On this page
Does Law 75 cover the relationship?
The reviewed Spanish consolidation includes real responsibility for distributing goods or providing services by concession or franchise in the Puerto Rico market. What the partner actually does matters more than the agreement’s label. Not every franchise, distributor or service partner is automatically a protected dealer.
Consider who develops customers, holds stock, hires people, provides service and invests locally. Those facts help establish the relationship to which the proposed change would apply.
What changes when you reclaim an account?
Article 2 addresses termination, impairment and nonrenewal without just cause, even where the contract reserves unilateral exit. Article 2A contains specific impairment presumptions and qualifications. These provisions do not make every change unlawful, but an expiry date alone does not settle the question.
Fictional example: an industrial-maintenance partner develops customers and employs technicians. After two years the brand wants its largest account back. Before reallocating it, establish who won and supported the customer, the reserved-account terms, investment, performance concerns and the exact proposed change. This example establishes neither protected status nor damages.
Review the agreement and proposed notice against that history, including any opportunity to correct performance. Statutory damages factors are not an automatic refund or a reliable damages forecast.
Scope
- Based on the Spanish government consolidation revised 13 November 2020; the English explanation is not an official translation. Later amendments and controlling cases remain unchecked.
- Forum/arbitration wording must be assessed with applicable federal law; this does not invalidate every outside-Puerto-Rico arbitration clause.
- Federal franchise duties apply to territorial franchises subject to exemptions. Independent sales, company and staffing questions remain separate; Puerto Rico’s inside-customs-boundary status does not settle product duties or territorial taxes.
Next step
Assess the proposed account or exit change against the actual dealer relationship before sending a notice.
Sources & review notes
Puerto Rico Office of Management and Budget
Passage, dates and research notes
primary · Law 75-1964: Articles 1–4; 10 LPRA §§ 278–278c
excepto por justa causa
Official Spanish consolidated PDF, revised 13 November 2020, read in full in continuation batch. The text expressly includes services supplied by concession/franchise and regulates termination, impairment and nonrenewal. Current case-law tests, possible later amendments and federal arbitration/preemption questions remain unresolved; no automatic remedy or forum rule is asserted.
Federal Trade Commission
Passage, dates and research notes
primary · section-436.2
at least 14 calendar-days
Current eCFR displayed through 2026-11-09; eCFR is authoritative but not the official legal edition.
Federal Trade Commission
Passage, dates and research notes
primary · section-436.8
less than $735
Current eCFR displayed through 2026-11-09; eCFR is authoritative but not the official legal edition.
U.S. Customs and Border Protection
Passage, dates and research notes
primary · Definition: Customs territory of the United States
includes only the States, the District of Columbia, and Puerto Rico.
Current eCFR definition read. This geographical definition does not itself set a product duty, origin rule, quarantine condition, territorial levy or import process.
Detailed rule records (3)
The official consolidated Law 75 text defines a dealer relationship by actual Puerto Rico distribution/service responsibilities and addresses termination, impairment and nonrenewal without just cause. Contract labels and a fixed term do not alone resolve this workstream.
Ley de Contratos de Distribución16 CFR § 436.2 expressly addresses offers/sales of franchises to be located in the United States of America or its territories, subject to applicable federal exemptions. Territorial and transaction-specific analyses remain separate.
16 CFR §436.2: Federal disclosure timing 16 CFR §436.8: Federal franchise exemptions19 CFR § 101.1 includes only the states, District of Columbia and Puerto Rico within the U.S. customs territory. Do not apply a mainland import route or rate to another territory solely because it is U.S. territory.
19 CFR § 101.1: customs territory definitionKeep this reading in your learning library.
Progress privacy
Off by default. Without remembering, changes last on this page. If enabled, only public content identifiers and self-reported progress are stored in this browser profile. Anyone using the same profile could see them. No plan inputs or contact details are included. Reset or export in learning settings.
This is a reading aid, not evidence of disclosure delivery, expertise or legal approval.