2864

LAWS OF MARYLAND

Ch. 993

distribution of gasoline products to noncontrolled
outlets; defining certain terms; and exempting certain
persons and farm cooperatives.

BY renumbering

Article - Commercial Law

Section 11-301(b) through 11-301(f), respectively

to be Section 11-301(c) through 11-301 (g)

and 11-301 (c), respectively, to be Section 11—301(c)

and 11-301(d), respectively, and Section 11—301(d)

through 11—301(f), respectively, to be Section

11-301(g) through 11-301(i), respectively

Annotated Code of Maryland

(1975 Volume and 1977 Supplement)

BY adding to

Article - Commercial Law

Section 11-301(b), (e) and (f) and 11-304(1)
Annotated Code of Maryland
(1975 Volume and 1977 Supplement)

Preamble

The General Assembly finds that distributors of
gasoline have sold gasoline in the State through retail
outlets operated by them at prices below or substantially
the same as the wholesale price at which the same
distributors have sold gasoline to their retail dealers.
Because of this pricing policy, retail dealers have been
unable to fairly compete with the retail outlets operated by
the distributors, and as a result, some retail dealers have
ceased their business operations and a substantial number of
retail dealers are faced with unfair competitive pricing
practices which may force them out of business, thereby
substantially reducing the number of independent retail
dealers in this State. While the outlets operated by the
distributors are in these cases selling gasoline at their
retail outlets for a price less than that of their
franchised dealers, the General Assembly is concerned that
as these distributor owned operations become greater in
number in this state, and acquire a larger number of prime
sites, this competition in the sale of gasoline to the
public shall be diminished, resulting in a potential
decrease in independent competitors, creating the potential
for the distributors to take advantage of their then
dominant and potentially collective monopolistic position in
the retail market to substantially increase the retail price
of gasoline to the consuming public in this State. The
intent and purpose of this Act is to preserve competition
among retail service stations in this State for the benefit
of the consuming public and to assure that there will
continue to be substantial competition among the several
types of retail service stations in this State by providing
a basis upon which all competitors shall be on an equal