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J. ASSIGNMENT - § 2806(b)
  • 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)

    Injunction granted plaintiff. Terms and validity of assignment are governed by state law. PMPA does not preempt California law that prohibits a franchisor from withholding consent to an assignment of a trial franchise to a franchisee with no prior experience with franchisor since the state law does not regulate termination or nonrenewal. State intermediate appellate court held that the unexpired portion of a trial franchise becomes a franchise under § 2801(1)(B)(iii) and § 2803(b)(2) and is subject to state laws on assignment.


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