{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/46.2-1573.28.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/46.2-1573.28.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/46.2-1573.28.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/46.2-1573.28.html"}],"law_id":65405,"edition_id":1,"section_id":65405,"structure_id":13827,"section_number":"46.2-1573.28","catch_line":"Other coercion of dealers; transfer, grant, succession to and cancellation of dealer franchises; delivery of motorcycles, parts, and accessories","history":"1996, cc. 1043, 1052, \u00a7 46.2-1993.67; 1997, c. 802; 2010, c. 610; 2015, c. 615.","full_text":"It shall be unlawful for any manufacturer, factory branch, distributor, or distributor branch, or any field representative, officer, agent, or their representatives:\n\n1\n\nTo coerce or attempt to coerce any dealer to accept delivery of any motorcycle or motorcycles, parts or accessories therefor, or any other commodities that have not been ordered by the dealer.2\n\nTo coerce or attempt to coerce any dealer to enter into an agreement with the manufacturer, factory branch, distributor, or distributor branch, or representative thereof, or do any other act unfair to the dealer, by threatening to cancel any franchise existing between the manufacturer, factory branch, distributor, distributor branch, or representative thereof and the dealer.3\n\nTo coerce or attempt to coerce any dealer to join, contribute to, or affiliate with any advertising association.4\n\nTo prevent or refuse to approve the sale or transfer of the ownership of a dealership by the sale of the business, stock transfer, or otherwise, or the transfer, sale, or assignment of a dealer franchise, or a change in the executive management or principal operator of the dealership, unless the franchisor provides written notice to the dealer of its objection and the reasons therefor at least 30 days prior to the proposed effective date of the transfer, sale, assignment, or change. No such objection shall be effective to prevent the sale, transfer, assignment, or change if the Commissioner has determined, if requested in writing by the dealer within 30 days after receipt of an objection to the proposed sale, transfer, or change, and after a hearing on the matter, that the failure to permit or honor the sale, transfer, assignment, or change is unreasonable under the circumstances. No franchise may be sold, assigned, or transferred unless (i) the franchisor has been given at least 90 days’ prior written notice by the dealer as to the identity, financial ability, and qualifications of the proposed transferee and (ii) the sale or transfer of the franchise and business will not involve, without the franchisor’s consent, a relocation of the business.5\n\nTo grant an additional franchise for a particular line-make of motorcycle in a relevant market area in which a dealer or dealers in that line-make are already located unless the franchisor has first advised in writing, by certified mail, return receipt requested, all other dealers in the line-make in the relevant market area. No such additional franchise may be established at the proposed site unless the Commissioner has determined, if requested by a dealer of the same line-make in the relevant market area within 30 days after receipt of the franchisor’s notice of intention to establish the additional franchise, and after a hearing on the matter, that there is reasonable evidence that after the grant of the new franchise, the market will support all of the dealers in that line-make in the relevant market area. Establishing a franchised dealer in a relevant market area to replace a franchised dealer that has not been in operation for more than two years shall constitute the establishment of a new franchise subject to the terms of this subdivision. The two-year period for replacing a franchised dealer shall begin on the day the franchise was terminated or, if a termination hearing was held, on the day the franchisor was legally permitted finally to terminate the franchise. This subdivision shall not apply to (i) the relocation of an existing dealer within that dealer’s relevant market area if the relocation site is to be more than 10 miles distant from any other dealer for the same line-make; (ii) the relocation of an existing dealer within that dealer’s relevant market area if the relocation site is to be more distant than the existing site from all other dealers of the same line-make in that relevant market area; or (iii) the relocation of an existing new motorcycle dealer within two miles of the existing site of the relocating dealer.6\n\nExcept as otherwise provided in this subdivision and notwithstanding the terms of any franchise, to terminate, cancel, or refuse to renew the franchise of any dealer without good cause and unless (i) the dealer and the Commissioner have received written notice of the franchisor’s intentions at least 60 days prior to the effective date of such termination, cancellation, or the expiration date of the franchise, setting forth the specific grounds for the action, and (ii) the Commissioner has determined, if requested in writing by the dealer within the 60-day period, and after a hearing on the matter, that there is good cause for the termination, cancellation, or nonrenewal