§ 818.504. Termination, cancellation, nonrenewal and alteration of dealership by manufacturer
Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 63 P.S. Professions and Occupations (State Licensed)Effective: October 24, 2019
Effective: October 24, 2019
63 P.S. § 818.504
§ 818.504. Termination, cancellation, nonrenewal and alteration of dealership by manufacturer
(a) General rule.--A manufacturer or distributor, directly or through an authorized officer, agent or employee, may terminate, cancel or fail to renew a manufacturer/dealer agreement with just cause. Section 5061 shall not apply to this section.
(b) Burden of proof.--The manufacturer or distributor has the burden of showing just cause for terminating, canceling or failing to renew a manufacturer/dealer agreement with a dealer. For purposes of determining whether there is just cause for the proposed action, any of the following factors may be considered:
(c) Written notice required.--Except as otherwise provided in this section, a manufacturer or distributor shall provide a dealer with at least 90 days' prior written notice of termination, cancellation or nonrenewal of the manufacturer/dealer agreement in the event the dealer is being terminated for just cause. The following shall apply:
(1) The notice shall state all reasons for the proposed termination, cancellation or nonrenewal and shall state that, within 30 days following receipt of the notice, the dealer shall provide to the manufacturer or distributor written notice of intent to cure all claimed deficiencies. The dealer shall have 90 days following receipt of the original notice to rectify the deficiencies.
(2) If the deficiencies are rectified within 90 days, the manufacturer's or distributor's notice shall be voided. If the dealer fails to provide the notice of intent to cure the deficiencies in the prescribed time period or fails to cure the deficiencies in the time period provided, the termination, cancellation or nonrenewal shall take effect 30 days after the dealer's receipt of the original notice. If the dealer has new and untitled inventory on hand, it may be sold under section 506.
Credits
1983, Dec. 22, P.L. 306, No. 84, § 504 [63 P.S. § 818.504], added 2018, Oct. 24, P.L. 816, No. 134, § 21, effective in 365 days [Oct. 24, 2019].
Footnotes
63 P.S. § 818.506.
63 P.S. § 818.504, PA ST 63 P.S. § 818.504
Current through Act 10 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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