{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/46.2-1572.4.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/46.2-1572.4.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/46.2-1572.4.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/46.2-1572.4.html"}],"law_id":74526,"edition_id":1,"section_id":74526,"structure_id":15134,"section_number":"46.2-1572.4","catch_line":"Manufacturer or distributor use of performance standards","history":"2001, cc. 165, 173; 2016, cc. 432, 534.","full_text":"A\n\nAny performance standard or program that is used by a manufacturer or distributor for measuring dealership performance and may have a material effect on a dealer, and the application of any such standard or program by a manufacturer or distributor, shall be fair, reasonable and equitable, and if based upon a survey, shall be based upon a statistically valid sample. Upon the request of any dealer, a manufacturer or distributor shall disclose in writing to the dealer a description of how a performance standard or program is designed and all relevant information used in the application of the performance standard or program to that dealer.B\n\nA manufacturer or distributor shall not use any data, calculations, or statistical determinations of the sales performance of a dealer for any purpose, including (i) loss of incentive payments or other benefits, (ii) claim of breach or threats thereof, or (iii) notice of termination or threats thereof for the period of time the manufacturer, factory branch, distributor, or distributor branch has established an agreement, program, incentive program, or provision for loss of incentive payments or other benefits that causes a dealer to refrain from selling any used motor vehicle subject to (a) recall, (b) stop sale directive, (c) technical service bulletin, or (d) other manufacturer, factory branch, distributor, or distributor branch notification to perform work on a dealer’s used motor vehicles in its inventory when there is no remedy or there are no parts to remediate each such affected used motor vehicle from the manufacturer, factory branch, distributor, or distributor branch and for 90 days after the termination of such agreement, program, incentive program, or provision for loss of incentive payments or other benefits.\n\t\t\tThe data on which the manufacturer or distributor seeks to rely under this subsection shall only be for a period or periods not excluded under this subsection. For any performance standard or program that is used by a manufacturer or distributor for measuring dealership performance during the period or periods excluded under this subsection, a dealer shall be deemed in compliance with any such program requirements related to sales performance or sales or service customer satisfaction performance of a dealer.\n\t\t\tThis subsection shall not prevent a manufacturer, factory branch, distributor, or distributor branch from (1) requiring that a motor vehicle not be subject to an open recall or stop sale directive in order to be qualified, remain qualified, or be sold as a certified pre-owned vehicle or similar designation; (2) paying incentives for selling used vehicles with no unremedied recalls; (3) paying incentives for performing recall repairs on a vehicle in the dealer’s inventory; or (4) instructing that a dealer repair used vehicles of the line-make for which the dealer holds a franchise with an open recall, provided that the instruction does not involve coercion that imposes a penalty or provision of loss of benefits on the dealer.C\n\nA dealer may apply to the manufacturer, factory branch, distributor, or distributor branch for adjustment to data, calculations, or statistical determinations of sales performance or sales and service customer satisfaction performance for any period of time that such dealer has at least five percent of its new motor vehicle inventory subject to a recall or stop sale directive and for 90 days after the end of such period of time. Within 30 days of application for adjustment, the manufacturer, factory branch, distributor, or distributor branch shall use reasonable efforts to review and adjust the data, calculations, or other statistical determinations back to the date that the dealer was prevented from selling the new motor vehicles. A dealer applying for adjustment shall have the burden of showing that the prevention of sale had a material, adverse impact on such dealer’s new vehicle sales performance or sales and service customer satisfaction performance, and the adjustments by the manufacturer, factory branch, distributor, or distributor branch shall use reasonable efforts to remediate the effect of the impact shown on the data, calculations, or statistical determinations of sales performance or sales and service customer satisfaction performance.