Home Table of Contents

§ 202-3. Cancellation, termination or failure to renew an agreement

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 73 P.S. Trade and Commerce

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 73 P.S. Trade and Commerce (Refs & Annos)
Chapter 4. Fair Trade and Business Practices (Refs & Annos)
Gasoline, Petroleum Products and Motor Vehicle Accessories
73 P.S. § 202-3
§ 202-3. Cancellation, termination or failure to renew an agreement
Currentness
(a) The lessor supplier shall not cancel, terminate or fail to renew an agreement unless it furnishes prior notification, pursuant to this subsection, to the other party. The notification shall be in writing and sent to the lessee dealer by certified mail not less than 90 days prior to the date on which the franchise will be cancelled, terminated or not renewed. The notification shall contain a statement of intention to cancel, terminate or not renew, together with the reasons therefor, which reasons shall be limited to those set forth in subsection (b) and the date on which such action shall take effect.
(b) It shall be a violation of this act for any lessor supplier to directly or indirectly terminate, cancel or fail to renew an agreement with the lessee dealer unless the termination, cancellation or failure to renew is for one of the following reasons:
(1) The lessee dealer has abandoned or has given notice of its intention to abandon the leased premises, in which event the requirement of 90 days' notice need not be given.
(2) The lessee dealer has filed for or has been declared bankrupt or has petitioned for a reorganization, creditor arrangement or insolvency under the applicable statutes.
(3) A dissolution of a partnership or corporation or other entity carrying on the business.
(4) The lessor supplier has lost its right to grant possession of the premises.
(5) Wilful or malicious destruction of the property of the lessor supplier by the lessee dealer or someone over whom he has control or should have exercised control.
(6) Failure to pay financial obligations to the lessor supplier when due including, but not limited to, rents or payment for gasoline, petroleum products or accessories supplied to the lessee dealer by the lessor supplier.
(7) Adulteration, commingling, or mislabeling or misbranding of products supplied by the lessor supplier.
(8) Failure by the lessee dealer to comply with Federal, State or local laws or regulations which are related to the operation of the gasoline service station business and which may affect the relationship between the lessor supplier and the lessee dealer and such failure to comply therewith has or may have an adverse effect on the lessor supplier.
(9) Conviction of the lessee dealer of a criminal offense which is related to the operation of the business or would effect the ability of the lessee dealer to operate the business or would tend to defame the reputation of the lessor supplier.
(c) Nothing in subsection (b) shall prohibit termination, cancellation or failure to renew:
(1) if there is a failure on the part of the lessor supplier and the lessee dealer to agree upon the terms of a renewal agreement where both parties have acted in good faith in trying to effect such a renewal;
(2) if there is a mutual termination executed by the parties; or
(3) where there is such cause for termination as a court of competent jurisdiction might find to be reasonable and just under all of the circumstances.
(d) In determining whether or not an agreement shall be terminated, cancelled or not renewed the failure or refusal of the lessee dealer to do any of the following shall not be grounds for such action:
(1) Refusal by the lessee dealer to take part in promotional campaigns of the lessor supplier's products.
(2) Failure by the lessee dealer to meet sales quotas suggested by the lessor supplier.
(3) Refusal by the lessee dealer to sell gasoline or other products at a price suggested by the lessor supplier.
(4) Refusal by the lessee dealer to keep the premises operating and open during those hours which are proven by the lessee dealer to be unprofitable.
(5) Refusal by the lessee dealer to give the lessor supplier financial records of the operation which are not related or necessary to the lessee dealer's obligations under the agreement.

Credits

1975, Nov. 26, P.L. 454, No. 126, § 3, effective in 90 days.
73 P.S. § 202-3, PA ST 73 P.S. § 202-3
Current through Act 10 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
End of Document