PRINTER'S NO. 1898
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1346
Session of
2015
INTRODUCED BY P. DALEY, McNEILL, YOUNGBLOOD, THOMAS AND COHEN,
JUNE 24, 2015
REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, JUNE 24, 2015
AN ACT
Amending Titles 12 (Commerce and Trade) and 42 (Judiciary and
Judicial Procedure) of the Pennsylvania Consolidated
Statutes, providing for fair franchises; and, in limitation
of time, further providing for one year limitation and for
four year limitation.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 12 of the Pennsylvania Consolidated
Statutes is amended by adding a chapter to read:
CHAPTER 55
FAIR FRANCHISES
Sec.
5501. Short title of chapter.
5502. Declaration of policy.
550 3. Definitions.
5504. Applicability.
5505. Termination and opportunity to cure.
5506. Renewal of the franchise and notice.
5507. Unfair acts and practices.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
5508. Transfer.
5509. Termination.
5510. Good faith and fair dealing.
5511. Indemnification.
5512. Enforcement.
5513. Mediation and actions.
5514. Void provisions.
5515. Construction.
§ 5501. Short title of chapter.
This act shall be known and may be cited as the Fair
Franchise Act.
§ 5502. Declaration of policy.
(a) Declarations.--The General Assembly finds and declares
as follows:
(1) Franchise businesses represent a large and growing
segment of this Commonwealth's retail and service businesses
and are rapidly replacing more traditional forms of small
business ownership in this Commonwealth.
(2) Franchise businesses involve a joint enterprise
between the franchisor and franchisee in which each party has
a vested interest and equity in the franchised business.
(3) Most prospective franchisees lack bargaining power
and generally invest substantial amounts to obtain a
franchise business when they are unfamiliar with operating a
business, with the business being franchised and with
industry practices in franchising.
(4) Many franchises reflect a profound imbalance of
contractual power in favor of the franchisor, and fail to
give due regard to the legitimate business interests of the
franchisee, as a result of the franchisor reserving pervasive
20150HB1346PN1898 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
contractual rights over the franchise relationship.
(5) Franchisees may suffer substantial financial losses
when the franchisor does not act in good faith in the
performance of the franchise agreement.
(6) Traditional common law doctrines have not evolved
sufficiently to protect franchisees adequately from
fraudulent or unfair practices in the sale and operation of
franchise businesses and significant contractual and
procedural restrictions have denied franchisees adequate
legal recourse to protect the franchisees' interests in the
businesses.
(7) A franchisee's freedom to contract is greatly
limited by the disparity of bargaining power and lack of
consistent legal standards and other factors. This act is
necessary to restore freedom to contract and to remove
restrictive barriers impeding entry into industries and
markets dominated by franchise systems.
(b) Purposes.--The underlying purposes and policies of this
chapter are as follows:
(1) To promote the compelling interest of the public in
fair business relations between franchisees and franchisors.
(2) To protect franchisees against unfair treatment by
franchisors, who inherently have superior economic power and
superior bargaining power in the negotiation of the business.
(3) To provide franchisees with rights and remedies in
addition to those existing by contract or common law.
(4) To govern franchise agreements, including any
renewals or amendments, to the full extent consistent with
the Constitution of the United States and the Constitution of
Pennsylvania.
20150HB1346PN1898 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
§ 550 3. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Affiliate." An entity controlled by, controlling or under
common control with another entity.
"Franchise." As follows:
(1) Any of the following:
(i) An express or implied agreement between a
franchisor and a franchisee, whether oral or written,
which includes all the following:
(A) The franchisee is granted the right to
offer, sell or distribute goods or services under a
marketing plan or system prescribed or suggested in
substantial part by the franchisor.
(B) The operation of the business is allowed to
be substantially associated with a trademark, service
mark, trade name, logotype, advertising or other
commercial symbol owned, controlled or used by the
franchisor.
(C) The franchisee is required to pay a
franchise fee.
(ii) An area franchise.
(iii) A subfranchise.
(iv) A commercial relationship entered into in
reasonable reliance on representations of the criteria of
subparagraph (i).
