Section 17.211. Effect of nonregistration on enforceability of contracts

(a) An entity which has failed to register a fictitious name as required by § 17.203 (relating to voluntary and mandatory registration) is not permitted by 54 Pa.C.S. § 331(b) (relating to contracts entered into by entity using unregistered fictitious name) to maintain an action in a tribunal of this Commonwealth until the entity has complied with this subchapter. An action may not be maintained in a tribunal of this Commonwealth by a successor or assignee of the entity on a right, claim or demand arising out of a transaction with respect to which the entity used the fictitious name until the entity, or an entity which has acquired all or substantially all of its assets, has complied with this subchapter. The failure of an entity to register a fictitious name as required by § 17.203 does not impair the validity of a contract or act of the entity and does not prevent the entity from defending an action in a tribunal of this Commonwealth.

(b) Before an entity may institute an action in a tribunal of this Commonwealth on a cause of action arising out of a transaction in respect to which the entity used a fictitious name prior to the date of the registration of the fictitious name, or after the date its registration under this subchapter was cancelled or otherwise terminated as to the entity, the entity is required by 54 Pa.C.S. § 331(b) to pay to the Department for the use of the Commonwealth a civil penalty of $500.

(c) The penalties of subsections (a) and (b) are not applicable if there has been substantial compliance in good faith with this subchapter or the corresponding provisions of prior law.

The provisions of this § 17.211 adopted April 17, 1992, effective April 18, 1992, 22 Pa.B. 1993.

Notation

Cross References

This section cited in 19 Pa. Code § 17.212 (relating to effect of registration).