{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/46.2-1570.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/46.2-1570.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/46.2-1570.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/46.2-1570.html"}],"law_id":85388,"edition_id":1,"section_id":85388,"structure_id":15134,"section_number":"46.2-1570","catch_line":"Discontinuation of distributors","history":"1988, c. 865, \u00a7 46.1-550.5:29; 1989, c. 727; 2019, cc. 77, 738.","full_text":"A\n\nIf the contract between a distributor and a manufacturer or importer is terminated or otherwise discontinued, all franchises granted to motor vehicle dealers in Virginia by that distributor shall continue in full force and shall not be affected by the discontinuance, except that the manufacturer, factory branch, distributor, representative, or other person who undertakes to distribute motor vehicles of the same line-make or the same motor vehicles of a renamed line-make shall be substituted for the discontinued distributor under the existing motor vehicle dealer franchises and those franchises shall be modified accordingly.B\n\nIf a manufacturer or factory branch (i)(a) discontinues its right to manufacture a line-make of motor vehicles or (b) sells or otherwise transfers its right to manufacture a line-make of motor vehicles to another manufacturer or factory branch that will manufacture motor vehicles of the same line-make and (ii) the acquiring manufacturer or factory branch does not honor the existing franchise agreements of motor vehicle dealers in Virginia of the same line-make, such discontinuation, sale, or transfer shall constitute a termination of the franchise pursuant to subdivisions 5b and 5c of § 46.2-1569 and such motor vehicle dealers shall be entitled to compensation pursuant to those subdivisions.","order_by":null,"text":{"0":{"id":305889,"text":"If the contract between a distributor and a manufacturer or importer is terminated or otherwise discontinued, all franchises granted to motor vehicle dealers in Virginia by that distributor shall continue in full force and shall not be affected by the discontinuance, except that the manufacturer, factory branch, distributor, representative, or other person who undertakes to distribute motor vehicles of the same line-make or the same motor vehicles of a renamed line-make shall be substituted for the discontinued distributor under the existing motor vehicle dealer franchises and those franchises shall be modified accordingly.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":305890,"text":"If a manufacturer or factory branch (i)(a) discontinues its right to manufacture a line-make of motor vehicles or (b) sells or otherwise transfers its right to manufacture a line-make of motor vehicles to another manufacturer or factory branch that will manufacture motor vehicles of the same line-make and (ii) the acquiring manufacturer or factory branch does not honor the existing franchise agreements of motor vehicle dealers in Virginia of the same line-make, such discontinuation, sale, or transfer shall constitute a termination of the franchise pursuant to subdivisions 5b and 5c of § 46.2-1569 and such motor vehicle dealers shall be entitled to compensation pursuant to those subdivisions.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A"}},"ancestry":[{"id":15134,"edition_id":1,"name":"Franchises","identifier":"7","label":"article","depth":4,"order_by":1,"parent_id":13356,"metadata":{},"date_created":"2026-06-26 03:52:26","date_modified":"2026-06-26 03:52:26","permalink":{"id":231519,"object_type":"structure","relational_id":15134,"identifier":"7","token":"46.2\/IV\/15\/7","url":"\/46.2\/IV\/15\/7\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13356,"edition_id":1,"name":"Motor Vehicle Dealers","identifier":"15","label":"chapter","depth":3,"order_by":1,"parent_id":13355,"metadata":{},"date_created":"2026-06-26 03:44:42","date_modified":"2026-06-26 03:44:42","permalink":{"id":231067,"object_type":"structure","relational_id":13356,"identifier":"15","token":"46.2\/IV\/15","url":"\/46.2\/IV\/15\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13355,"edition_id":1,"name":"Dealers and Driver Training Schools","identifier":"IV","label":"subtitle","depth":2,"order_by":1,"parent_id":12770,"metadata":{},"date_created":"2026-06-26 03:44:42","date_modified":"2026-06-26 03:44:42","permalink":{"id":231065,"object_type":"structure","relational_id":13355,"identifier":"IV","token":"46.2\/IV","url":"\/46.2\/IV\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12770,"edition_id":1,"name":"Motor Vehicles","identifier":"46.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:52","date_modified":"2026-06-26 03:43:52","permalink":{"id":225289,"object_type":"structure","relational_id":12770,"identifier":"46.2","token":"46.2","url":"\/46.