Section 205-3 - Termination of dealer agreement(a) General provisions.--It shall be unlawful for a supplier to terminate, cancel or fail to renew a dealer agreement except as provided in subsection (b) or (c).(b) Exceptions.--A supplier may terminate, cancel or fail to renew a dealer agreement if a dealer: (1) Fails to consistently comply with essential and reasonable requirements imposed by the supplier.(2) Has transferred ownership interest in the dealership without the manufacturer's or distributor's consent.(3) Has filed a voluntary petition in bankruptcy or has had an involuntary petition in bankruptcy filed against it which has not been discharged within 30 days after the filing.(4) Has pleaded guilty or has been convicted of a crime, or has been determined to be engaged in an unfair business practice, as defined in other laws of this Commonwealth, the effect of which would be detrimental to the manufacturer, distributor or dealership.(5) Has failed to operate in a normal course of business for ten consecutive business days or has terminated or voluntarily abandoned said business.(6) Has relocated the dealer's place of business without the manufacturer's or distributor's consent.(7) Has defaulted under any chattel mortgage or other security agreement between the dealer and the supplier, or there has been a revocation or discontinuance of any guarantee of the dealer's present or future financial obligations to the supplier.(c) Other exceptions.--Subject to the provisions of this subsection, a supplier may terminate, cancel or fail to renew a dealer agreement under such conditions as may be provided for in the dealer agreement. When a dealer agreement is terminated or canceled or has failed to be renewed by the supplier under a condition provided for in the dealer agreement, other than a condition set forth in subsection (b), the supplier, upon written request of the dealer, shall pay to the dealer, or credit to the dealer's account if the dealer has outstanding any sums owing the supplier:(1) A sum equal to 100% of the net cost of all equipment that the dealer purchased from the supplier and not previously sold and put into regular use or service preceding notification by either party of intent to cancel, terminate or fail to renew the dealer agreement.(2) A sum equal to 100% of the current net price of repair parts, including superseded repair parts, previously purchased from the supplier and 75% of the current net price of specialized repair tools previously purchased pursuant to the requirements of the supplier and held by the dealer on the date of termination, cancellation or failure to renew the dealer agreement. In addition, the supplier shall pay the dealer, or credit to the dealer's account if the dealer has outstanding any sums owing the supplier, a sum equal to 5% of the current net price of all repair parts, excluding incoming freight cost, and specialized repair tools returned to the supplier to compensate the dealer for the inventory, packing and loading of the same to the supplier, provided that the supplier may perform such inventory, packing and loading in lieu of paying 5% to the dealer. Upon the payment or allowance of credit to the dealer's account, as applicable, in the sum required by this section, all of the dealer's title and interest in and to the equipment, repair parts and specialized repair tools shall pass to the supplier, and the supplier shall be entitled to the possession of the same. Payments or allowance of credit to the dealer, as applicable, required by this section shall be made no later than 90 days after such termination, cancellation or discontinuance or 60 days after the supplier's receipt of the equipment, repair parts or specialized repair tools.(3) In the event a dealer terminates a dealer agreement, the obligation of the supplier to repurchase equipment, repair parts and specialized repair tools shall be governed by the terms and conditions then in effect in the dealer agreement between the supplier and the dealer and not by the provisions of this act.(d) Burden of proof.--The supplier shall bear the burden of proof to establish that cancellation, termination or failure to renew was made for good cause as provided in this section.(e) Written notice required.--No supplier shall terminate, cancel or fail to renew, either directly or indirectly, through any officer, agent or employee, a dealer agreement for the reasons specified in subsection (b)(1) or (2) without giving the dealer at least 90 days' written notice setting forth the reasons for such termination, cancellation or failure to renew. A supplier may terminate, cancel or fail to renew a dealer agreement for the reasons specified in subsection (b)(3) through (7) effective immediately upon receipt of written notice from the supplier to the dealer setting forth such reasons.(f) Deficiencies may be cured.--Except for termination, cancellation or discontinuance for reasons set forth in subsection (b)(3) through (7), the supplier shall allow the dealer no less than 60 days to cure the deficiencies set forth in the notice required under subsection (e). Any such time provided to the dealer to cure deficiencies shall be calculated from the date of receipt of notice.1987, Dec. 18, P.L. 412, No. 86, § 3, imd. effective.