Minnesota Session Laws - 1988, Regular Session

  

                         Laws of Minnesota 1988 

                        CHAPTER 663-S.F.No. 1885 
           An act relating to commerce; motor fuel franchises; 
          regulating certain building alterations; providing 
          remedies; amending Minnesota Statutes 1986, section 
          80C.146, subdivisions 2 and 3; proposing coding for 
          new law in Minnesota Statutes, chapter 72B; repealing 
          Laws 1984, chapter 444, section 4, as amended by Laws 
          1986, chapter 343, section 1. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [72B.135] [PUBLIC ADJUSTERS.] 
    Subdivision 1.  [HOMEOWNER'S RIGHT TO CANCEL.] A homeowner 
who has entered into a contract with a public adjuster involving 
the business for which the person was licensed, has the right to 
cancel the contract within 48 hours after the contract has been 
signed.  Cancellation is evidenced by the homeowner giving 
written notice of cancellation to the public adjuster at the 
address stated in the contract.  Notice of cancellation, if 
given by mail, is effective upon deposit in a mailbox, properly 
addressed to the public adjuster and postage prepaid.  Notice of 
cancellation need not take a particular form and is sufficient 
if it indicates, by any form of written expression, the 
intention of the homeowner not to be bound by the contract. 
    Subd. 2.  [WRITING REQUIRED; NOTICE OF RIGHT TO CANCEL; 
NOTICE OF CANCELLATION.] (a) Before entering a contract referred 
to in subdivision 1, the public adjuster must: 
    (1) furnish the homeowner with a statement in bold face 
type of a minimum size of ten points, in substantially the 
following form: 
    "You, the homeowner, may cancel this contract at any time 
within 48 hours after the contract has been signed between the 
homeowner and the public adjuster.  See attached notice of 
cancellation form for an explanation of this right."; and 
    (2) furnish each homeowner, a fully completed form in 
duplicate, captioned, "NOTICE OF CANCELLATION," which shall be 
attached to the contract and easily detachable, and which shall 
contain in bold face type of a minimum size of ten points the 
following information and statements: 
"NOTICE OF CANCELLATION
......................
(enter date of contract)
    If you do not want to go forward with the contract with the 
public adjuster, you may cancel the contract by mailing or 
delivering a signed and dated copy of this cancellation notice 
or any other written notice, or send a telegram to (Name of 
Public Adjuster), at (Address of Public Adjuster's Place of 
Business) not later than midnight of (Date).  If you cancel, any 
payments made by you under the contract will be returned within 
ten business days following receipt by the public adjuster of 
your cancellation notice. 
     I HEREBY CANCEL THIS TRANSACTION. 
     ........... 
          (date) 
     ..............................
          (Homeowner's signature)"
    Subd. 3.  [RETURN OF PAYMENTS; COMPENSATION.] Within ten 
days after a contract referred to in subdivision 1 has been 
canceled, the public adjuster must tender to the homeowner any 
payments made by the homeowner and any note or other evidence of 
indebtedness.  However, if the public adjuster has performed any 
emergency services within the 48 hour period, the public 
adjuster is entitled to compensation for such services.  
Emergency services shall mean the removal of water, boarding up 
a building, and reconnecting lights and heat. 
    Sec. 2.  Minnesota Statutes 1986, section 80C.146, 
subdivision 2, is amended to read:  
    Subd. 2.  [BUILDING ALTERATIONS.] No motor fuel franchisor 
shall alter a full-service station building for the purpose of 
eliminating the service bays unless the motor fuel franchisee 
operating the full-service station consents in writing to the 
alterations.  (a) A motor fuel franchise agreement entered into 
or renewed, extended, or modified, after the effective date of 
this section, must comply with this subdivision if it allows the 
franchisor to modify, remodel, or alter a full-service station 
operated by a franchisee by eliminating one or more service 
bays.  The agreement must provide that if the motor fuel 
franchisor eliminates one or more service bays during the term 
of the agreement, the franchisor must first pay to the 
franchisee in cash an amount that fairly and adequately 
compensates the franchisee for the loss of the service and 
repair business.  The amount of compensation must be determined 
without regard to: 
    (1) the income or loss the franchisee may realize as a 
result of any subsequent or replacement business the franchisee 
may be entitled to operate on the premises leased from the motor 
fuel franchisor; or 
    (2) the income or loss the franchisee may realize by 
relocating the franchisee service and repair business or by 
acquiring another service and repair business. 
    (b) The commissioner shall require inclusion of the 
provision specified in paragraph (a) in the franchise agreement 
as a condition of registration of the agreement.  An agreement 
subject to this subdivision that does not contain the provision 
is deemed to contain the provision.  The provision may not be 
waived or modified except in a writing signed by the franchisee 
that is executed at least 30 days after the execution of the 
franchise agreement, is separate and independent from the 
franchise agreement, and is based upon adequate consideration.  
Adequate consideration may include, without limitation, an 
agreement to purchase the entire business operated by the 
franchisee or an agreement to provide equivalent repair 
facilities for use by the franchisee. 
    (c) If the franchisor and the franchisee are unable to 
agree on the amount of compensation, and either the franchisor 
or the franchisee demands arbitration, the matter must be 
submitted to binding arbitration in accordance with sections 
572.08 to 572.30 and the rules of the American Arbitration 
Association.  Within 30 days after the demand for arbitration, 
the franchisor and the franchisee shall each select an 
arbitrator.  The two arbitrators shall select a third arbitrator 
within 45 days after the demand for arbitration.  The franchisor 
and the franchisee shall pay the fees and expenses of the 
arbitrator each selects, and the franchisor and franchisee shall 
share equally the fees and expenses of the third arbitrator. 
    (d) Nothing in this subdivision prohibits a motor fuel 
franchisor from altering, modifying, or remodeling a 
full-service station that is not operated by a, without payment 
to the franchisee, following the expiration of the franchise 
relationship based upon termination or nonrenewal of the 
franchise relationship in accordance with United States Code, 
title 15, section 2802(b)(3)(D). 
    Sec. 3.  Minnesota Statutes 1986, section 80C.146, 
subdivision 3, is amended to read:  
    Subd. 3.  [ENFORCEMENT.] The attorney general or any 
aggrieved party may institute a civil action in the district 
court for an injunction prohibiting any violation of subdivision 
2 and an award of costs, disbursements, and reasonable 
attorney's fees.  It shall be is no defense to such an the 
action that the state or aggrieved party may have adequate 
remedies at law.  
    Sec. 4.  [REPEALER.] 
    Laws 1984, chapter 444, section 4, as amended by Laws 1986, 
chapter 343, section 1, is repealed. 
    Sec. 5.  [EFFECTIVE DATE.] 
    Sections 2 to 4 are effective the day following final 
enactment. 
    Approved April 26, 1988