I. PREEMPTION OF STATE LAW - § 2806(a)
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California Service Station & Automotive Repair Ass'n v. Union Oil Company of California, 232 Cal. App. 3d 44, 283 Cal. Rptr. 279 (Cal. Ct. App. 7-10-91)
Declaratory and injunctive relief to franchisee. State court found that state law pertaining to assignment of franchises was not preempted by the PMPA unless the assignment is used to circumvent a termination or nonrenewal permitted by the PMPA. Franchisor had a policy of refusing to transfer a three-year franchise to a franchisee who had never been a UNOCAL dealer while allowing its franchisees to assign three-year franchises to dealers who had been UNOCAL dealers in the past. Franchisor's requirement that all new franchisees take a one-year trial franchise was found to violate § 21148(a)(3) of the California Bus. & Pro. Code.
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