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":81977,"structure_id":15134,"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":75377,"structure_id":15134,"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":85096,"structure_id":15134,"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":74199,"structure_id":15134,"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":60913,"structure_id":15134,"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":57658,"structure_id":15134,"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":85388,"structure_id":15134,"section_number":"46.2-1570","catch_line":"Discontinuation of distributors","url":"\/46.2-1570\/","token":"46.2\/IV\/15\/7\/46.2-1570","metadata":false},{"id":60902,"structure_id":15134,"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":67472,"structure_id":15134,"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":75339,"structure_id":15134,"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":75995,"structure_id":15134,"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":65117,"structure_id":15134,"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":false},{"id":74526,"structure_id":15134,"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":69981,"structure_id":15134,"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":84529,"structure_id":15134,"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":67893,"structure_id":15134,"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":57658,"structure_id":15134,"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},"next_section":{"id":60902,"structure_id":15134,"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/46.2-1570\/","history_text":"

This law was first created in 1988. The record of its establishment is cataloged in chapter 865 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. Unfortunately, the 1988 \u201cActs\u201d aren\u2019t available online. It has been modified 2 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1989, chapter 727; in 2019, chapters 77<\/a> and 738<\/a>.<\/p>","references":false,"refers_to":[{"id":60913,"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","order_by":null,"url":"\/46.2-1569\/"}],"permalink":{"id":231545,"object_type":"law","relational_id":85388,"identifier":"46.2-1570","token":"46.2\/IV\/15\/7\/46.2-1570","url":"\/46.2-1570\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/46.2-1570\/","token":"46.2\/IV\/15\/7\/46.2-1570","dublin_core":{"Title":"Discontinuation of distributors","Type":"Text","Format":"text\/html","Identifier":"\u00a7 46.2-1570","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> If the contract<\/span> between a distributor<\/span> and a manufacturer<\/span> or importer is terminated or otherwise discontinued, all franchises<\/span> granted to motor vehicle dealers<\/span> in Virginia by that distributor<\/span> shall continue in full force and shall not be affected by the discontinuance, except that the manufacturer<\/span>, factory branch<\/span>, distributor<\/span>, representative, or other person who undertakes to distribute motor vehicles<\/span> of the same line-make<\/span> or the same motor vehicles<\/span> of a renamed line-make<\/span> shall be substituted for the discontinued distributor<\/span> under the existing motor vehicle dealer<\/span> franchises<\/span> and those franchises<\/span> shall be modified accordingly. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> If a manufacturer<\/span> or factory branch<\/span> (i)(a) discontinues its right to manufacture a line-make<\/span> of motor vehicles<\/span> or (b) sells or otherwise transfers its right to manufacture a line-make<\/span> of motor vehicles<\/span> to another manufacturer<\/span> or factory branch<\/span> that will manufacture motor vehicles<\/span> of the same line-make<\/span> and (ii) the acquiring manufacturer<\/span> or factory branch<\/span> does not honor the existing franchise<\/span> agreements of motor vehicle dealers<\/span> in Virginia of the same line-make<\/span>, such discontinuation, sale, or transfer shall constitute a termination of the franchise<\/span> pursuant to subdivisions 5b and 5c of § 46.2-1569<\/a> and such motor vehicle dealers<\/span> shall be entitled to compensation pursuant to those subdivisions. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nDISCONTINUATION OF DISTRIBUTORS (\u00a7 46.2-1570)\n\nA. If the contract between a distributor and a manufacturer or importer is\nterminated or otherwise discontinued, all franchises granted to motor vehicle\ndealers in Virginia by that distributor shall continue in full force and shall\nnot be affected by the discontinuance, except that the manufacturer, factory\nbranch, distributor, representative, or other person who undertakes to\ndistribute motor vehicles of the same line-make or the same motor vehicles of a\nrenamed line-make shall be substituted for the discontinued distributor under\nthe existing motor vehicle dealer franchises and those franchises shall be\nmodified accordingly.\n\nB. If a manufacturer or factory branch (i)(a) discontinues its right to\nmanufacture a line-make of motor vehicles or (b) sells or otherwise transfers\nits right to manufacture a line-make of motor vehicles to another manufacturer\nor factory branch that will manufacture motor vehicles of the same line-make and\n(ii) the acquiring manufacturer or factory branch does not honor the existing\nfranchise agreements of motor vehicle dealers in Virginia of the same line-make,\nsuch discontinuation, sale, or transfer shall constitute a termination of the\nfranchise pursuant to subdivisions 5b and 5c of § 46.2-1569 and such motor\nvehicle dealers shall be entitled to compensation pursuant to those\nsubdivisions.\n\nHISTORY: 1988, c. 865, \u00a7 46.1-550.5:29; 1989, c. 727; 2019, cc. 77, 738.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}