{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/46.2-1572.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/46.2-1572.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/46.2-1572.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/46.2-1572.html"}],"law_id":67472,"edition_id":1,"section_id":67472,"structure_id":15134,"section_number":"46.2-1572","catch_line":"Operation of dealership by manufacturer","history":"1988, c. 865, \u00a7 46.1-550.5:31; 1989, c. 727; 1990, c. 41; 2005, c. 456; 2023, cc. 310, 311.","full_text":"It shall be unlawful for any motor vehicle manufacturer, factory branch, distributor, distributor branch, or subsidiary thereof to own, operate, or control any motor vehicle dealership in the Commonwealth. This prohibition includes the ownership, operation, or control of any dealership of a new line-make established by a manufacturer, factory branch, distributor, or distributor branch, licensed as such by the Department, or a subsidiary thereof or a company affiliated through ownership of the manufacturer, factory branch, distributor, or distributor branch of at least 25 percent of the equity of the company. However, this section shall not prohibit:\n\n1\n\nThe operation by a manufacturer, factory branch, distributor, distributor branch, or subsidiary thereof, of a dealership for a temporary period, not to exceed one year, during the transition from one owner or operator to another;2\n\nThe ownership or control of a dealership by a manufacturer, factory branch, distributor, distributor branch, or subsidiary thereof, while the dealership is being sold under a bona fide contract or purchase option to the operator of the dealership;3\n\nThe ownership, operation, or control of a dealership by a manufacturer, factory branch, distributor, distributor branch, or subsidiary thereof, if the manufacturer, factory branch, distributor, distributor branch, or subsidiary has been engaged in the retail sale of motor vehicles through the dealership for a continuous period of three years prior to July 1, 1972, and if the Commissioner determines, after a hearing on the matter at the request of any party, that there is no dealer independent of the manufacturer or distributor, factory branch or distributor branch, or subsidiary thereof available in the community to own and operate the franchise in a manner consistent with the public interest;4\n\nThe ownership, operation, or control of a dealership by a manufacturer, factory branch, distributor, distributor branch, or subsidiary thereof if the Commissioner determines, after a hearing at the request of any party, that there is no dealer independent of the manufacturer or distributor, factory branch or distributor branch, or subsidiary thereof available in the community or trade area to own and operate the franchise in a manner consistent with the public interest;5\n\nThe ownership, operation, or control of a dealership dealing exclusively with school buses by a school bus manufacturer or school bus parts manufacturer or a person who assembles school buses; or6\n\nThe ownership, operation, or control of a dealership dealing exclusively with refined fuels truck tanks by a manufacturer of refined fuels truck tanks or by a person who assembles refined fuels truck tanks. Notwithstanding any contrary provision of this chapter, any manufacturer of fire-fighting equipment who, on or before December 31, 2004, had requested a hearing before the Department or the Commissioner in accordance with subdivision 4 for licensure as a dealer in fire-fighting equipment and\/or ambulances may be licensed as a dealer in fire-fighting equipment and\/or ambulances.","order_by":null,"text":{"0":{"id":244489,"text":"It shall be unlawful for any motor vehicle manufacturer, factory branch, distributor, distributor branch, or subsidiary thereof to own, operate, or control any motor vehicle dealership in the Commonwealth. This prohibition includes the ownership, operation, or control of any dealership of a new line-make established by a manufacturer, factory branch, distributor, or distributor branch, licensed as such by the Department, or a subsidiary thereof or a company affiliated through ownership of the manufacturer, factory branch, distributor, or distributor branch of at least 25 percent of the equity of the company. However, this section shall not prohibit:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"1"},"1":{"id":244490,"text":"The operation by a manufacturer, factory branch, distributor, distributor branch, or subsidiary thereof, of a dealership for a temporary period, not to exceed one year, during the transition from one owner or operator to another;","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"","next_prefix":"2"},"2":{"id":244491,"text":"The ownership or control of a dealership by a manufacturer, factory branch, distributor, distributor branch, or subsidiary thereof, while the dealership is being sold under a bona fide contract or purchase option to the operator of the dealership;","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"3":{"id":244492,"text":"The ownership, operation, or control of a dealership by a manufacturer, factory branch, distributor, distributor branch, or subsidiary thereof, if the manufacturer, factory