(v) A commercial relationship explicitly referred to
as a franchise by the seller.
(2) The term does not include any of the following:
20150HB1346PN1898 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(i) a nonprofit organization operated on a
cooperative basis by and for independent retailers which
wholesales goods and services primarily to the
organization's member retailers and to which all of the
following apply:
(A) Each member has substantially the same
control and ownership of the cooperative control and
ownership is apportioned by number of retail units
owned.
(B) Only persons that will avail themselves of
the services furnished by the organization may be
members.
(C) Transfer of ownership is prohibited or
limited.
(D) Capital investment receives no return.
(E) Benefits to members are made on the basis of
patronage of the cooperative or on the basis of
retail units owned.
(F) A member is not personally liable for
obligations of the organization in the absence of a
direct undertaking or authorization by the member.
(G) Services of the organization are furnished
primarily for the use of a member.
(H) No part of the receipts, income or profit of
the organization is paid to a for-profit entity. This
subparagraph does not include an arms-length payment
for necessary goods and services.
(I) A member is not required to purchase goods
or services from a designated for-profit entity other
than an approved supplier selected on an objective
20150HB1346PN1898 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
basis.
(ii) A contract regulated by the Petroleum Marketing
Practices Act (Public Law 95-297, 15 U.S.C. § 2801 et
seq.).
(iii) A contract or business relationship between a
contractor and an automobile club that is a corporation
not-for-profit and that:
(A) directs or refers the automobile club's
members and other customers to the contractor for
roadside assistance, auto battery, auto repair, auto
body repair or other motor vehicle-related services;
or
(B) authorizes the contractor to display the
automobile club's trademark, service mark or other
commercial symbol as an indication of the
contractor's affiliation with the automobile club.
(3) The term does not apply to distribution agreements
under section 431 of the act of April 12, 1951 (P.L.90,
No.21), known as the Liquor Code.
"Franchisee." A person who is granted a franchise.
"Franchisor." A person who grants a franchise.
"Good faith." Honesty in fact and the observance of
commercial standards of fair dealing.
"Person." An individual, a corporation, a partnership, a
limited liability company, a joint venture, an association, a
joint stock company, a trust or an unincorporated organization.
"Required payment." All consideration that the franchisee
must pay to the franchisor or an affiliate, either by contract
or by practical necessity, as a condition of obtaining,
commencing operation, continuing in, reinstating or renewing a
20150HB1346PN1898 - 6 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
franchise. The term does not include payments for the purchase
of reasonable amounts of inventory at bona fide wholesale prices
for resale or lease.
§ 5504. Applicability.
A person who engages directly or indirectly in contracts in
this Commonwealth in connection with the offering or advertising
for sale or has business dealings with respect to franchises in
this Commonwealth shall be subject to this chapter and shall be
subject to the jurisdiction of the courts of this Commonwealth,
upon service of process.
§ 5505. Termination and opportunity to cure.
(a) Termination.--A franchisor may not, directly or through
an officer, agent or employee, terminate or cancel a franchise,
or substantially change the competitive circumstances of a
franchise agreement except for good cause shown.
(b) Good cause required.--Good cause shall be based upon a
legitimate business reason, which shall include the franchisee's
refusal or failure to comply with any express obligation of the
franchise agreement. The franchisor shall have the burden of
proving good cause.
(c) Defaults.--A default under one franchise agreement may
not solely constitute a default under another franchise
agreement to which the franchisee or an affiliate of the
franchisee is a party.
(d) Notice.--Except as provided in subsection (e), prior to
termination or cancellation of the franchise, the franchisor
shall give the franchisee written notice at least 45 days in
advance of the termination and the written notice shall be in
accordance with the following:
(1) The notice shall state all of the reasons
20150HB1346PN1898 - 7 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
constituting good cause for termination or cancellation.
(2) The notice shall provide that the franchisee has 30
days in which to rectify any claimed discrepancy.
(e) Exceptions.--The following time frames for written
notice shall apply:
(1) Notice of immediate termination may be given if a
franchisee is convicted in a court of competent jurisdiction
of an offense:
(i) punishable by a term of imprisonment in excess
of one year;
(ii) directly related to the business conduct of the
franchise;
(iii) materially impairing the goodwill value of the
franchise or the franchised trademark mark; and
(iv) no longer appealable.
