Arkansas Code § 15-74-502 - Prohibition Against Requiring Commissioned Agents to Purchase Business According to Department of Energy Fuel Allocation -- Contracts

(a) It shall be unlawful for any major oil company to require or seek to require a commissioned agent of the products of the major oil company to:

(1) Purchase the oil business at a price in which the major oil company has used the Department of Energy fuel allocation assigned to the commissioned agent as a formula or factor to be considered in determining the price at which the major oil company offers to sell the oil business to the commissioned agent; or

(2) Require or attempt to require a commissioned agent of the products of the major oil company to purchase, or to pay an extra price or premium to obtain, their Department of Energy fuel allotment or allocation from the major oil company.

(b) Any contract by which a major oil company requires or seeks to require a commissioned agent of the products of the major oil company to purchase or make payment for their fuel allocation shall be void to the extent that the contract requires the payment and shall be unenforceable in the courts of this state as against public policy. Provided, nothing in this section shall be deemed to prohibit the major oil companies from charging commissioned agents the regular price at which the major oil companies make fuel available to commissioned agents for sale or distribution in this state.

(c) (1) Any major oil company violating the provisions of this section shall be guilty of a Class A misdemeanor and upon conviction shall be punished in the manner provided by law.

(2) Each contract or transaction in violation of the provisions of this section shall be a separate offense and shall be punishable accordingly.

Section: 15-74-502  

Last modified: November 15, 2016