Home Table of Contents

§ 818.505. Termination, cancellation, nonrenewal and alteration of dealership by dealer

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 63 P.S. Professions and Occupations (State Licensed)Effective: October 24, 2019

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 63 P.S. Professions and Occupations (State Licensed) (Refs & Annos)
Chapter 22A. Board of Vehicles Act (Refs & Annos)
Chapter 5. Recreational Vehicles (Refs & Annos)
Effective: October 24, 2019
63 P.S. § 818.505
§ 818.505. Termination, cancellation, nonrenewal and alteration of dealership by dealer
Currentness
(a) General rule.--A dealer may terminate or cancel its manufacturer/dealer agreement with a manufacturer or distributor with or without just cause by giving 30 days' written notice.
(1) If the termination or cancellation is for just cause, the notice shall state all reasons for the proposed termination or cancellation and shall state that if, within 30 days following receipt of the notice, the manufacturer or distributor provides to the dealer a written notice of intent to cure all claimed deficiencies, the manufacturer or distributor will then have 90 days following receipt of the original notice to rectify the deficiencies.
(2) If the deficiencies are rectified within 90 days, the dealer's notice shall be voided. If the manufacturer or distributor fails to provide the notice of intent to cure the deficiencies or fails to cure the deficiencies in the time period prescribed in the original notice, the termination or cancellation shall take effect as provided in the original notice.
(b) Just cause shown.--If the dealer terminates, cancels or fails to renew the manufacturer/dealer agreement without just cause, the provisions of section 506 shall not apply. If the dealer terminates, cancels or fails to renew the manufacturer/dealer agreement with just cause, the provisions of section 5061 shall apply. The dealer has the burden of showing just cause for the proposed termination, cancellation or nonrenewal action by a dealer due to any of the following just-cause factors:
(1) A manufacturer being convicted of or entering a plea of nolo contendere to a felony.
(2) The business operations of the manufacturer have been abandoned or closed for 10 consecutive business days, unless the closing is due to an act of God, strike, labor difficulty or other cause over which the manufacturer has no control.
(3) A significant misrepresentation by the manufacturer materially affecting the business relationship.
(4) A material violation of this chapter which is not cured within 30 days after written notice by the dealer.
(5) A declaration by the manufacturer of bankruptcy, insolvency or the occurrence of an assignment for the benefit of creditors or bankruptcy.

Credits

1983, Dec. 22, P.L. 306, No. 84, § 505 [63 P.S. § 818.505], added 2018, Oct. 24, P.L. 816, No. 134, § 21, effective in 365 days [Oct. 24, 2019].

Footnotes

1
63 P.S. § 818.506.
63 P.S. § 818.505, PA ST 63 P.S. § 818.505
Current through Act 10 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
End of Document