{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2026\/code-json\/46.2-1573.02.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2026\/code-text\/46.2-1573.02.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2026\/code-xml\/46.2-1573.02.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2026\/code-html\/46.2-1573.02.html"}],"law_id":365095,"edition_id":2,"section_id":365095,"structure_id":52095,"section_number":"46.2-1573.02","catch_line":"Limited right of dealers to sell new motor vehicles following termination of franchise","history":"2010, cc. 284, 318.","full_text":"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:\n\n1\n\nThe vehicle was acquired in the ordinary course of business as a new vehicle by a dealer franchised to sell that vehicle;\n\n2\n\nThe 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\n\n3\n\nThe vehicle was held in the inventory of the dealer on the date of the franchise agreement’s termination.\n\t\t\tThis 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.\n\n","order_by":null,"text":{"0":{"id":1360236,"text":"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:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"1"},"1":{"id":1360237,"text":"The vehicle was acquired in the ordinary course of business as a new vehicle by a dealer franchised to sell that vehicle;","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"","next_prefix":"2"},"2":{"id":1360238,"text":"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","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"3":{"id":1360239,"text":"The vehicle was held in the inventory of the dealer on the date of the franchise agreement’s termination.\n\t\t\tThis 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.","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2"}},"ancestry":[{"id":52095,"edition_id":2,"name":"Franchises","identifier":"7","label":"article","depth":4,"order_by":9,"parent_id":52086,"metadata":{"child_laws":16,"child_structures":0},"date_created":"2026-08-02 02:53:29","date_modified":"2026-08-02 12:34:20","permalink":{"id":1458521,"object_type":"structure","relational_id":52095,"identifier":"7","token":"46.2\/IV\/15\/7","url":"\/46.2\/IV\/15\/7\/","edition_id":2,"permalink":0,"preferred":1}},{"id":52086,"edition_id":2,"name":"Motor Vehicle Dealers","identifier":"15","label":"chapter","depth":3,"order_by":1,"parent_id":52085,"metadata":{"child_laws":170,"child_structures":16},"date_created":"2026-08-02 02:53:16","date_modified":"2026-08-02 12:34:18","permalink":{"id":1458069,"object_type":"structure","relational_id":52086,"identifier":"15","token":"46.2\/IV\/15","url":"\/46.2\/IV\/15\/","edition_id":2,"permalink":0,"preferred":1}},{"id":52085,"edition_id":2,"name":"Dealers and Driver Training Schools","identifier":"IV","label":"subtitle","depth":2,"order_by":4,"parent_id":52048,"metadata":{"child_laws":212,"child_structures":25},"date_created":"2026-08-02 02:53:16","date_modified":"2026-08-02 12:34:18","permalink":{"id":1458067,"object_type":"structure","relational_id":52085,"identifier":"IV","token":"46.2\/IV","url":"\/46.2\/IV\/","edition_id":2,"permalink":0,"preferred":1}},{"id":52048,"edition_id":2,"name":"Motor Vehicles","identifier":"46.2","label":"title","depth":1,"order_by":101,"parent_id":null,"metadata":{"child_laws":1830,"child_structures":157},"date_created":"2026-08-02 02:52:29","date_modified":"2026-08-02 12:34:02","permalink":{"id":1452291,"object_type":"structure","relational_id":52048,"identifier":"46.2","token":"46.2","url":"\/46.2\/","edition_id":2,"permalink":0,"preferred":1}}],"structure_contents":[{"id":365081,"structure_id":52095,"section_number":"46.2-1566","catch_line":"Filing of franchises","url":"\/46.2-1566\/","token":"46.2\/IV\/15\/7\/46.2-1566","metadata":false},{"id":365082,"structure_id":52095,"section_number":"46.2-1567","catch_line":"Exemption