An evaluation was conducted of the effects of several state-level “Dealer Day in Court” laws designed to protect franchisee-dealers from unfair terminations by the major oil companies. The results suggest that these laws were somewhat effective at slowing the decline in the number of dealer-operated stations during the 1970s, but that competition and efficiency in gasoline retailing were not significantly impacted. Market forces favoring vertical integration and new forms of competition in gasoline retailing apparently reduced the influence of these laws.
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