NRS597.400. Fair compensation required on failure of refiner to renew franchise.

      1.  A refiner shall not fail to renew the franchise of any retailer without fairly compensating the retailer at a fair going business value for his or her capital investment if:

      (a) The capital investment was entered into with reasonable and prudent business judgment for the purpose of fulfilling the franchise; and

      (b) The cancellation or failure to renew was not done in good faith.

      2.  For the purposes of this section, “capital investment” includes, but is not limited to, tools, equipment and any inventory of parts possessed by the retailer on the day of notification of cancellation or nonrenewal and which are still in the retailer’s possession on the day the cancellation or nonrenewal is effective.

      (Added to NRS by 1975, 1281; A 1987, 2199)