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.
Structure Code of Virginia
Chapter 15 - Motor Vehicle Dealers
§ 46.2-1501. General powers of Commissioner
§ 46.2-1503. Motor Vehicle Dealer Board
§ 46.2-1503.1. Board to employ Executive Director
§ 46.2-1503.2. State Personnel and Public Procurement Acts not applicable
§ 46.2-1503.3. Motor Vehicle Dealer Board Fund; receipts; disbursements
§ 46.2-1503.4. General powers and duties of Board
§ 46.2-1503.5. Biennial report
§ 46.2-1504. Board's powers with respect to hearings under this chapter
§ 46.2-1505. Suit to enjoin violations
§ 46.2-1506.1. Additional training
§ 46.2-1508. Licenses required; penalty
§ 46.2-1508.1. Licensure of certain nonprofit organizations
§ 46.2-1508.2. Display, parking, selling, advertising sale of certain used motor vehicles prohibited
§ 46.2-1509. Application for license or certificate of dealer registration
§ 46.2-1510. Dealers required to have established place of business
§ 46.2-1511. Dealer-operator to have certificate of qualification
§ 46.2-1512. Salesperson to have certificate of qualification
§ 46.2-1513. Continued operation on loss of a dealer-operator holding certificate of qualification
§ 46.2-1515. Location to be specified; display of license; change of location
§ 46.2-1516. Supplemental sales locations
§ 46.2-1517. Changes in form of ownership, make, name
§ 46.2-1518. Display of salesperson's license; notice on termination
§ 46.2-1519. License and registration fees; additional to other licenses and fees required by law
§ 46.2-1520. Collection of license and registration fees; payments from fund
§ 46.2-1521. Issuance, expiration, and renewal of licenses and certificates of registration
§ 46.2-1527.1. Motor Vehicle Transaction Recovery Fund established
§ 46.2-1527.2. Bonding requirements for applicants for an original license
§ 46.2-1527.3. Recovery from Fund, generally
§ 46.2-1527.4. Opportunity to intervene
§ 46.2-1527.5. Limitations on recovery from Fund
§ 46.2-1527.6. Assignment of claimant's rights to the Board; payment of claims
§ 46.2-1527.7. Revocation of license or certificate of registration on payment from the Fund
§ 46.2-1527.8. No waiver by the Board of disciplinary action against licensee or registrant
§ 46.2-1527.9. Continuous bonding requirements for Fund nonparticipants
§ 46.2-1527.10. Recovery on bond
§ 46.2-1527.11. No waiver by the Board of disciplinary action against licensee or registrant
§ 46.2-1528. Examination or audit of licensee; costs
§ 46.2-1529.1. Sales of used motor vehicles by dealers; disclosures; penalty
§ 46.2-1530.1. Purchaser's on-line systems filing fee; collection and remittance
§ 46.2-1530.2. Dealer's manual transaction fee; use in special fund
§ 46.2-1531. Consignment vehicles; contract
§ 46.2-1532. Odometer disclosure; penalty
§ 46.2-1532.1. Certain disclosures required by manufacturers and distributors
§ 46.2-1533.1. Test driving vehicle; residence districts
§ 46.2-1536. Coercing purchaser to provide insurance coverage on motor vehicle; penalty
§ 46.2-1537. Prohibited solicitation and compensation
§ 46.2-1538. Salesman selling for other than his employer prohibited
§ 46.2-1539. Inspection of vehicles required; penalty
§ 46.2-1539.1. Safety inspections or disclosure required before sale of certain trailers; penalty
§ 46.2-1540. Inspections prior to sale not required of certain sellers
§ 46.2-1542. Temporary registration
§ 46.2-1543. Use of old license plates and registration number on another vehicle
§ 46.2-1544. Certificate of title for dealers; penalty
§ 46.2-1545. Termination of business
§ 46.2-1545.1. Watercraft trailer dealers and watercraft trailers
§ 46.2-1545.2. Exclusion of transit buses, all-terrain vehicles, and off-road motorcycles
§ 46.2-1546. Registration of dealers; fees
§ 46.2-1548. Transferable license plates
§ 46.2-1549.1. Dealer's promotional license plates
§ 46.2-1549.2. Special license plate combination
§ 46.2-1550. Use of dealer's and manufacturer's license plates, generally