of the franchise. In any case where a petition is made to the Commissioner for a determination as to good cause for the termination, cancellation, or nonrenewal of a franchise, the franchise in question shall continue in effect pending the Commissioner’s decision or, if that decision is appealed to the circuit court, pending the decision of the circuit court. In any case in which a franchisor neither advises a dealer that it does not intend to renew a franchise nor takes any action to renew a franchise beyond its expiration date, the franchise in question shall continue in effect on the terms last agreed to by the parties. Notwithstanding the other provisions of this subdivision, notice of termination, cancellation, or nonrenewal may be provided to a dealer by a franchisor not less than 15 days prior to the effective date of such termination, cancellation, or nonrenewal when the grounds for such action are any of the following:\n\t\t\ta. Insolvency of the franchised motorcycle dealer or filing of any petition by or against the franchised motorcycle dealer, under any bankruptcy or receivership law, leading to liquidation or that is intended to lead to liquidation of the franchisee’s business;\n\t\t\tb. Failure of the franchised motorcycle dealer to conduct its customary sales and service operations during its posted business hours for seven consecutive business days, except where the failure results from acts of God or circumstances beyond the direct control of the franchised motorcycle dealer;\n\t\t\tc. Revocation of any license that the franchised motorcycle dealer is required to have to operate a dealership; or\n\t\t\td. Conviction of the dealer or any principal of the dealer of a felony.\n\t\t\tThe change or discontinuance of a marketing or distribution system of a particular line-make product by a manufacturer or distributor, while the name identification of the product is continued in substantial form by the same or different manufacturer or distributor, may be considered to be a franchise termination, cancellation, or nonrenewal. The provisions of this paragraph shall apply to changes and discontinuances made after January 1, 1989, but they shall not be considered by any court in any case in which such a change or discontinuance occurring prior to that date has been challenged as constituting a termination, cancellation, or nonrenewal.7\n\nTo fail to provide continued parts and service support to a dealer that holds a franchise in a discontinued line-make for at least five years from the date of such discontinuance. This requirement shall not apply to a line-make that was discontinued prior to January 1, 1989.8\n\nTo fail to allow a dealer the right at any time to designate a member of his family as a successor to the dealership in the event of the death or incapacity of the dealer. It shall be unlawful to prevent or refuse to honor the succession to a dealership by a member of the family of a deceased or incapacitated dealer if the franchisor has not provided to the member of the family previously designated by the dealer as his successor written notice of its objections to the succession and of such person’s right to seek a hearing on the matter before the Commissioner pursuant to this article, and the Commissioner determines, if requested in writing by such member of the family within 30 days of receipt of such notice from the franchisor, and after a hearing on the matter before the Commissioner pursuant to this article, that the failure to permit or honor the succession is unreasonable under the circumstances. No member of the family may succeed to a franchise unless (i) the franchisor has been given written notice as to the identity, financial ability, and qualifications of the member of the family in question and (ii) the succession to the franchise will not involve, without the franchisor’s consent, a relocation of the business.9\n\nTo fail to ship monthly to any dealer, if ordered by the dealer, the number of new motorcycles of each make, series, and model needed by the dealer to receive a percentage of total new motorcycle sales of each make, series, and model equitably related to the total new motorcycle production or importation currently being achieved nationally by each make, series, and model covered under the franchise. Upon the written request of any dealer holding its sales or sales and service franchise, the manufacturer or distributor shall disclose to the dealer in writing the basis upon which new motorcycles are allocated, scheduled, and delivered to the dealers of the same line-make. If allocation is at issue in a request for a hearing, the dealer may demand the Commissioner to direct that the manufacturer or distributor provide to the dealer, within 30 days of such demand, all records of sales and all records of distribution of all motorcycles to the same line-make dealers who compete with the dealer requesting the hearing.10\n\nTo require or otherwise coerce a dealer to underutilize the dealer’s facilities.11\n\nTo include in any franchise with a motorcycle dealer terms that are contrary to, prohibited by, or otherwise inconsistent with the requirements of this chapter.12\n\nTo require under any franchise agreement a motorcycle dealer to pay the attorney fees of the manufacturer or distributor related