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The 190th General Court of the Commonwealth of Massachusetts

Section 4A: Marketing agreements; mandatory non-waiverable provisions

Section 4A. Every marketing agreement between a supplier and a retail dealer shall be subject to the following non-waiverable provisions, whether or not they are expressly set forth in the agreement:

(a) No agreement between a retail dealer and a supplier shall require a retail dealer to keep his station open for business any specified number of hours per day or days per week.

(b) No party to a marketing agreement with a retail dealer shall withhold his consent to any assignment, transfer or sale of the marketing agreement without first notifying the retail dealer in writing within thirty days prior to the effective date of said agreement, transfer or sale, stating the specific grounds for such refusal to consent to said assignment, transfer, or sale.

(c) A supplier who requires in a marketing agreement a security deposit for a period of one year or longer for the use of a service station or delivery of fuel shall, beginning with the first day of the agreement, pay interest at the rate of six percent per year, payable to the retail dealer within thirty days after the termination of said agreement. The supplier shall return the security deposit or any balance thereof, and interest thereon, after deducting the amount of any damage caused by the retail dealer or any person on the demised premises with his knowledge or consent, reasonable wear and tear excepted, and less any unpaid rent or other indebtedness.

Any deduction for damage or indebtedness pursuant to this section shall be itemized by the manufacturer or supplier with particularity indicating the nature of the repair necessary to correct any damage and the actual or estimated cost thereof, or the nature of the indebtedness, as the case may be.

If the supplier fails to return to the retail dealer such deposit or the balance thereof as provided herein, he shall be liable in damages in an amount equal to twice the amount of such security deposit or balance thereof, plus interest at the rate of six percent from the date on which payment became due.