Code of Virginia § 46.2-1573.02. Limited right of dealers to sell new motor vehicles following termination of franchise.
209 words·~1 min read·
/va/title-46-2/chapter-15/46-2-1573-02·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Notwithstanding any provision of this title to the contrary, a motor vehicle dealer shall have the right, for 180 days following the termination of its franchise, to continue to sell and advertise as new any existing new motor vehicle inventory of the line-make of the terminated franchise, under the following circumstances:
1. The vehicle was acquired in the ordinary course of business as a new vehicle by a dealer franchised to sell that vehicle;
2. The franchise agreement of the dealer is terminated, canceled, or rejected by the manufacturer, factory branch, distributor, or distributor branch and the termination, cancellation, or rejection is not a result of the revocation of the dealer's license to operate as a dealer or the dealer's conviction of a crime; and
3. The vehicle was held in the inventory of the dealer on the date of the franchise agreement's termination.
This provision does not entitle a dealer whose franchise agreement has been terminated, canceled, or rejected to continue to perform warranty service repairs or continue to be eligible to offer or receive consumer or dealer incentives offered by the manufacturer, factory branch, distributor, or distributor branch, except as earned by the dealer prior to termination of the franchise agreement.
2010, cc. 284 , 318 .