to hearings and appeals brought under this article.13\n\nTo fail to include in any franchise with a motorcycle dealer the following language: “If any provision herein contravenes the laws or regulations of any state or other jurisdiction wherein this agreement is to be performed, or denies access to the procedures, forums, or remedies provided for by such laws or regulations, such provision shall be deemed to be modified to conform to such laws or regulations, and all other terms and provisions shall remain in full force,” or words to that effect.14\n\nTo include in any franchise agreement with a motorcycle dealer terms that prohibit a motorcycle dealer from exercising his right to a trial by jury in any action where such right otherwise exists.","order_by":null,"text":{"0":{"id":237772,"text":"It shall be unlawful for any manufacturer, factory branch, distributor, or distributor branch, or any field representative, officer, agent, or their representatives:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"1"},"1":{"id":237773,"text":"To coerce or attempt to coerce any dealer to accept delivery of any motorcycle or motorcycles, parts or accessories therefor, or any other commodities that have not been ordered by the dealer.","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"","next_prefix":"2"},"2":{"id":237774,"text":"To coerce or attempt to coerce any dealer to enter into an agreement with the manufacturer, factory branch, distributor, or distributor branch, or representative thereof, or do any other act unfair to the dealer, by threatening to cancel any franchise existing between the manufacturer, factory branch, distributor, distributor branch, or representative thereof and the dealer.","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"3":{"id":237775,"text":"To coerce or attempt to coerce any dealer to join, contribute to, or affiliate with any advertising association.","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"4"},"4":{"id":237776,"text":"To prevent or refuse to approve the sale or transfer of the ownership of a dealership by the sale of the business, stock transfer, or otherwise, or the transfer, sale, or assignment of a dealer franchise, or a change in the executive management or principal operator of the dealership, unless the franchisor provides written notice to the dealer of its objection and the reasons therefor at least 30 days prior to the proposed effective date of the transfer, sale, assignment, or change. No such objection shall be effective to prevent the sale, transfer, assignment, or change if the Commissioner has determined, if requested in writing by the dealer within 30 days after receipt of an objection to the proposed sale, transfer, or change, and after a hearing on the matter, that the failure to permit or honor the sale, transfer, assignment, or change is unreasonable under the circumstances. No franchise may be sold, assigned, or transferred unless (i) the franchisor has been given at least 90 days’ prior written notice by the dealer as to the identity, financial ability, and qualifications of the proposed transferee and (ii) the sale or transfer of the franchise and business will not involve, without the franchisor’s consent, a relocation of the business.","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3","next_prefix":"5"},"5":{"id":237777,"text":"To grant an additional franchise for a particular line-make of motorcycle in a relevant market area in which a dealer or dealers in that line-make are already located unless the franchisor has first advised in writing, by certified mail, return receipt requested, all other dealers in the line-make in the relevant market area. No such additional franchise may be established at the proposed site unless the Commissioner has determined, if requested by a dealer of the same line-make in the relevant market area within 30 days after receipt of the franchisor’s notice of intention to establish the additional franchise, and after a hearing on the matter, that there is reasonable evidence that after the grant of the new franchise, the market will support all of the dealers in that line-make in the relevant market area. Establishing a franchised dealer in a relevant market area to replace a franchised dealer that has not been in operation for more than two years shall constitute the establishment of a new franchise subject to the terms of this subdivision. The two-year period for replacing a franchised dealer shall begin on the day the franchise was terminated or, if a termination hearing was held, on the day the franchisor was legally permitted finally to terminate the franchise. This subdivision shall not apply to (i) the relocation of an existing dealer within that dealer’s relevant market area if the relocation site is to be more than 10 miles distant from any other dealer for the same line-make; (ii) the relocation of an existing dealer within that dealer’s relevant market area if the relocation site is to be more distant than the existing site from all other dealers of the same line-make in that relevant market area; or (iii) the relocation of an existing new motorcycle dealer within two miles of the existing site of the relocating dealer.","type":"section","prefixes":["5"],"prefix":"5","entire_prefix":"5","prefix_anchor":"5","level":1,"prior_prefix":"4","next_prefix":"6"},"6":{"id":237778,"text":"Except