Fornaris v. Ridge Tool Co.

In 1964 by Act No. 75, the Legislature of Puerto Rico enacted the Dealer’s Contract Law which in effect provides that a Puerto Rican dealer’s contract with a manufacturer, regardless of any provisions for termination, is renewable indefinitely at the option of the local dealer unless the manufacturer has “just cause” to terminate. Section (d) defines “just cause” as “nonperformance of any of the essential obligations of the dealer’s contract, on the part of the dealer, or any action or omission on his part that adversely and substantially affects the interests of the principal or grantor in…