(2) Notice may be given at any time following the date
on which the conviction under paragraph (1) is no longer
appealable and shall be effective upon delivery and written
receipt of the notice.
(3) A franchisor may not collect a financial penalty or
fee as a consequence of the conviction.
(4) Following immediate written notice, 24 hours shall
be given from receipt of the notice if the reason for
termination or cancellation is a violation of a law,
regulation or standard relating to an imminent danger to
public health or safety. The franchisee may cure the
violation in that 24-hour period.
(5) Following written notice, if the reason for
termination or cancellation is nonpayment of money due under
the franchise agreement, the franchisee shall be entitled to
20150HB1346PN1898 - 8 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
10 days to cure the default. A franchisee has the right to
cure three times in any 12-month period during the agreement.
(6) Fifteen days notice shall be required if the reason
for termination is voluntary abandonment by the franchisee of
the franchise relationship.
(f) Termination by franchisee.--A franchisee may terminate a
franchise agreement for good cause shown, without penalty or
fees. Good cause shall include changes to the franchise system
or the competitive circumstances of the franchise agreement
created or expressly required by the franchisor which would
cause substantial negative impact or substantial financial
hardship to the franchisee in the operation of the franchise.
§ 5506. Renewal of the franchise and notice.
(a) Good cause required.--A franchisor may not, directly or
through an officer, agent or employee, fail to renew a
franchise, except for good cause shown.
(b) Legitimate business reasons.--Good cause shall be based
upon a legitimate business reason, which shall include the
franchisee's refusal or failure to comply substantially with any
material, reasonable and reasonably necessary express obligation
of the franchise agreement, including repeated and intentional
nonpayment of royalties, advertising or marketing fees clearly
required by the franchise agreement.
(c) Good faith required.--The franchisor is obligated to act
in good faith and in accordance with the following:
(1) A franchisor may not refuse to renew a franchise for
an arbitrary or capricious reason or for the financial gain
of the franchisor or any affiliate of the franchisor.
(2) A duty of good faith shall obligate a party to a
franchise to:
20150HB1346PN1898 - 9 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(i) do nothing that will have the effect of
destroying or injuring the right of the other party to
obtain and receive the expected fruits of the contract;
and
(ii) do everything required under the contract to
accomplish that purpose.
(d) Notice.--Before nonrenewal of the franchise, the
franchisor shall give the franchisee written notice at least 90
days in advance of the nonrenewal. The notice shall state all of
the reasons constituting good cause for the nonrenewal and shall
advise that the franchisee has 60 days in which to rectify any
claimed discrepancy and reinstate the franchisee's right to
renew the franchise.
§ 5507. Unfair acts and practices.
(a) Violation.-- A violation of a provision of this chapter
shall constitute an unfair method of competition and unfair or
deceptive act or practice within the meaning of section 2(4) of
the act of December 17, 1968 (P.L.1224, No.387), known as the
Unfair Trade Practices and Consumer Protection Law, and shall be
subject to the enforcement provisions, civil penalties and
private rights of action contained in the Unfair Trade Practices
and Consumer Protection Law.
(b) Prohibited acts.--A franchisor may not directly or
indirectly do any of the following through an affiliate,
officer, agent or employee:
(1) Restrict a franchisee from associating with other
franchisees or from joining, leading or otherwise
participating in a trade or other association or retaliate
against a franchisee for engaging in the activity.
(2) Require or prohibit a change in management of a
20150HB1346PN1898 - 10 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
franchise unless the requirement or prohibition of the change
is for good cause, which must be stated in writing by the
franchisor and be based on violations of material express
provisions of the franchise agreement. Good cause shall
include requiring that management of the franchise is
conducted by personnel who have been trained in the manner
required of each franchise manager in the system.
(3) (i) Impose on a franchise by a written or oral
contract, manual, policy, rule or regulation, a standard
of conduct or performance unless the franchisor, the
franchisor's agents or representatives sustain the burden
of proving the standard to be uniformly enforced and
applied throughout the franchisor's system of similarly
situated franchisees, franchisor-owned units and
licensees in substantially the same manner.
