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What are the key facts of the case? You need to identify these facts before answering the following questions. Did Texxon treat the owner of

What are the key facts of the case? You need to identify these facts before answering the following questions.

Did Texxon treat the owner of the gas station ethically? Explain your answer.

What mistakes did the owner, Ron Kile, make to justify Texxon's decision regarding the gas station?

Do you generally agree with Texxon or Ron Kile? Justify your answer.

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3 MPSI Study of the Impact of Closing MD-73 Petroleum Marketing Practices Act (PMPA), 3 Texxon began to document a case that would justify the termination of Kile's franchise prior to abandonment. Whether or not it was Texxon's intention to circumvent Kile's purchase rights under PMPA, the fact remains that it was clearly not in Texxon's interest to have the MD-73 site remain a gas station after taking down the Texxon sign. Accordingly, on July 30, 1996, Texxon advised Kile that his franchise relationship 3 The act states that if a determination is made by the franchiser "in good faith and in the normal course of business ... to convert the leased premises to a use other than the sale or distribution of motor fuel ... or to sell the premises .... or to materially alter or replace the premises ... or if the renewal is likely to be uneconomical, the franchiser must first make a bona fide offer to sell, transfer or assign to the franchisee such franchiser's interests in such premises, or offer the franchisee the right of first refusal" 15 U.S.C. 2801, Section 102 D. was terminated and would not be renewed at the expiration of his lease on November 11, 1996. The grounds for termination involved such alleged infractions as failure to remain open for the full number of hours specified in the agreement; failure by Kile to operate the premises in a clean, safe, and healthful manner; and finally, failure by Kile to exert good faith efforts to carry out the provisions of the franchise by virtue of his high-price, low-volume policy. In October 1996 Kile contracted for the sale of the business at MD-73. As part of this proposed sale, Kile was to assign the lease agreement for MD73 to the prospective purchaser. However, Texxon refused to consent to the proposed sale, transfer, and assignment on the ground that Kile had already been notified of Texxon's proposed termination. On January 15, 1997, Kile relinquished possession of MD73, and the station has been boarded up ever since

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