46.2-1573.02 - Limited right of dealers to sell new motor vehicles following termination of franchise. - Virginia Statutes

§ 46.2-1573.02. Limited right of dealers to sell new motor vehicles followingtermination of franchise.

Notwithstanding any provision of this title to the contrary, a motor vehicledealer shall have the right, for 180 days following the termination of itsfranchise, to continue to sell and advertise as new any existing new motorvehicle inventory of the line-make of the terminated franchise, under thefollowing circumstances:

1. The vehicle was acquired in the ordinary course of business as a newvehicle by a dealer franchised to sell that vehicle;

2. The franchise agreement of the dealer is terminated, canceled, or rejectedby the manufacturer, factory branch, distributor, or distributor branch andthe termination, cancellation, or rejection is not a result of the revocationof the dealer's license to operate as a dealer or the dealer's conviction ofa crime; and

3. The vehicle was held in the inventory of the dealer on the date of thefranchise agreement's termination.

This provision does not entitle a dealer whose franchise agreement has beenterminated, canceled, or rejected to continue to perform warranty servicerepairs or continue to be eligible to offer or receive consumer or dealerincentives offered by the manufacturer, factory branch, distributor, ordistributor branch, except as earned by the dealer prior to termination ofthe franchise agreement.

(2010, cc. 284, 318.)