(ii) Notwithstanding subparagraph (i), it shall not
be a violation of this chapter for a franchisor to
provide forbearance to a franchisee as a means of
assistance to the franchisee in performing the
franchisee's obligations under the franchise agreement or
in operating the franchisee's franchise in exigent
circumstances.
(4) Fail to deal fairly and in good faith with a
franchisee or an association or other aggregation or
incorporation of franchisees in any matter, including,
without limitation, transfer of the franchise, administration
of advertising funds, rewards programs, marketing funds and
the interpretation, administration and performance of
franchise and area development or territory agreements.
(5) Sell, rent or offer to sell to a franchisee a
20150HB1346PN1898 - 11 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
product or service for more than a fair and reasonable price
or without the reasonable expectation that the sale or rental
of the product will promote the profitability of the
franchisee's business.
(6) (i) Discriminate between franchises in the charges
offered or made for royalties, goods, services,
equipment, rentals, advertising services or in any other
business dealing, unless each of the following apply:
(A) The discrimination between franchisees would
be necessary to allow a particular franchisee to
fairly meet competition in the open market.
(B) The discrimination does not adversely affect
the business of an existing franchisee.
(C) To the extent that the franchisor satisfies
the burden of proving that a classification of or
discrimination between franchisees is reasonable, the
discrimination is based on franchises granted at
materially different times, is reasonably related to
the difference in time or on other proper and
justifiable distinctions and is not arbitrary or
intended to be for the benefit of the franchisor at
the expense of a franchisee.
(ii) Nothing under this paragraph shall be construed
as granting to a franchisor a right which may be limited
by a Federal or State statute.
(7) Notify the franchisee of a claimed breach of
franchise agreement for good cause not later than 180 days
from the date good cause arises or not later than 180 days
after the franchisor knew or in the exercise of reasonable
care should have known of the claimed good cause.
20150HB1346PN1898 - 12 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(8) Fail to make readily available to a franchisee,
without charge, true, accurate and complete copies of each
record of marketing, rewards program, advertising fund and
fee that has been paid by a franchisee, vendor, supplier and
licensee.
(9) Coerce a franchisee to assent to a release,
assignment, novation, waiver or estoppel which would
prospectively relieve a person from liability imposed by this
chapter.
(10) Require or demand that a franchisee pay liquidated
or other post termination damages in excess of the average
monthly royalty fees paid by the franchisee during the prior
12-calendar months or a shorter time that a franchised
location has been in the system, multiplied by the lesser of
six months or the number of months remaining in the term of
the franchise agreement.
(11) Engage in an act prohibited under this chapter,
directly or indirectly through an affiliate or agent on the
part of the franchisor or an affiliate of the franchisor.
(12) Require or demand that a franchisee pay the legal
fees and related expenses of the franchisor or an affiliate
of the franchisor in a dispute or proceeding, by contract or
otherwise, unless the franchisor is the prevailing party. A
provision in a contract in violation of this paragraph shall
be void.
§ 5508. Transfer.
(a) General rule.--A franchisee may not transfer, assign or
sell a franchise or interest in a franchise unless the
franchisor is notified in writing of the following:
(1) The prospective transferee or buyer's name and
20150HB1346PN1898 - 13 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
address.
(2) A statement of financial qualification and business
experience during the previous five years.
(b) Approval or denial.--
(1) A franchisor must, within 30 days after receipt of
the notice under subsection (a), do one of the following:
(i) Provide written approval to the franchisee for
the transfer, assignment or sale to the proposed
transferee.
(ii) Deny the proposed transferee or buyer and
provide material reasons relating to the character,
financial ability or business experience of the proposed
transferee or buyer.
(2) If the franchisor does not reply within the 30-day
period under paragraph (1), the franchisor's approval shall
be deemed to be granted.
(c) Agreement to requirements.--A transfer, assignment or
sale may not be valid unless the transferee agrees in writing to
comply with each of the requirements of the franchise then in
effect.
