Section 818.313 - Industry reorganization(a)Violation.-- (1) It shall be a violation of this chapter for a manufacturer or distributor directly or indirectly or through any officer, agent or employee to terminate or fail to renew a franchise of a new vehicle dealer in connection with: (i) any change in ownership or control of all or any part of the manufacturer's or distributor's business whether by sale or transfer of assets, corporate stock or other equity interest; assignment; merger; consolidation; combination; joint venture; redemption; operation of law; or otherwise; or(ii) the termination, suspension or cessation of all or any part of the manufacturer's or distributor's business operations except for a termination of a part of the manufacturer's or distributor's business operations throughout the United States that is not otherwise part of any change in ownership or control of the manufacturer's or distributor's business.(2) Paragraph (1) shall not apply if:(i) a manufacturer or distributor offers a dealer a replacement franchise with reasonable terms or conditions; or(ii) the manufacturer or distributor, within 90 days of the effective date of the termination or failure to renew, compensates the dealer in an amount at least equivalent to the higher of the fair market value of the franchise or portion of the franchise terminated or failed to be renewed on the date the manufacturer or distributor announces the act that results in the termination or nonrenewal of the franchise or the date on which the notice of termination or nonrenewal of the franchise is issued.(3) If the manufacturer or distributor either or both: (i) authorizes the dealer to continue servicing and supplying parts, including warranty service and parts, for any goods or services marketed by the dealer pursuant to the franchise for a period of not less than five years from the effective date of the termination or failure to renew and continues to reimburse the dealer for warranty parts and service at the same prices and terms as franchised dealers for the manufacturer or distributor;(ii) continues to supply the dealer with replacement parts for any goods or services marketed by the dealer pursuant to the franchise for a period of not less than five years from the effective date of the termination or failure to renew at the same prices and terms as franchised dealers for the manufacturer or distributor; and if a dealer chooses to continue either or both such parts and service operation under subparagraph (i) or (ii), the fair market value compensation of the franchise shall be reduced to reflect the value of continuing either or both such parts and service operation.(b)Acts affecting franchise.--For purposes of subsection (a), the termination or discontinuation of a series, line, brand or class of new vehicle marketed by a manufacturer or distributor as a distinct series, line, brand or class shall be deemed to be the termination or nonrenewal of a franchise even if said series, line, brand or class of new vehicle is part of a franchise including other series, lines, brands or classes of new vehicle, provided that nothing in this subsection shall be construed as prohibiting a manufacturer or distributor from changing, adding or deleting models, specifications, model names, numbers or identifying marks or similar characteristics of the new vehicles it markets, provided that such change, addition or deletion does not result in the termination or discontinuance of a distinct series, line, brand or class of new vehicle.(c) Disputes.--Any dispute arising between a manufacturer or distributor and a dealer under this section involving the determination of the fair market valuation of a franchise shall be determined by a court of competent jurisdiction and not by the board. (d) Exemption.--This section shall not apply to motorcycle or 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, §9.1 [ 63 P.S. § 818.9a], added 1991, Dec. 20, P.L. 387, No. 41, § 5, effective in 60 days. Renumbered as § 14 [63 P.S. § 818.14] and amended 1996 , April 19, P.L. 104, No. 27, § 10, effective in 60 days.This section is set out twice. See also § 818.14, effective until 10/24/2019.