\n\t\t\tThe manufacturer shall take into consideration any adjustments to a dealer’s new vehicle sales performance or sales and service customer satisfaction performance made by the manufacturer under this subsection in determining a dealer’s compliance with a manufacturer performance standard or program.","order_by":null,"text":{"0":{"id":267825,"text":"Any performance standard or program that is used by a manufacturer or distributor for measuring dealership performance and may have a material effect on a dealer, and the application of any such standard or program by a manufacturer or distributor, shall be fair, reasonable and equitable, and if based upon a survey, shall be based upon a statistically valid sample. Upon the request of any dealer, a manufacturer or distributor shall disclose in writing to the dealer a description of how a performance standard or program is designed and all relevant information used in the application of the performance standard or program to that dealer.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":267826,"text":"A manufacturer or distributor shall not use any data, calculations, or statistical determinations of the sales performance of a dealer for any purpose, including (i) loss of incentive payments or other benefits, (ii) claim of breach or threats thereof, or (iii) notice of termination or threats thereof for the period of time the manufacturer, factory branch, distributor, or distributor branch has established an agreement, program, incentive program, or provision for loss of incentive payments or other benefits that causes a dealer to refrain from selling any used motor vehicle subject to (a) recall, (b) stop sale directive, (c) technical service bulletin, or (d) other manufacturer, factory branch, distributor, or distributor branch notification to perform work on a dealer’s used motor vehicles in its inventory when there is no remedy or there are no parts to remediate each such affected used motor vehicle from the manufacturer, factory branch, distributor, or distributor branch and for 90 days after the termination of such agreement, program, incentive program, or provision for loss of incentive payments or other benefits.\n\t\t\tThe data on which the manufacturer or distributor seeks to rely under this subsection shall only be for a period or periods not excluded under this subsection. For any performance standard or program that is used by a manufacturer or distributor for measuring dealership performance during the period or periods excluded under this subsection, a dealer shall be deemed in compliance with any such program requirements related to sales performance or sales or service customer satisfaction performance of a dealer.\n\t\t\tThis subsection shall not prevent a manufacturer, factory branch, distributor, or distributor branch from (1) requiring that a motor vehicle not be subject to an open recall or stop sale directive in order to be qualified, remain qualified, or be sold as a certified pre-owned vehicle or similar designation; (2) paying incentives for selling used vehicles with no unremedied recalls; (3) paying incentives for performing recall repairs on a vehicle in the dealer’s inventory; or (4) instructing that a dealer repair used vehicles of the line-make for which the dealer holds a franchise with an open recall, provided that the instruction does not involve coercion that imposes a penalty or provision of loss of benefits on the dealer.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":267827,"text":"A dealer may apply to the manufacturer, factory branch, distributor, or distributor branch for adjustment to data, calculations, or statistical determinations of sales performance or sales and service customer satisfaction performance for any period of time that such dealer has at least five percent of its new motor vehicle inventory subject to a recall or stop sale directive and for 90 days after the end of such period of time. Within 30 days of application for adjustment, the manufacturer, factory branch, distributor, or distributor branch shall use reasonable efforts to review and adjust the data, calculations, or other statistical determinations back to the date that the dealer was prevented from selling the new motor vehicles. A dealer applying for adjustment shall have the burden of showing that the prevention of sale had a material, adverse impact on such dealer’s new vehicle sales performance or sales and service customer satisfaction performance, and the adjustments by the manufacturer, factory branch, distributor, or distributor branch shall use reasonable efforts to remediate the effect of the impact shown on the data, calculations, or statistical determinations of sales performance or sales and service customer satisfaction performance.\n\t\t\tThe manufacturer shall take into consideration any adjustments to a dealer’s new vehicle sales performance or sales and service customer satisfaction performance made by the manufacturer under this subsection in determining a dealer’s compliance with a manufacturer performance standard or program.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B"}},"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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/46.2-1572.4\/","history_text":"