(d) Fees.--A fee imposed by the franchisor as a condition of
the transfer shall be limited to the franchisor's reasonable
out-of-pocket expenses incurred in reviewing and approving the
transfer.
(e) Violation.--It shall be a violation of this chapter for
a franchisor to prohibit or interfere with:
(1) The transfer of a franchise and the rights of a
franchisee to a qualified purchaser, including a family
member or business partner directly or by imposing
unreasonable stipulations or penalties on a transfer.
20150HB1346PN1898 - 14 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(2) The transfer by will or other lawful probate or
similar procedure of a franchise and the rights of a
franchisee.
§ 5509. Termination.
(a) Compensation.--Upon termination of a franchise, the
following shall apply:
(1) Except as provided under subsection (b), the
franchisor must fairly compensate the franchisee or
franchisee's estate for the fair market value at the time of
termination for the following:
(i) The franchise.
(ii) The franchisee's inventory, supplies, equipment
and furnishings purchased by the franchisee from the
franchisor or the franchisor's approved sources.
(iii) The fair market value of good will, if any,
except for personalized items which have no value to the
franchisor and inventory, supplies, equipment and
furnishings not reasonably required in the conduct of the
franchise business.
(2) A franchisor may offset against amounts owed to a
franchisee under this subsection any amount mutually agreed
upon and owed by the franchisee to the franchisor which is
not the subject of a good faith dispute by the franchisee.
(b) Limitations.--
(1) Subsection (a) shall not apply to the following:
(i) Voluntary relinquishment or abandonment of the
franchise by the franchisee.
(ii) Expiration of the franchise agreement if the
franchisee does not elect to renew.
(2) Compensation of the good will of the franchisee
20150HB1346PN1898 - 15 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
shall not be required to be made to a franchisee if the
franchisor agrees in writing not to enforce a covenant which
restrains the franchisee from competing with the franchisor
in the same or substantially similar business in the same or
substantially similar manner at the same location using the
same property except the franchisor's registered trademark or
trade name.
(c) Construction.--This section shall not be construed to
permit the termination or nonrenewal of a franchise agreement
except in accordance with the express terms of the franchise
agreement and this chapter.
§ 5510. Good faith and fair dealing.
Each franchisor shall owe a duty of good faith, as described
under section 5506(c) (relating to renewal of the franchise and
notice), and fair dealing to each franchisee.
§ 5511. Indemnification.
(a) Duty.--A franchisor must indemnify and hold harmless a
franchisee from financial loss and expense, including legal fees
and costs, arising out of a claim, demand, suit or judgment by
reason of a defect in merchandise, methods or procedures
prescribed by the franchisor and required to be performed by the
franchisee, except for the negligent act or willful misconduct
of the franchisee which causes the loss or expense.
(b) Liability.--A franchisee, franchisee association or
cooperative of franchisees shall not be liable for the
negligence or misconduct of a supplier or distributor of
products or services prescribed by the franchisor or for the
failure of a product or service prescribed by the franchisor
which is not fit for the particular purpose for which the
product or service was prescribed or any related purpose. A
20150HB1346PN1898 - 16 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
contractual provision in contradiction with this subsection
shall be void as against public policy.
§ 5512. Enforcement.
(a) Action.--If a franchisor violates a provision of this
chapter a franchisee may bring an action against the franchisor
in a court of competent jurisdiction of this Commonwealth for
any of the following:
(1) Damages sustained by the franchisee as a consequence
of the franchisor's violation.
(2) The actual costs of the action, including
reasonable, actual attorney fees.
(3) Injunctive relief against unlawful termination,
cancellation or nonrenewal.
(b) Governance and jurisdiction.--Notwithstanding a term or
provision of a franchise agreement to the contrary, the
following shall apply:
(1) The laws of this Commonwealth shall govern the
interpretation of the franchise agreement of a franchise
located in this Commonwealth and the performance of the
parties.
(2) The Federal courts with jurisdiction over cases
filed in a district in this Commonwealth and courts of this
Commonwealth shall have exclusive jurisdiction with respect
to an action brought under this chapter or an action brought
by a franchisor concerning a franchise located in this
Commonwealth.
