Arkansas Motor Fuel Supply Agreements/Documenting the Jobber/Retailer Relationship: Fall Edition of the Arkansas Oil Marketers Association Publication - THE CANOPY

I authored an article in the Fall edition of the Arkansas Oil Marketers Association publication, The Canopy, titled:

Arkansas Motor Fuel Supply Agreements: Documenting the Jobber/Retailer Relationship (“Article”).

The Article discusses the importance of the jobber/retailer relationship and the various forms it can take. A particular focus of the Article is:

• Need to ensure that the jobber relationship with the retailer is adequately documented for purposes of demonstrating commitment between the parties.
• The care that must be taken to not trigger liability by interfering with a third-party preexisting jobber/retailer relationship.

There is also a recognition of certain realities such as:

• Jobbers sometimes use retailers with limited experience.
• Operating retail facilities can require a significant financial investment by both the jobber and retailer.
• Doing business with motor fuel retailers that have a less than stellar credit history is a fact of life for many jobbers.
• Responsibilities in operating those facilities are varied.
• Difficulties may arise in allocating responsibilities between the parties and/or ensuring the responsible party fulfills the allocated obligation.
• A jobber’s perspective on pursuing particular terms or conditions in an agreement depends on competitive issues.

The Article addressed the following aspects of jobber/retailer motor fuel supply agreements:

• Retailer/Jobber Relationships.
  • Structure of the Relationship.
    • Straight Dealer.
    • Commission Agent.
    • Retail Level Consignee.
  • Branded/Unbranded.
• Key Components of the Supply Contract.
  • Parties.
  • Who are the Parties to the contract?
  • Is the retailer a viable entity?
  • Term/Duration.
  • Products Supplied.
  • Property Description/Location.
  • Branded/Unbranded.
  • Quantity.
  • Price – (cent(s) over net rack, rack plus cent(s), etc.).
  • Incentives/Rebates
  • Responsibility/Liability.
  • Storage Tanks and Related Equipment (i.e., pumps, dispensers, credit card readers).
  • Arkansas Petroleum Storage Tank Trust Fund.
  • Credit/UCC Financing.
  • Delivery Location/Risk of Loss.
  • Freight Charges.
  • Taxes.
  • Non-Performance.
  • Quantity/Quality.
  • Warranties/Representations.
  • Insurance.
  • Audit/Inspection.
  • Equipment Loan Provision.
  • Assignment.
  • Waiver.
  • Indemnity.
  • Compliance with Law (catchall for other governmental requirements).
  • Government Price Regulation.
  • Security Agreement/Financing
  • Notices.
  • Termination/Non-renewal Provisions.
  • Modification of Agreement.
  • Entire Agreement/Integration.
  • Prior Agreements.
• Interference with an Existing Motor Fuel Supply Contracts/Risks?

A copy of the Article can be downloaded here.