of franchises from Retail Franchising Act","url":"\/46.2-1567\/","token":"46.2\/IV\/15\/7\/46.2-1567","metadata":false},{"id":365084,"structure_id":52095,"section_number":"46.2-1568","catch_line":"Coercion of retail dealer by manufacturer or distributor with respect to retail installment sales contracts, extended service contracts or extended maintenance plans, financing, or leasing prohibited; penalty","url":"\/46.2-1568\/","token":"46.2\/IV\/15\/7\/46.2-1568","metadata":false},{"id":365083,"structure_id":52095,"section_number":"46.2-1568.1","catch_line":"Discrimination by manufacturers or distributors prohibited","url":"\/46.2-1568.1\/","token":"46.2\/IV\/15\/7\/46.2-1568.1","metadata":false},{"id":365086,"structure_id":52095,"section_number":"46.2-1569","catch_line":"Other coercion of dealers; transfer, grant, succession to and cancellation of dealer franchises; delivery of vehicles, parts, and accessories","url":"\/46.2-1569\/","token":"46.2\/IV\/15\/7\/46.2-1569","metadata":false},{"id":365085,"structure_id":52095,"section_number":"46.2-1569.1","catch_line":"Manufacturer or distributor right of first refusal","url":"\/46.2-1569.1\/","token":"46.2\/IV\/15\/7\/46.2-1569.1","metadata":false},{"id":365087,"structure_id":52095,"section_number":"46.2-1570","catch_line":"Discontinuation of distributors","url":"\/46.2-1570\/","token":"46.2\/IV\/15\/7\/46.2-1570","metadata":{"court_decisions":""}},{"id":365088,"structure_id":52095,"section_number":"46.2-1571","catch_line":"Recall, warranty, maintenance and sales incentive obligations","url":"\/46.2-1571\/","token":"46.2\/IV\/15\/7\/46.2-1571","metadata":false},{"id":365093,"structure_id":52095,"section_number":"46.2-1572","catch_line":"Operation of dealership by manufacturer","url":"\/46.2-1572\/","token":"46.2\/IV\/15\/7\/46.2-1572","metadata":false},{"id":365089,"structure_id":52095,"section_number":"46.2-1572.1","catch_line":"Ownership of service facilities","url":"\/46.2-1572.1\/","token":"46.2\/IV\/15\/7\/46.2-1572.1","metadata":false},{"id":365090,"structure_id":52095,"section_number":"46.2-1572.2","catch_line":"Mediation of disputes","url":"\/46.2-1572.2\/","token":"46.2\/IV\/15\/7\/46.2-1572.2","metadata":false},{"id":365091,"structure_id":52095,"section_number":"46.2-1572.3","catch_line":"Waiver prohibited","url":"\/46.2-1572.3\/","token":"46.2\/IV\/15\/7\/46.2-1572.3","metadata":{"court_decisions":{"0":{"name":"Field Auto City, Inc. v. General Motors Corp.","case_number":"1:06cv1174","citation":"476 F. Supp. 2d 545","date":"2007-02-26","url":"https:\/\/www.courtlistener.com\/opinion\/2417991\/field-auto-city-inc-v-general-motors-corp\/","abstract":" .\u202f.\u202f. 476 F.Supp.2d 545 (2007) .\u202f.\u202f. ","court_html":"District Court, E.D. Virginia"}}}},{"id":365092,"structure_id":52095,"section_number":"46.2-1572.4","catch_line":"Manufacturer or distributor use of performance standards","url":"\/46.2-1572.4\/","token":"46.2\/IV\/15\/7\/46.2-1572.4","metadata":false},{"id":365133,"structure_id":52095,"section_number":"46.2-1573","catch_line":"Hearings and other remedies; civil penalties","url":"\/46.2-1573\/","token":"46.2\/IV\/15\/7\/46.2-1573","metadata":false},{"id":365094,"structure_id":52095,"section_number":"46.2-1573.01","catch_line":"Recovery of attorney's fees","url":"\/46.2-1573.01\/","token":"46.2\/IV\/15\/7\/46.2-1573.01","metadata":false},{"id":365095,"structure_id":52095,"section_number":"46.2-1573.02","catch_line":"Limited right of dealers to sell new motor vehicles following termination of franchise","url":"\/46.2-1573.02\/","token":"46.2\/IV\/15\/7\/46.2-1573.02","metadata":false}],"previous_section":{"id":365094,"structure_id":52095,"section_number":"46.2-1573.01","catch_line":"Recovery of attorney's fees","url":"\/46.2-1573.01\/","token":"46.2\/IV\/15\/7\/46.2-1573.01","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/46.2-1573.02\/","history_text":"