§ 46.2-1550.1. Use of dealer's license plates and temporary transport plates on certain vehicles
§ 46.2-1550.2. Issuance and use of temporary transport plates, generally
§ 46.2-1552. Use of dealer's license plates on newly purchased vehicles
§ 46.2-1553. Operation without license plate prohibited
§ 46.2-1554. Movement by manufacturer to place of shipment or delivery
§ 46.2-1555. Movement by dealers to salesrooms
§ 46.2-1556. Operation under foreign dealer's license
§ 46.2-1557. Use of certain foreign-registered motor vehicles in driver education programs
§ 46.2-1557.2. Penalties for violations of article; service of summons
§ 46.2-1557.3. Exclusion of transit buses, all-terrain vehicles, and off-road motorcycles
§ 46.2-1557.4. Watercraft trailer dealers and watercraft trailers
§ 46.2-1558. Issuance of temporary license plates to dealers and vehicle owners
§ 46.2-1559. Records to be kept by dealers; inspection
§ 46.2-1560. Application for temporary license plate
§ 46.2-1563. Suspension of right of dealer to issue
§ 46.2-1564. Plates to be destroyed on expiration
§ 46.2-1565. When plates to expire; refunds or credit
§ 46.2-1566. Filing of franchises
§ 46.2-1567. Exemption of franchises from Retail Franchising Act
§ 46.2-1568.1. Discrimination by manufacturers or distributors prohibited
§ 46.2-1569.1. Manufacturer or distributor right of first refusal
§ 46.2-1570. Discontinuation of distributors
§ 46.2-1571. Recall, warranty, maintenance and sales incentive obligations
§ 46.2-1572. Operation of dealership by manufacturer
§ 46.2-1572.1. Ownership of service facilities
§ 46.2-1572.2. Mediation of disputes
§ 46.2-1572.3. Waiver prohibited
§ 46.2-1572.4. Manufacturer or distributor use of performance standards
§ 46.2-1573. Hearings and other remedies; civil penalties
§ 46.2-1573.01. Recovery of attorney's fees
§ 46.2-1573.1. Late model and factory repurchase franchises
§ 46.2-1573.2. Filing of franchises
§ 46.2-1573.3. Exemption of franchises from Retail Franchising Act
§ 46.2-1573.6. Manufacturer or distributor right of first refusal
§ 46.2-1573.7. Discontinuation of distributors
§ 46.2-1573.8. Warranty obligations
§ 46.2-1573.9. Operation of dealership by manufacturer
§ 46.2-1573.10. Ownership of service facilities
§ 46.2-1573.11. Hearings and other remedies; civil penalties
§ 46.2-1573.12. Late model and factory repurchase franchises
§ 46.2-1573.13. Watercraft trailer dealers and watercraft trailers
§ 46.2-1573.14. Trailer dealers filing of franchises
§ 46.2-1573.15. Exemption of franchises from Retail Franchising Act
§ 46.2-1573.18. Manufacturer or distributor right of first refusal
§ 46.2-1573.19. Discontinuation of distributors
§ 46.2-1573.20. Warranty obligations
§ 46.2-1573.21. Operation of dealership by manufacturer
§ 46.2-1573.22. Ownership of service facilities
§ 46.2-1573.23. Hearings and other remedies; civil penalties
§ 46.2-1573.24. Late model and factory repurchase franchises
§ 46.2-1573.25. Motorcycle dealers filing of franchises
§ 46.2-1573.26. Exemption of franchises from Retail Franchising Act
§ 46.2-1573.29. When discontinuation, cancellation, or nonrenewal of franchise unfair
§ 46.2-1573.31. Manufacturer or distributor right of first refusal
§ 46.2-1573.32. Discontinuation of distributors
§ 46.2-1573.33. Warranty obligations
§ 46.2-1573.34. Operation of dealership by manufacturer
§ 46.2-1573.35. Ownership of service facilities
§ 46.2-1573.36. Hearings and other remedies; civil penalties
§ 46.2-1573.37. Late model and factory repurchase franchises
§ 46.2-1574. Acts of officers, directors, partners, and salespersons
§ 46.2-1577. Appeals from actions of the Board
§ 46.2-1578. Appeals to Court of Appeals; bond
§ 46.2-1579. Equitable remedies not impaired
§ 46.2-1581. Regulated advertising practices
§ 46.2-1582. Enforcement; regulations
§ 46.2-1584. Recertification Notice
§ 46.2-1585. Recertification schedule
§ 46.2-1586. Recertification requirements
§ 46.2-1587. Course provider approval