(a) Any vertically integrated producer who:

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Terms Used In Tennessee Code 47-25-605

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Dealer: means any person, firm, corporation, or partnership engaged in the sale of petroleum products to the public at retail. See Tennessee Code 47-25-602
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Franchise: includes a contract or agreement under which such dealer is granted authority to occupy premises owned, leased, or in any way controlled by a producer or distributor, which premises are to be employed for the sale or distribution of petroleum or related products under the producer or distributor's petroleum trademark, trade name, service mark, or other identifying symbol or name which is controlled by the distributor or producer. See Tennessee Code 47-25-602
  • Producer: means any person, firm, partnership or corporation engaged in the drilling, pumping, importing, refining, or wholesaling of petroleum and related products under a trademark, trade name, service mark, or other identifying symbol or name whether or not such organization distributes such products to dealers. See Tennessee Code 47-25-602
  • Vertical integration: means the ownership or control of all phases of the production of petroleum products including the drilling, pumping, refining, distribution, and resale of such petroleum products by a person, firm, partnership or corporation or from the well to the gasoline pump. See Tennessee Code 47-25-602
  • Vertically integrated producer: means a producer controlling all phases of petroleum production and sale from the well through distribution to dealers as defined herein. See Tennessee Code 47-25-602
  • Year: means a calendar year, unless otherwise expressed. See Tennessee Code 1-3-105
(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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