branch, distributor, distributor branch, or subsidiary has been engaged in the retail sale of motor vehicles through the dealership for a continuous period of three years prior to July 1, 1972, and if the Commissioner determines, after a hearing on the matter at the request of any party, that there is no dealer independent of the manufacturer or distributor, factory branch or distributor branch, or subsidiary thereof available in the community to own and operate the franchise in a manner consistent with the public interest;","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"4"},"4":{"id":244493,"text":"The ownership, operation, or control of a dealership by a manufacturer, factory branch, distributor, distributor branch, or subsidiary thereof if the Commissioner determines, after a hearing at the request of any party, that there is no dealer independent of the manufacturer or distributor, factory branch or distributor branch, or subsidiary thereof available in the community or trade area to own and operate the franchise in a manner consistent with the public interest;","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3","next_prefix":"5"},"5":{"id":244494,"text":"The ownership, operation, or control of a dealership dealing exclusively with school buses by a school bus manufacturer or school bus parts manufacturer or a person who assembles school buses; or","type":"section","prefixes":["5"],"prefix":"5","entire_prefix":"5","prefix_anchor":"5","level":1,"prior_prefix":"4","next_prefix":"6"},"6":{"id":244495,"text":"The ownership, operation, or control of a dealership dealing exclusively with refined fuels truck tanks by a manufacturer of refined fuels truck tanks or by a person who assembles refined fuels truck tanks. Notwithstanding any contrary provision of this chapter, any manufacturer of fire-fighting equipment who, on or before December 31, 2004, had requested a hearing before the Department or the Commissioner in accordance with subdivision 4 for licensure as a dealer in fire-fighting equipment and\/or ambulances may be licensed as a dealer in fire-fighting equipment and\/or ambulances.","type":"section","prefixes":["6"],"prefix":"6","entire_prefix":"6","prefix_anchor":"6","level":1,"prior_prefix":"5"}},"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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/46.2-1572\/","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 4 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 1990, chapter 41; in 2005, chapter 456<\/a>; in 2023, chapters 310<\/a> and 311<\/a>.<\/p>","references":[{"id":57658,"section_number":"46.2-1569.1","catch_line":"Manufacturer or distributor right of first refusal","order_by":null,"url":"\/46.2-1569.1\/"}],"refers_to":false,"permalink":{"id":231553,"object_type":"law","relational_id":67472,"identifier":"46.2-1572","token":"46.2\/IV\/15\/7\/46.2-1572","url":"\/46.2-1572\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/46.2-1572\/","token":"46.2\/IV\/15\/7\/46.2-1572","dublin_core":{"Title":"Operation of dealership by manufacturer","Type":"Text","Format":"text\/html","Identifier":"\u00a7 46.2-1572","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

It shall be unlawful for any motor vehicle<\/span> manufacturer<\/span>, factory branch<\/span>, distributor, distributor branch<\/span>, or subsidiary thereof to own, operate, or control any motor vehicle<\/span> dealership in the Commonwealth. This prohibition includes the ownership, operation, or control of any dealership of a new<\/span> line-make<\/span> established by a manufacturer<\/span>, factory branch<\/span>, distributor, or distributor branch<\/span>, licensed as such by the Department<\/span>, or a subsidiary thereof or a company affiliated through ownership of the manufacturer<\/span>, factory branch<\/span>, distributor, or distributor branch<\/span> of at least 25 percent of the equity<\/span> of the company. However, this section shall not prohibit:<\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The operation by a manufacturer<\/span>, factory branch<\/span>, distributor, distributor branch<\/span>, or subsidiary thereof, of a dealership for a temporary period, not to exceed one year, during the transition from one owner<\/span> or operator<\/span> to another; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The ownership or control of a dealership by a manufacturer<\/span>, factory branch<\/span>, distributor, distributor branch<\/span>, or subsidiary thereof, while the dealership is being sold under a bona fide contract<\/span> or purchase option to the operator<\/span> of the dealership; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The ownership, operation, or control of a dealership by a manufacturer<\/span>, factory branch<\/span>, distributor, distributor branch<\/span>, or subsidiary thereof, if the manufacturer<\/span>, factory branch<\/span>, distributor, distributor branch<\/span>, or subsidiary has been engaged in the retail sale<\/span> of motor vehicles<\/span> through the dealership for a continuous period of three years prior to July 1, 1972, and if the Commissioner<\/span> determines, after a hearing<\/span> on the matter at the request of any party<\/span>, that there is no dealer<\/span> independent of the