Petroleum Marketing Practices Act Law and Legal Definition

The Petroleum Marketing Practices Act is a federal law that governs many petroleum supply contracts. The law is intended to protect franchised distributors and retailers of gasoline and diesel motor fuel against arbitrary or discriminatory termination or nonrenewal of franchises. It establishes minimum federal standards governing the termination of franchises and the nonrenewal of franchise relationships by the franchisor or distributor of such fuel.

The term "franchise" is broadly defined as a license to use a motor fuel trademark which is owned or controlled by a refiner, and it includes secondary arrangements such as leases of real property and motor fuel supply arrangements which have existed continuously since May 15, 1973 regardless of a subsequent withdrawal of a trademark.