This law was first created in 2001. The record of its establishment is cataloged in chapters 165<\/a> and 173<\/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. It has been modified 1 time. 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. That modification is as follows: in 2016, chapters 432<\/a> and 534<\/a>.<\/p>","references":false,"refers_to":false,"permalink":{"id":231569,"object_type":"law","relational_id":74526,"identifier":"46.2-1572.4","token":"46.2\/IV\/15\/7\/46.2-1572.4","url":"\/46.2-1572.4\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/46.2-1572.4\/","token":"46.2\/IV\/15\/7\/46.2-1572.4","dublin_core":{"Title":"Manufacturer or distributor use of performance standards","Type":"Text","Format":"text\/html","Identifier":"\u00a7 46.2-1572.4","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Any performance standard or program that is used<\/span> by a manufacturer<\/span> or distributor<\/span> for measuring dealership performance and may have a material<\/span> effect on a dealer<\/span>, and the application of any such standard or program by a manufacturer<\/span> or distributor<\/span>, shall be fair, reasonable and equitable<\/span>, and if based upon a survey, shall be based upon a statistically valid sample. Upon the request of any dealer<\/span>, a manufacturer<\/span> or distributor<\/span> shall disclose in writing to the dealer<\/span> a description of how a performance standard or program is designed and all relevant information used<\/span> in the application of the performance standard or program to that dealer<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> A manufacturer<\/span> or distributor shall not use any data, calculations, or statistical determinations of the sales performance of a dealer<\/span> for any purpose, including (i) loss of incentive payments or other benefits, (ii) claim of breach or threats thereof, or (iii) notice of termination or threats thereof for the period of time the manufacturer<\/span>, factory branch<\/span>, distributor, or distributor branch<\/span> has established an agreement, program, incentive program, or provision for loss of incentive payments or other benefits that causes a dealer<\/span> to refrain from selling any used motor vehicle<\/span> subject to (a) recall, (b) stop sale directive, (c) technical service bulletin, or (d) other manufacturer<\/span>, factory branch<\/span>, distributor, or distributor branch<\/span> notification to perform work on a dealer<\/span>’s used motor vehicles<\/span> in its inventory when there is no remedy or there are no parts to remediate each such affected used motor vehicle<\/span> from the manufacturer<\/span>, factory branch<\/span>, distributor, or distributor branch<\/span> and for 90 days after the termination of such agreement, program, incentive program, or provision for loss of incentive payments or other benefits.\n\t\t\tThe data on which the manufacturer<\/span> or distributor seeks to rely under this subsection shall only be for a period or periods not excluded under this subsection. For any performance standard or program that is used by a manufacturer<\/span> or distributor for measuring dealership performance during the period or periods excluded under this subsection, a dealer<\/span> shall be deemed in compliance with any such program requirements related to sales performance or sales or service customer satisfaction performance of a dealer<\/span>.\n\t\t\tThis subsection shall not prevent a manufacturer<\/span>, factory branch<\/span>, distributor, or distributor branch<\/span> from (1) requiring that a motor vehicle not be subject to an open recall or stop sale directive in order<\/span> to be qualified, remain qualified, or be sold as a certified pre-owned vehicle or similar designation; (2) paying incentives for selling used vehicles with no unremedied recalls; (3) paying incentives for performing recall repairs on a vehicle in the dealer<\/span>’s inventory; or (4) instructing that a dealer<\/span> repair used vehicles of the line-make<\/span> for which the dealer<\/span> holds a franchise<\/span> with an open recall, provided that the instruction does not involve coercion that imposes a penalty<\/span> or provision of loss of benefits on the dealer<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> A dealer<\/span> may apply to the manufacturer<\/span>, factory branch<\/span>, distributor, or distributor branch<\/span> for adjustment to data, calculations, or statistical determinations of sales performance or sales and service customer satisfaction performance for any period of time that such dealer<\/span> has at least five percent of its new motor vehicle<\/span> inventory subject to a recall or stop sale directive and for 90 days after the end of such period of time. Within 30 days of application for adjustment, the manufacturer<\/span>, factory branch<\/span>, distributor, or distributor branch<\/span> shall use reasonable efforts to review and adjust the data, calculations, or other statistical determinations back to the date that the dealer<\/span> was prevented from selling the new motor vehicles<\/span>. A dealer<\/span> applying for adjustment shall have the burden of showing that the prevention of sale had a material<\/span>, adverse impact on such dealer<\/span>’s new vehicle sales performance or sales and service customer satisfaction performance, and the adjustments by the manufacturer<\/span>, factory branch<\/span>, distributor, or distributor branch<\/span> shall use reasonable efforts to remediate the effect of the impact shown on the data, calculations, or statistical determinations of sales performance or sales and service customer satisfaction performance.