This law was first created in 2010. The record of its establishment is cataloged in chapters 284<\/a> and 318<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year.<\/p>","references":false,"refers_to":false,"permalink":{"id":1458583,"object_type":"law","relational_id":365095,"identifier":"46.2-1573.02","token":"46.2\/IV\/15\/7\/46.2-1573.02","url":"\/46.2-1573.02\/","edition_id":2,"permalink":0,"preferred":1},"url":"\/46.2-1573.02\/","token":"46.2\/IV\/15\/7\/46.2-1573.02","dublin_core":{"Title":"Limited right of dealers to sell new motor vehicles following termination of franchise","Type":"Text","Format":"text\/html","Identifier":"\u00a7 46.2-1573.02","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

Notwithstanding any provision of this title to the contrary, a motor vehicle dealer<\/span> shall have the right, for 180 days following the termination of its franchise<\/span>, to continue to sell and advertise as new any existing new motor vehicle<\/span> inventory of the line-make<\/span> of the terminated franchise<\/span>, under the following circumstances:<\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The vehicle was acquired in the ordinary course of business as a new vehicle by a dealer franchised to sell that vehicle; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The franchise<\/span> agreement of the dealer is terminated, canceled, or rejected by the manufacturer<\/span>, factory branch<\/span>, distributor, or distributor branch<\/span> and the termination, cancellation<\/span>, or rejection is not a result of the revocation<\/span> of the dealer’s license to operate as a dealer or the dealer’s conviction<\/span> of a crime<\/span>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The vehicle was held in the inventory of the dealer on the date of the franchise<\/span> agreement’s termination.\n\t\t\tThis provision does not entitle a dealer whose franchise<\/span> 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<\/span>, factory branch<\/span>, distributor, or distributor branch<\/span>, except as earned by the dealer prior to termination of the franchise<\/span> agreement. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nLIMITED RIGHT OF DEALERS TO SELL NEW MOTOR VEHICLES FOLLOWING TERMINATION OF\nFRANCHISE (\u00a7 46.2-1573.02)\n\nNotwithstanding any provision of this title to the contrary, a motor vehicle\ndealer shall have the right, for 180 days following the termination of its\nfranchise, to continue to sell and advertise as new any existing new motor\nvehicle inventory of the line-make of the terminated franchise, under the\nfollowing circumstances:\n\n1. The vehicle was acquired in the ordinary course of business as a new vehicle\nby a dealer franchised to sell that vehicle;\n\n2. The franchise agreement of the dealer is terminated, canceled, or rejected by\nthe manufacturer, factory branch, distributor, or distributor branch and the\ntermination, cancellation, or rejection is not a result of the revocation of the\ndealer’s license to operate as a dealer or the dealer’s conviction\nof a crime; and\n\n3. The vehicle was held in the inventory of the dealer on the date of the\nfranchise agreement’s termination.\n\t\t\tThis provision does not entitle a dealer whose franchise agreement has been\nterminated, canceled, or rejected to continue to perform warranty service\nrepairs or continue to be eligible to offer or receive consumer or dealer\nincentives offered by the manufacturer, factory branch, distributor, or\ndistributor branch, except as earned by the dealer prior to termination of the\nfranchise agreement.\n\nHISTORY: 2010, cc. 284, 318.","edition":{"id":2,"name":"2026","slug":"2026","date_created":"2026-07-16 18:40:23","date_modified":"2026-08-02 15:14:36","current":1,"order_by":2,"last_import":"2026-08-02 12:37:30"}}