one (1) year or more; and (3) Upon the termination of the franchise agreement, converts the premises into a producer operated facility within two (2) years after the franchise agreement is terminated; shall be presumed to engage in operations, arrangements, or agreements which tend to lessen full and free competition and enhance vertical integration in violation of public policy and this part and in violation of part 1 of this chapter. (b) Any corporation adjudicated to be in violation of this section shall be liable for the damages and penalties set forth in part 1 of this chapter. (c) Presumptions arising under the operation of this section are rebuttable and may be overcome by clear and convincing evidence to the contrary.

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