as otherwise provided in this subdivision and notwithstanding the terms of any franchise, to terminate, cancel, or refuse to renew the franchise of any dealer without good cause and unless (i) the dealer and the Commissioner have received written notice of the franchisor’s intentions at least 60 days prior to the effective date of such termination, cancellation, or the expiration date of the franchise, setting forth the specific grounds for the action, and (ii) the Commissioner has determined, if requested in writing by the dealer within the 60-day period, and after a hearing on the matter, that there is good cause for the termination, cancellation, or nonrenewal of the franchise. In any case where a petition is made to the Commissioner for a determination as to good cause for the termination, cancellation, or nonrenewal of a franchise, the franchise in question shall continue in effect pending the Commissioner’s decision or, if that decision is appealed to the circuit court, pending the decision of the circuit court. In any case in which a franchisor neither advises a dealer that it does not intend to renew a franchise nor takes any action to renew a franchise beyond its expiration date, the franchise in question shall continue in effect on the terms last agreed to by the parties. Notwithstanding the other provisions of this subdivision, notice of termination, cancellation, or nonrenewal may be provided to a dealer by a franchisor not less than 15 days prior to the effective date of such termination, cancellation, or nonrenewal when the grounds for such action are any of the following:\n\t\t\ta. Insolvency of the franchised motorcycle dealer or filing of any petition by or against the franchised motorcycle dealer, under any bankruptcy or receivership law, leading to liquidation or that is intended to lead to liquidation of the franchisee’s business;\n\t\t\tb. Failure of the franchised motorcycle dealer to conduct its customary sales and service operations during its posted business hours for seven consecutive business days, except where the failure results from acts of God or circumstances beyond the direct control of the franchised motorcycle dealer;\n\t\t\tc. Revocation of any license that the franchised motorcycle dealer is required to have to operate a dealership; or\n\t\t\td. Conviction of the dealer or any principal of the dealer of a felony.\n\t\t\tThe change or discontinuance of a marketing or distribution system of a particular line-make product by a manufacturer or distributor, while the name identification of the product is continued in substantial form by the same or different manufacturer or distributor, may be considered to be a franchise termination, cancellation, or nonrenewal. The provisions of this paragraph shall apply to changes and discontinuances made after January 1, 1989, but they shall not be considered by any court in any case in which such a change or discontinuance occurring prior to that date has been challenged as constituting a termination, cancellation, or nonrenewal.","type":"section","prefixes":["6"],"prefix":"6","entire_prefix":"6","prefix_anchor":"6","level":1,"prior_prefix":"5","next_prefix":"7"},"7":{"id":237779,"text":"To fail to provide continued parts and service support to a dealer that holds a franchise in a discontinued line-make for at least five years from the date of such discontinuance. This requirement shall not apply to a line-make that was discontinued prior to January 1, 1989.","type":"section","prefixes":["7"],"prefix":"7","entire_prefix":"7","prefix_anchor":"7","level":1,"prior_prefix":"6","next_prefix":"8"},"8":{"id":237780,"text":"To fail to allow a dealer the right at any time to designate a member of his family as a successor to the dealership in the event of the death or incapacity of the dealer. It shall be unlawful to prevent or refuse to honor the succession to a dealership by a member of the family of a deceased or incapacitated dealer if the franchisor has not provided to the member of the family previously designated by the dealer as his successor written notice of its objections to the succession and of such person’s right to seek a hearing on the matter before the Commissioner pursuant to this article, and the Commissioner determines, if requested in writing by such member of the family within 30 days of receipt of such notice from the franchisor, and after a hearing on the matter before the Commissioner pursuant to this article, that the failure to permit or honor the succession is unreasonable under the circumstances. No member of the family may succeed to a franchise unless (i) the franchisor has been given written notice as to the identity, financial ability, and qualifications of the member of the family in question and (ii) the succession to the franchise will not involve, without the franchisor’s consent, a relocation of the business.","type":"section","prefixes":["8"],"prefix":"8","entire_prefix":"8","prefix_anchor":"8","level":1,"prior_prefix":"7","next_prefix":"9"},"9":{"id":237781,"text":"To fail to ship monthly to any dealer, if ordered by the dealer, the number of new motorcycles of each make, series, and model needed by the dealer to receive a percentage of total new motorcycle