\n\t\t\tThe manufacturer<\/span> shall take into consideration any adjustments to a dealer<\/span>’s new vehicle sales performance or sales and service customer satisfaction performance made by the manufacturer<\/span> under this subsection in determining a dealer<\/span>’s compliance with a manufacturer<\/span> performance standard or program. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nMANUFACTURER OR DISTRIBUTOR USE OF PERFORMANCE STANDARDS (\u00a7 46.2-1572.4)\n\nA. Any performance standard or program that is used by a manufacturer or\ndistributor for measuring dealership performance and may have a material effect\non a dealer, and the application of any such standard or program by a\nmanufacturer or distributor, shall be fair, reasonable and equitable, and if\nbased upon a survey, shall be based upon a statistically valid sample. Upon the\nrequest of any dealer, a manufacturer or distributor shall disclose in writing\nto the dealer a description of how a performance standard or program is designed\nand all relevant information used in the application of the performance standard\nor program to that dealer.\n\nB. A manufacturer or distributor shall not use any data, calculations, or\nstatistical determinations of the sales performance of a dealer for any purpose,\nincluding (i) loss of incentive payments or other benefits, (ii) claim of breach\nor threats thereof, or (iii) notice of termination or threats thereof for the\nperiod of time the manufacturer, factory branch, distributor, or distributor\nbranch has established an agreement, program, incentive program, or provision\nfor loss of incentive payments or other benefits that causes a dealer to refrain\nfrom selling any used motor vehicle subject to (a) recall, (b) stop sale\ndirective, (c) technical service bulletin, or (d) other manufacturer, factory\nbranch, distributor, or distributor branch notification to perform work on a\ndealer’s used motor vehicles in its inventory when there is no remedy or\nthere are no parts to remediate each such affected used motor vehicle from the\nmanufacturer, factory branch, distributor, or distributor branch and for 90 days\nafter the termination of such agreement, program, incentive program, or\nprovision for loss of incentive payments or other benefits.\n\t\t\tThe data on which the manufacturer or distributor seeks to rely under this\nsubsection shall only be for a period or periods not excluded under this\nsubsection. For any performance standard or program that is used by a\nmanufacturer or distributor for measuring dealership performance during the\nperiod or periods excluded under this subsection, a dealer shall be deemed in\ncompliance with any such program requirements related to sales performance or\nsales or service customer satisfaction performance of a dealer.\n\t\t\tThis subsection shall not prevent a manufacturer, factory branch,\ndistributor, or distributor branch from (1) requiring that a motor vehicle not\nbe subject to an open recall or stop sale directive in order to be qualified,\nremain qualified, or be sold as a certified pre-owned vehicle or similar\ndesignation; (2) paying incentives for selling used vehicles with no unremedied\nrecalls; (3) paying incentives for performing recall repairs on a vehicle in the\ndealer’s inventory; or (4) instructing that a dealer repair used vehicles\nof the line-make for which the dealer holds a franchise with an open recall,\nprovided that the instruction does not involve coercion that imposes a penalty\nor provision of loss of benefits on the dealer.\n\nC. A dealer may apply to the manufacturer, factory branch, distributor, or\ndistributor branch for adjustment to data, calculations, or statistical\ndeterminations of sales performance or sales and service customer satisfaction\nperformance for any period of time that such dealer has at least five percent of\nits new motor vehicle inventory subject to a recall or stop sale directive and\nfor 90 days after the end of such period of time. Within 30 days of application\nfor adjustment, the manufacturer, factory branch, distributor, or distributor\nbranch shall use reasonable efforts to review and adjust the data, calculations,\nor other statistical determinations back to the date that the dealer was\nprevented from selling the new motor vehicles. A dealer applying for adjustment\nshall have the burden of showing that the prevention of sale had a material,\nadverse impact on such dealer’s new vehicle sales performance or sales and\nservice customer satisfaction performance, and the adjustments by the\nmanufacturer, factory branch, distributor, or distributor branch shall use\nreasonable efforts to remediate the effect of the impact shown on the data,\ncalculations, or statistical determinations of sales performance or sales and\nservice customer satisfaction performance.\n\t\t\tThe manufacturer shall take into consideration any adjustments to a\ndealer’s new vehicle sales performance or sales and service customer\nsatisfaction performance made by the manufacturer under this subsection in\ndetermining a dealer’s compliance with a manufacturer performance standard\nor program.\n\nHISTORY: 2001, cc. 165, 173; 2016, cc. 432, 534.","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}}