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Minnesota Legislature

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

  

                         Laws of Minnesota 1989 

                        CHAPTER 198-H.F.No. 268 
           An act relating to commerce; clarifying legislative 
          intent regarding unfair practices under a franchise 
          agreement; amending Minnesota Statutes 1988, sections 
          80C.14, subdivision 1; and 80C.21. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1988, section 80C.14, 
subdivision 1, is amended to read: 
    Subdivision 1.  [PROHIBITION.] No person, whether by means 
of a term or condition of a franchise or otherwise, shall engage 
in any unfair or inequitable practice in contravention of such 
rules as the commissioner may adopt defining as to franchises 
the words "unfair and inequitable."  For the purpose of rules 
defining the words "unfair and inequitable," the commissioner 
may specifically recognize classifications of franchises 
including but not limited to the classifications of motor 
vehicle fuel franchises, motor vehicle franchises, hardware 
franchises, and franchises which require that the franchisee 
make an initial, unfinanced investment in excess of $200,000.  A 
violation of this section is enjoinable by a court of competent 
jurisdiction.  Irreparable harm to the franchisee will be 
presumed if there is a violation of this section by a person who 
is required to register under section 80C.02, but who fails to 
do so. 
    A temporary injunction may be granted under this section 
without requiring the posting of any bond or security.  A bond 
or security is required if a temporary restraining order is 
granted.  
    Sec. 2.  Minnesota Statutes 1988, section 80C.21, is 
amended to read: 
    80C.21 [WAIVERS VOID.] 
    Any condition, stipulation or provision, including any 
choice of law provision, purporting to bind any person who, at 
the time of acquiring a franchise is a resident of this state, 
or, in the case of a partnership or corporation, organized or 
incorporated under the laws of this state, or purporting to bind 
a person acquiring any franchise to be operated in this state to 
waive compliance or which has the effect of waiving compliance 
with any provision of sections 80C.01 to 80C.22 or any rule or 
order thereunder is void.  
    Sec. 3.  [INTENT.] 
    Sections 1 and 2 are a restatement and clarification of the 
legislative intent of sections 80C.14, subdivision 1, and 
80C.21, and must not be construed as a modification of existing 
law. 
    Sec. 4.  [EFFECTIVE DATE.] 
    Sections 1 to 3 are effective the day following final 
enactment. 
    Presented to the governor May 18, 1989 
    Signed by the governor May 19, 1989, 11:05 p.m.