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(Download) "Draeger Oil Company, Inc. v. Uno-Ven Company" by Seventh Circuit U.S. Court of Appeals ~ eBook PDF Kindle ePub Free

Draeger Oil Company, Inc. v. Uno-Ven Company

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eBook details

  • Title: Draeger Oil Company, Inc. v. Uno-Ven Company
  • Author : Seventh Circuit U.S. Court of Appeals
  • Release Date : January 26, 2002
  • Genre: Law,Books,Professional & Technical,
  • Pages : * pages
  • Size : 68 KB

Description

ARGUED SEPTEMBER 13, 2002 The Petroleum Marketing Practices Act, 15 U.S.C. §§ 2801 et seq., is a federal statute for the protection of franchised dealers and distributors of gasoline and other petroleum projects. The ostensible theory of such statutes (ostensible because it is unclear why the intended beneficiaries could not obtain similar protection by contractual negotiation) is that a franchised dealer in effect invests in the franchisor's trademarks and as a result creates goodwill for the franchisor which the latter might on occasion be tempted to appropriate by terminating the franchisee. Brach v. Amoco Oil Co., 677 F.2d 1213, 1220 (7th Cir. 1982); cf. Praefke Auto Electric & Battery Co. v. Tecumseh Products Co., 255 F.3d 460, 464-65 (7th Cir. 2001); Fleet Wholesale Supply Co. v. Remington Arms Co., 846 F.2d 1095, 1097 (7th Cir. 1988). To prevent such opportunistic behavior the Act limits the franchisor's right to terminate its franchisees. Limits, but of course does not prohibit altogether. The Act authorizes termination of a franchise on a variety of grounds, of which the one pertinent to this case is ""the occurrence of an event which is relevant to the franchise relationship and as a result of which termination of the franchise . . . is reasonable."" 15 U.S.C. § 2802(b)(2)(C). This suit by a class of gasoline dealers complains about the cancellation of their franchise to sell gasoline under the trademarked brand names ""Union 76,"" ""Union,"" ""76,"" and ""Unocal"" by the defendants, primarily Union Oil Company of California, popularly known as Unocal. The district court granted summary judgment in favor of the defendants.


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