2007 Minnesota Statutes

80F.03 SURVIVORSHIP.
    Subdivision 1. Designated family member. For purposes of this section, "designated family
member" means the spouse, child, grandchild, parent, brother, or sister of the operator.
    Subd. 2. Right to succeed to agreement. Any designated family member of a deceased or
incapacitated dealer may succeed to the marketing agreement if (1) the designated family member
gives the supplier written notice of the intention to succeed to the agreement within 60 days of the
dealer's death; (2) the designated family member agrees to be bound by the terms and conditions
of a written existing marketing agreement; and (3) the designated family member is a person who
meets the supplier's reasonable standards. At the request of the supplier, the designated family
member must provide any personal and financial data that is reasonably necessary to determine
whether the designated family member meets the reasonable standards of the supplier.
    Subd. 3. Standards. Reasonable standards used by a supplier may include, but are not
limited to, consideration of the designated family member's ability and potential to operate the
facility at the same level as the former operator, and of the designated family member's gasoline
marketing experience, education, creditworthiness, and management experience.
    Subd. 4. Written agreement to be offered. If the marketing agreement under which the
deceased or incapacitated dealer operated the facility was oral, the supplier shall offer a reasonable
written agreement to the designated family member within 30 days of the designated family
member's notification to the supplier of intent to succeed to the agreement. If the designated
family member does not, within 30 days after receiving the written agreement from the supplier,
either accept the terms of the offered agreement or object to the terms as unreasonable, the
designated family member shall be deemed to have waived the right of succession.
    Subd. 5. Refusal to allow succession. If a supplier believes in good faith that the designated
family member does not meet the supplier's reasonable standards, the supplier shall notify the
designated family member of the refusal to allow succession and intent to terminate the marketing
agreement. This notice must be provided no more than 90 days after the supplier receives all
personal and financial data requested from the designated family member. The agreement must
not be terminated less than 90 days after notice is served on the designated family member.
    Subd. 6. Dispute regarding right of succession; burden of proof. In determining whether a
designated family member failed to meet a supplier's reasonable standards, the supplier has the
burden of proving that the standards used are reasonable, and the designated family member has
the burden of proving that those standards that are reasonable have been met.
    Subd. 7. Permissible condition on succession. As a condition of succession, the supplier
may require that reasonable arrangements be entered into for the payment of rent or product
payment during the interim period from the date of the dealer's death or incapacity until
succession is completed or the right to succession is terminated.
History: 2000 c 456 s 8