sales of each make, series, and model equitably related to the total new motorcycle production or importation currently being achieved nationally by each make, series, and model covered under the franchise. Upon the written request of any dealer holding its sales or sales and service franchise, the manufacturer or distributor shall disclose to the dealer in writing the basis upon which new motorcycles are allocated, scheduled, and delivered to the dealers of the same line-make. If allocation is at issue in a request for a hearing, the dealer may demand the Commissioner to direct that the manufacturer or distributor provide to the dealer, within 30 days of such demand, all records of sales and all records of distribution of all motorcycles to the same line-make dealers who compete with the dealer requesting the hearing.","type":"section","prefixes":["9"],"prefix":"9","entire_prefix":"9","prefix_anchor":"9","level":1,"prior_prefix":"8","next_prefix":"10"},"10":{"id":237782,"text":"To require or otherwise coerce a dealer to underutilize the dealer’s facilities.","type":"section","prefixes":["10"],"prefix":"10","entire_prefix":"10","prefix_anchor":"10","level":1,"prior_prefix":"9","next_prefix":"11"},"11":{"id":237783,"text":"To include in any franchise with a motorcycle dealer terms that are contrary to, prohibited by, or otherwise inconsistent with the requirements of this chapter.","type":"section","prefixes":["11"],"prefix":"11","entire_prefix":"11","prefix_anchor":"11","level":1,"prior_prefix":"10","next_prefix":"12"},"12":{"id":237784,"text":"To require under any franchise agreement a motorcycle dealer to pay the attorney fees of the manufacturer or distributor related to hearings and appeals brought under this article.","type":"section","prefixes":["12"],"prefix":"12","entire_prefix":"12","prefix_anchor":"12","level":1,"prior_prefix":"11","next_prefix":"13"},"13":{"id":237785,"text":"To fail to include in any franchise with a motorcycle dealer the following language: “If any provision herein contravenes the laws or regulations of any state or other jurisdiction wherein this agreement is to be performed, or denies access to the procedures, forums, or remedies provided for by such laws or regulations, such provision shall be deemed to be modified to conform to such laws or regulations, and all other terms and provisions shall remain in full force,” or words to that effect.","type":"section","prefixes":["13"],"prefix":"13","entire_prefix":"13","prefix_anchor":"13","level":1,"prior_prefix":"12","next_prefix":"14"},"14":{"id":237786,"text":"To include in any franchise agreement with a motorcycle dealer terms that prohibit a motorcycle dealer from exercising his right to a trial by jury in any action where such right otherwise exists.","type":"section","prefixes":["14"],"prefix":"14","entire_prefix":"14","prefix_anchor":"14","level":1,"prior_prefix":"13"}},"ancestry":[{"id":13827,"edition_id":1,"name":"Motorcycle Franchises","identifier":"7.4","label":"article","depth":4,"order_by":1,"parent_id":13356,"metadata":{},"date_created":"2026-06-26 03:46:00","date_modified":"2026-06-26 03:46:00","permalink":{"id":231687,"object_type":"structure","relational_id":13827,"identifier":"7.4","token":"46.2\/IV\/15\/7.4","url":"\/46.2\/IV\/15\/7.4\/","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":75695,"structure_id":13827,"section_number":"46.2-1573.25","catch_line":"Motorcycle dealers filing of franchises","url":"\/46.2-1573.25\/","token":"46.2\/IV\/15\/7.4\/46.2-1573.25","metadata":false},{"id":76324,"structure_id":13827,"section_number":"46.2-1573.26","catch_line":"Exemption of franchises from Retail Franchising Act","url":"\/46.2-1573.26\/","token":"46.2\/IV\/15\/7.4\/46.2-1573.26","metadata":false},{"id":65895,"structure_id":13827,"section_number":"46.2-1573.27","catch_line":"Coercion of retail dealer by manufacturer or distributor with respect to retail installment sales contracts and extended warranties prohibited; penalty","url":"\/46.2-1573.27\/","token":"46.2\/IV\/15\/7.4\/46.2-1573.27","metadata":false},{"id":65405,"structure_id":13827,"section_number":"46.2-1573.28","catch_line":"Other coercion of dealers; transfer, grant, succession to and cancellation of dealer franchises; delivery of motorcycles, parts, and accessories","url":"\/46.2-1573.28\/","token":"46.2\/IV\/15\/7.4\/46.2-1573.28","metadata":false},{"id":54842,"structure_id":13827,"section_number":"46.2-1573.29","catch_line":"When discontinuation, cancellation, or nonrenewal of franchise unfair","url":"\/46.2-1573.29\/","token":"46.2\/IV\/15\/7.4\/46.2-1573.29","metadata":false},{"id":64680,"structure_id":13827,"section_number":"46.2-1573.30","catch_line":"Repurchase of vehicles, parts, and equipment in the event of involuntary discontinuation, cancellation, or nonrenewal of franchise agreement","url":"\/46.2-1573.30\/","token":"46.2\/IV\/15\/7.4\/46.2-1573.30","metadata":false},{"id":80004,"structure_id":13827,"section_number":"46.2-1573.31","catch_line":"Manufacturer or distributor right of first refusal","url":"\/46.2-1573.31\/","token":"46.2\/IV\/15\/7.4\/46.2-1573.31","metadata":false},{"id":65676,"structure_id":13827,"section_number":"46.2-1573.32","catch_line":"Discontinuation of