manufacturer<\/span> or distributor, factory branch<\/span> or distributor branch<\/span>, or subsidiary thereof available in the community to own and operate the franchise<\/span> in a manner consistent with the public interest; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> The ownership, operation, or control of a dealership by a manufacturer<\/span>, factory branch<\/span>, distributor, distributor branch<\/span>, or subsidiary thereof if the Commissioner<\/span> determines, after a hearing<\/span> at the request of any party<\/span>, that there is no dealer<\/span> independent of the manufacturer<\/span> or distributor, factory branch<\/span> or distributor branch<\/span>, or subsidiary thereof available in the community or trade area to own and operate the franchise<\/span> in a manner consistent with the public interest; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> The ownership, operation, or control of a dealership dealing exclusively with school buses by a school bus<\/span> manufacturer<\/span> or school bus<\/span> parts manufacturer<\/span> or a person who assembles school buses; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> The ownership, operation, or control of a dealership dealing exclusively with refined fuels truck<\/span> tanks by a manufacturer<\/span> of refined fuels truck<\/span> tanks or by a person who assembles refined fuels truck<\/span> tanks. Notwithstanding any contrary provision of this chapter, any manufacturer<\/span> of fire-fighting equipment who, on or before December 31, 2004, had requested a hearing<\/span> before the Department<\/span> or the Commissioner<\/span> in accordance with subdivision 4 for licensure as a dealer<\/span> in fire-fighting equipment and\/or ambulances may be licensed as a dealer<\/span> in fire-fighting equipment and\/or ambulances. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nOPERATION OF DEALERSHIP BY MANUFACTURER (\u00a7 46.2-1572)\n\nIt shall be unlawful for any motor vehicle manufacturer, factory branch,\ndistributor, distributor branch, or subsidiary thereof to own, operate, or\ncontrol any motor vehicle dealership in the Commonwealth. This prohibition\nincludes the ownership, operation, or control of any dealership of a new\nline-make established by a manufacturer, factory branch, distributor, or\ndistributor branch, licensed as such by the Department, or a subsidiary thereof\nor a company affiliated through ownership of the manufacturer, factory branch,\ndistributor, or distributor branch of at least 25 percent of the equity of the\ncompany. However, this section shall not prohibit:\n\n1. The operation by a manufacturer, factory branch, distributor, distributor\nbranch, or subsidiary thereof, of a dealership for a temporary period, not to\nexceed one year, during the transition from one owner or operator to another;\n\n2. The ownership or control of a dealership by a manufacturer, factory branch,\ndistributor, distributor branch, or subsidiary thereof, while the dealership is\nbeing sold under a bona fide contract or purchase option to the operator of the\ndealership;\n\n3. The ownership, operation, or control of a dealership by a manufacturer,\nfactory branch, distributor, distributor branch, or subsidiary thereof, if the\nmanufacturer, factory branch, distributor, distributor branch, or subsidiary has\nbeen engaged in the retail sale of motor vehicles through the dealership for a\ncontinuous period of three years prior to July 1, 1972, and if the Commissioner\ndetermines, after a hearing on the matter at the request of any party, that\nthere is no dealer independent of the manufacturer or distributor, factory\nbranch or distributor branch, or subsidiary thereof available in the community\nto own and operate the franchise in a manner consistent with the public\ninterest;\n\n4. The ownership, operation, or control of a dealership by a manufacturer,\nfactory branch, distributor, distributor branch, or subsidiary thereof if the\nCommissioner determines, after a hearing at the request of any party, that there\nis no dealer independent of the manufacturer or distributor, factory branch or\ndistributor branch, or subsidiary thereof available in the community or trade\narea to own and operate the franchise in a manner consistent with the public\ninterest;\n\n5. The ownership, operation, or control of a dealership dealing exclusively with\nschool buses by a school bus manufacturer or school bus parts manufacturer or a\nperson who assembles school buses; or\n\n6. The ownership, operation, or control of a dealership dealing exclusively with\nrefined fuels truck tanks by a manufacturer of refined fuels truck tanks or by a\nperson who assembles refined fuels truck tanks. Notwithstanding any contrary\nprovision of this chapter, any manufacturer of fire-fighting equipment who, on\nor before December 31, 2004, had requested a hearing before the Department or\nthe Commissioner in accordance with subdivision 4 for licensure as a dealer in\nfire-fighting equipment and\/or ambulances may be licensed as a dealer in\nfire-fighting equipment and\/or ambulances.\n\nHISTORY: 1988, c. 865, \u00a7 46.1-550.5:31; 1989, c. 727; 1990, c. 41; 2005, c.\n456; 2023, cc. 310, 311.","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}}