California Service Station and Automotive Repair Ass'n v. Union Oil Co.

—Defendant/appellant Union Oil Company of California, doing business as Unocal, appeals a judgment by the trial court declaring its petroleum franchise transfer policy in violation of Business and Professions Code section 21148, and enjoining its further execution.

Procedural History and Facts

Unocal is a California corporation engaged in the business of refining and selling petroleum products. It markets its petroleum fuel products primarily through franchised retail outlets. Unocal offers two types of franchise agreements: (1) Persons with prior experience as Unocal franchisees receive three-year “regular franchises,” which contain an automatic right of renewal and protection from arbitrary termination; and (2) persons without prior experience as Unocal franchisees are offered one-year “trial franchises,” which are terminable at any time for any reason.

Respondent California Service Station and Automotive Repair Association is an incorporated trade association of persons and entities engaged in the retail petroleum industry, including service station owners and operators. Respondent complained that, as a result of Unocal’s franchise policy, franchised dealers are…