(c) Attorney General.--On the written request of a
franchisor or a franchisee, the Attorney General may enforce
compliance with this chapter .
§ 5513. Mediation and actions.
20150HB1346PN1898 - 17 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(a) Mediation.--A clause or provision in a franchise
agreement requiring the parties to submit to nonbinding
mediation as a precondition to litigation or arbitration shall
be enforceable only if the mediation is conducted at a location
within this Commonwealth and reasonably convenient to the
franchisee.
(b) Actions.--Nothing in a franchise agreement may deprive a
franchisee from participating as member of a class action or in
a consolidated action .
§ 5514. Void provisions.
A provision in a franchise agreement which requires a party
to the agreement to commence an action within a shorter period
than allowed under 42 Pa.C.S. §§ 5523 (relating to one year
limitation) and 5525 (relating to four year limitation) shall be
void as against public policy.
§ 5515. Construction.
(a) Liberal construction.--This chapter shall be liberally
construed and applied to promote the chapter's underlying
remedial purposes and policies.
(b) Effect.--The effect of this chapter may not be varied or
waived by contract or agreement. A contract or agreement
purporting to vary or waive the effect of this chapter shall be
void and unenforceable to that extent only.
Section 2. Sections 5523 and 5525 of Title 42 are amended to
read:
§ 5523. One year limitation.
The following actions and proceedings must be commenced
within one year:
(1) An action for libel, slander or invasion of privacy.
(2) An action upon a bond given as security by a party
20150HB1346PN1898 - 18 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
in any matter, except a bond given by a condemnor in an
eminent domain proceeding.
(3) An action upon any payment or performance bond.
(4) An action under 12 Pa.C.S. Ch. 55 (relating to fair
franchises) accruing during the pendency of a civil, criminal
or administrative proceeding against a person brought by the
United States or any Federal agency under a Federal act or
brought by the Commonwealth or any of the Commonwealth's
political subdivisions under the laws of this Commonwealth
related to antitrust laws or to franchising, the action must
be commenced within one year after the final disposition of
the civil, criminal or administrative proceeding.
§ 5525. Four year limitation.
(a) General rule.--Except as provided for in subsection (b),
the following actions and proceedings must be commenced within
four years:
(1) An action upon a contract, under seal or otherwise,
for the sale, construction or furnishing of tangible personal
property or fixtures.
(2) Any action subject to 13 Pa.C.S. § 2725 (relating to
statute of limitations in contracts for sale).
(3) An action upon an express contract not founded upon
an instrument in writing.
(4) An action upon a contract implied in law, except an
action subject to another limitation specified in this
subchapter.
(5) An action upon a judgment or decree of any court of
the United States or of any state.
(6) An action upon any official bond of a public
official, officer or employee.
20150HB1346PN1898 - 19 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(7) An action upon a negotiable or nonnegotiable bond,
note or other similar instrument in writing. Where such an
instrument is payable upon demand, the time within which an
action on it must be commenced shall be computed from the
later of either demand or any payment of principal of or
interest on the instrument.
(8) An action upon a contract, obligation or liability
founded upon a writing not specified in paragraph (7), under
seal or otherwise, except an action subject to another
limitation specified in this subchapter.
(9) An action arising out of 12 Pa.C.S. Ch. 55 (relating
to fair franchises), except as provided under section 5523
(relating to one year limitation).
(b) Special provisions.--
(1) An action subject to section 8315 (relating to
damages in actions for identity theft) must be commenced
within four years of the date of the offense or four years
from the date of the discovery of the identity theft by the
plaintiff.
(2) If a person liable under 12 Pa.C.S. Ch. 55
fraudulently conceals the cause of action from the knowledge
of the person entitled to bring the action, the period prior
to the discovery of the cause of action by the person
entitled to bring the cause of action shall be excluded in
determining the time limit for the commencement of the
action.
Section 3. This act shall apply to contracts entered into or
renewed on or after the effective date of the addition of 12
Pa.C.S. Ch. 55.
Section 4. This act shall take effect in 60 days.
20150HB1346PN1898 - 20 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30