The U.S. Supreme Court has scheduled argument on Jan. 19, 2010, in Mac’s Shell Service Inc. v. Shell Oil Products Co . The case involves a claim by a group of gasoline retail dealers against their franchiser under the Petroleum Marketing Practices Act for constructive termination and constructive non-renewal.
The act, 15 U.S.C. §§2801 et seq., regulates the circumstances in which a petroleum refiner or wholesaler can “terminate” a service station franchise or “fail to renew” a franchise relationship. In this case, several Massachusetts service station dealers claimed that they had been “constructively terminated” in violation of the act, even though they continued to operate their franchises. Similarly, the dealers claimed that they had been “constructively non-renewed” in violation of the act, even though they were offered and signed renewal agreements.
