Section 818.312 - Termination of franchises(a)Terminations.--It shall be a violation of this chapter for any manufacturer or distributor, officer, agent or any representative whatsoever to unfairly, without due regard to the equities of said dealer and without just cause, terminate or fail to renew the franchise of any vehicle dealer; or being a manufacturer, to unfairly, without due regard to the equities of a distributor and without just cause, terminate or fail to renew the franchise of any distributor. The manufacturer or distributor shall not meet its burden of proof to terminate or fail to renew the franchise if the acts of the manufacturer or distributor, in whole or in significant part, caused the dealer or distributor to be unable to comply substantially with the reasonable and material requirements of the franchise.(b) Mutual agreement of termination filing.--All existing dealers' franchises shall continue in full force and operation under a newly appointed distributor on the termination of an existing distributor unless a mutual agreement of termination is filed with the board between the newly appointed distributor and such dealer.(c) Notification of termination.--Not less than 60 days advance notice of such termination or failure to renew shall be given the dealer or distributor prior to the effective date thereof unless the nature or character of the reason for termination or failure to renew is such that the giving of such notice would not be in the public interest. A copy of the notice shall also be provided to the board.(1) The 60-day notice period required by this subsection may be reduced to not less than 15 consecutive business days if the ground for termination or failure to renew is: (i) insolvency of the dealer or filing of any petition by or against the dealer under any bankruptcy or receivership law;(ii) failure of the dealer to conduct customary sales and service operations during business hours for seven consecutive business days, except in circumstances beyond the direct control of the dealer;(iii) conviction of the dealer, or any owner thereof, of any felony which is punishable by imprisonment;(iv) suspension or revocation of any license which the new vehicle dealer is required to have to operate a dealership; or(v) based on a determination that there was a fraudulent misrepresentation by the dealer to the manufacturer or distributor which is material to the franchise.(2) The 60-day notice period under this subsection is not required if the new vehicle dealer or distributor waives it voluntarily in writing.(d) Appeals.--At any time before the effective date of such termination or failure to renew, the dealer or distributor may appeal to the board for a hearing on the merits, and following due notice to all parties concerned, such hearing shall be promptly held. No such termination or failure to renew shall become effective until final determination of the issue by the board.(e) Burden of proof and just cause terminations on appeal.--In the event of a dealer or distributor appeal of the termination or failure to renew of its franchise, the burden of proof shall be on the manufacturer or distributor to show that such termination or failure to renew was for just cause. Any termination or failure to renew which is subject to section 313 shall not be subject to this subsection. (f)Exception.--This section shall not apply to recreational vehicle manufacturers, distributors or dealers.Amended and Renumbered by P.L. TBD 2018 No. 134, § 13, eff. 10/24/2019.1983, Dec. 22, P.L. 306, No. 84, §9 [ 63 P.S. § 818.9], effective 1/1/1984. Amended 1984 , June 8, P.L. 380, No. 78, § 2, retroactive effective 1/1/1984; 1991, Dec. 20, P.L. 387, No. 41, § 4, effective in 60 days. Renumbered as § 13 [63 P.S. § 818.13] and amended 1996 , April 19, P.L. 104, No. 27, § 7, effective in 60 days.