distributors","url":"\/46.2-1573.32\/","token":"46.2\/IV\/15\/7.4\/46.2-1573.32","metadata":false},{"id":77144,"structure_id":13827,"section_number":"46.2-1573.33","catch_line":"Warranty obligations","url":"\/46.2-1573.33\/","token":"46.2\/IV\/15\/7.4\/46.2-1573.33","metadata":false},{"id":80513,"structure_id":13827,"section_number":"46.2-1573.34","catch_line":"Operation of dealership by manufacturer","url":"\/46.2-1573.34\/","token":"46.2\/IV\/15\/7.4\/46.2-1573.34","metadata":false},{"id":85331,"structure_id":13827,"section_number":"46.2-1573.35","catch_line":"Ownership of service facilities","url":"\/46.2-1573.35\/","token":"46.2\/IV\/15\/7.4\/46.2-1573.35","metadata":false},{"id":73753,"structure_id":13827,"section_number":"46.2-1573.36","catch_line":"Hearings and other remedies; civil penalties","url":"\/46.2-1573.36\/","token":"46.2\/IV\/15\/7.4\/46.2-1573.36","metadata":false},{"id":63469,"structure_id":13827,"section_number":"46.2-1573.37","catch_line":"Late model and factory repurchase franchises","url":"\/46.2-1573.37\/","token":"46.2\/IV\/15\/7.4\/46.2-1573.37","metadata":false}],"previous_section":{"id":65895,"structure_id":13827,"section_number":"46.2-1573.27","catch_line":"Coercion of retail dealer by manufacturer or distributor with respect to retail installment sales contracts and extended warranties prohibited; penalty","url":"\/46.2-1573.27\/","token":"46.2\/IV\/15\/7.4\/46.2-1573.27","metadata":false},"next_section":{"id":54842,"structure_id":13827,"section_number":"46.2-1573.29","catch_line":"When discontinuation, cancellation, or nonrenewal of franchise unfair","url":"\/46.2-1573.29\/","token":"46.2\/IV\/15\/7.4\/46.2-1573.29","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/46.2-1573.28\/","history_text":"

This law was first created in 1996. The record of its establishment is cataloged in chapters 1043<\/a> and 1052<\/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 3 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 1997, chapter 802<\/a>; in 2010, chapter 610<\/a>; in 2015, chapter 615<\/a>.<\/p>","references":[{"id":73753,"section_number":"46.2-1573.36","catch_line":"Hearings and other remedies; civil penalties","order_by":null,"url":"\/46.2-1573.36\/"}],"refers_to":false,"permalink":{"id":231701,"object_type":"law","relational_id":65405,"identifier":"46.2-1573.28","token":"46.2\/IV\/15\/7.4\/46.2-1573.28","url":"\/46.2-1573.28\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/46.2-1573.28\/","token":"46.2\/IV\/15\/7.4\/46.2-1573.28","dublin_core":{"Title":"Other coercion of dealers; transfer, grant, succession to and cancellation of dealer franchises; delivery of motorcycles, parts, and accessories","Type":"Text","Format":"text\/html","Identifier":"\u00a7 46.2-1573.28","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

It shall be unlawful for any manufacturer<\/span>, factory branch<\/span>, distributor, or distributor branch<\/span>, or any field representative, officer, agent<\/span>, or their representatives:<\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> To coerce or attempt to coerce any dealer<\/span> to accept delivery of any motorcycle<\/span> or motorcycles<\/span>, parts or accessories therefor, or any other commodities that have not been ordered by the dealer<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> To coerce or attempt to coerce any dealer<\/span> to enter into an agreement with the manufacturer<\/span>, factory branch<\/span>, distributor, or distributor branch<\/span>, or representative thereof, or do any other act unfair to the dealer<\/span>, by threatening to cancel<\/span> any franchise<\/span> existing between the manufacturer<\/span>, factory branch<\/span>, distributor, distributor branch<\/span>, or representative thereof and the dealer<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> To coerce or attempt to coerce any dealer<\/span> to join, contribute to, or affiliate<\/span> with any advertising association. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> To prevent or refuse to approve the sale or transfer of the ownership of a dealership by the sale of the business, stock transfer, or otherwise, or the transfer, sale, or assignment of a dealer<\/span> franchise<\/span>, or a change in the executive management or principal operator<\/span> of the dealership, unless the franchisor provides written notice to the dealer<\/span> of its objection and the reasons therefor at least 30 days prior to the proposed effective date of the transfer, sale, assignment, or change. No such objection shall be effective to prevent the sale, transfer, assignment, or change if the Commissioner<\/span> has determined, if requested in writing by the dealer<\/span> within 30 days after receipt of an objection to the proposed sale, transfer, or change, and after a hearing<\/span> on the matter, that the failure to permit or honor the sale, transfer, assignment, or change is unreasonable under the circumstances. No franchise<\/span> may be sold, assigned, or transferred unless (i) the franchisor has been given at least 90 days’ prior written notice by the dealer<\/span> as to the identity, financial ability, and qualifications of the proposed transferee and (ii) the sale or transfer of the franchise<\/span> and business will not involve, without the franchisor’s consent, a relocation of the business. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> To grant an additional franchise<\/span> for a particular line-make<\/span> of motorcycle<\/span> in a relevant market area<\/span> in which a dealer or dealers<\/span> in that line-make<\/span> are already located unless the franchisor has first advised in writing, by certified mail, return receipt requested, all other dealers<\/span> in the line-make<\/span> in the relevant market area<\/span>. No such additional franchise<\/span> may be established at the proposed site unless the Commissioner<\/span> has determined, if requested by a dealer of the same line-make<\/span> in the relevant market area<\/span> within 30 days after receipt of the franchisor’s notice of intention to establish the additional franchise<\/span>, and after a hearing<\/span> on the matter, that there is reasonable evidence<\/span> that after the grant of the new<\/span> franchise<\/span>, the market will support all of the dealers<\/span> in that line-make<\/span> in the relevant market area<\/span>. Establishing a franchised dealer<\/span> in a relevant market area<\/span> to replace a franchised dealer<\/span> that has not been in operation for more than two years shall constitute the establishment of a new<\/span> franchise<\/span> subject to the terms of this subdivision. The two-year period for replacing a franchised dealer<\/span> shall begin on the day the franchise<\/span> was terminated or, if a termination hearing<\/span> was held, on the day the franchisor was legally permitted finally to terminate the franchise<\/span>. This subdivision shall not apply to (i) the relocation of an existing dealer within that dealer’s relevant market area<\/span> if the relocation site is to be more than 10 miles distant from any other dealer for the same line-make<\/span>; (ii) the relocation of an existing dealer within that dealer’s relevant market area<\/span> if the relocation site is to be more distant than the existing site from all other dealers<\/span> of the same line-make<\/span> in that relevant market area<\/span>; or (iii) the relocation of an existing new<\/span> motorcycle<\/span> dealer within two miles of the existing site of the relocating dealer. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Except as otherwise provided in this subdivision and notwithstanding the terms of any franchise<\/span>, to terminate, cancel<\/span>, or refuse to renew the franchise<\/span> of any dealer without good cause and unless (i) the dealer and the Commissioner<\/span> have received written notice of the franchisor’s intentions at least 60 days prior to the effective date of such termination, cancellation<\/span>, or the expiration date of the franchise<\/span>, setting forth the specific grounds for the action, and (ii) the Commissioner<\/span> has determined, if requested in writing by the dealer within the 60-day period, and after a hearing<\/span> on the matter, that there is good cause for the termination, cancellation<\/span>, or nonrenewal of the franchise<\/span>. In any case where a petition<\/span> is made to the Commissioner<\/span> for a determination as to good cause for the termination, cancellation<\/span>, or nonrenewal of a franchise<\/span>, the franchise<\/span> in question shall continue in effect pending the Commissioner<\/span>’s decision or, if that decision is appealed to the circuit<\/span> court<\/span>, pending the decision of the circuit<\/span> court<\/span>. In any case in which a franchisor neither advises a dealer that it does not intend to renew a franchise<\/span> nor takes any action to renew a franchise<\/span> beyond its expiration date, the franchise<\/span> in question shall continue in effect on the terms last agreed to by the parties. Notwithstanding the other provisions of this subdivision, notice of termination, cancellation<\/span>, or nonrenewal may be provided to a dealer by a franchisor not less than 15 days prior to the effective date of such termination, cancellation<\/span>, or nonrenewal when the grounds for such action are any of the following:\n\t\t\ta. Insolvency of the franchised motorcycle<\/span> dealer or filing of any petition<\/span> by or against the franchised motorcycle<\/span> dealer, under any bankruptcy<\/span> or receivership law<\/span>, leading to liquidation<\/span> or that is intended to lead to liquidation<\/span> of the franchisee’s business;\n\t\t\tb. Failure of the franchised motorcycle<\/span> dealer to conduct its customary sales and service operations during its posted business hours for seven consecutive business days, except where the failure results from acts of God or circumstances beyond the direct control of the franchised motorcycle<\/span> dealer;\n\t\t\tc. Revocation<\/span> of any license that the franchised motorcycle<\/span> dealer is required to have to operate a dealership; or\n\t\t\td. Conviction<\/span> of the dealer or any principal of the dealer of a felony<\/span>.\n\t\t\tThe change or discontinuance of a marketing or distribution system of a particular line-make<\/span> product by a manufacturer<\/span> or distributor, while the name identification of the product is continued in substantial form by the same or different manufacturer<\/span> or distributor, may be considered to be a franchise<\/span> termination, cancellation<\/span>, or nonrenewal. The provisions of this paragraph shall apply to changes and discontinuances made after January 1, 1989, but they shall not be considered by any court<\/span> in any case in which such a change or discontinuance occurring prior to that date has been challenged as constituting a termination, cancellation<\/span>, or nonrenewal. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> To fail to provide continued parts and service support to a dealer that holds a franchise<\/span> in a discontinued line-make<\/span> for at least five years from the date of such discontinuance. This requirement shall not apply to a line-make<\/span> that was discontinued prior to January 1, 1989. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> To fail to allow a dealer the right at any time to designate a member of his family as a successor to the dealership in the event of the death or incapacity of the dealer. It shall be unlawful to prevent or refuse to honor the succession to a dealership by a member of the family of a deceased or incapacitated dealer if the franchisor has not provided to the member of the family previously designated by the dealer as his successor written notice of its objections to the succession and of such person’s right to seek a hearing<\/span> on the matter before the Commissioner<\/span> pursuant to this article, and the Commissioner<\/span> determines, if requested in writing by such member of the family within 30 days of receipt of such notice from the franchisor, and after a hearing<\/span> on the matter before the Commissioner<\/span> pursuant to this article, that the failure to permit or honor the succession is unreasonable under the circumstances. No member of the family may succeed to a franchise<\/span> unless (i) the franchisor has been given written notice as to the identity, financial ability, and qualifications of the member of the family in question and (ii) the succession to the franchise<\/span> will not involve, without the franchisor’s consent, a relocation of the business. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

9.<\/span> To fail to ship monthly to any dealer, if ordered by the dealer, the number of new<\/span> motorcycles<\/span> of each make, series, and model needed by the dealer to receive a percentage of total new<\/span> motorcycle<\/span> sales of each make, series, and model equitably related to the total new<\/span> motorcycle<\/span> production or importation currently being achieved nationally by each make, series, and model covered under the franchise<\/span>. Upon the written request of any dealer holding its sales or sales and service franchise<\/span>, the manufacturer<\/span> or distributor shall disclose to the dealer in writing the basis upon which new<\/span> motorcycles<\/span> are allocated, scheduled, and delivered to the dealers<\/span> of the same line-make<\/span>. If allocation is at issue<\/span> in a request for a hearing<\/span>, the dealer may demand the Commissioner<\/span> to direct that the manufacturer<\/span> or distributor provide to the dealer, within 30 days of such demand, all records of sales and all records of distribution of all motorcycles<\/span> to the same line-make<\/span> dealers<\/span> who compete with the dealer requesting the hearing<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

10.<\/span> To require or otherwise coerce a dealer to underutilize the dealer’s facilities. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

11.<\/span> To include in any franchise<\/span> with a motorcycle<\/span> dealer terms that are contrary to, prohibited by, or otherwise inconsistent with the requirements of this chapter. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

12.<\/span> To require under any franchise<\/span> agreement a motorcycle<\/span> dealer to pay the attorney fees of the manufacturer<\/span> or distributor related to hearings<\/span> and appeals<\/span> brought under this article. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

13.<\/span> To fail to include in any franchise<\/span> with a motorcycle<\/span> dealer the following language: “If any provision herein contravenes the laws<\/span> or regulations of any state or other jurisdiction<\/span> wherein this agreement is to be performed, or denies access to the procedures, forums, or remedies provided for by such laws<\/span> or regulations, such provision shall be deemed to be modified to conform to such laws<\/span> or regulations, and all other terms and provisions shall remain in full force,” or words to that effect. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

14.<\/span> To include in any franchise<\/span> agreement with a motorcycle<\/span> dealer terms that prohibit a motorcycle<\/span> dealer from exercising his right to a trial<\/span> by jury<\/span> in any action where such right otherwise exists. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nOTHER COERCION OF DEALERS; TRANSFER, GRANT, SUCCESSION TO AND CANCELLATION OF\nDEALER FRANCHISES; DELIVERY OF MOTORCYCLES, PARTS, AND ACCESSORIES (\u00a7\n46.2-1573.28)\n\nIt shall be unlawful for any manufacturer, factory branch, distributor, or\ndistributor branch, or any field representative, officer, agent, or their\nrepresentatives:\n\n1. To coerce or attempt to coerce any dealer to accept delivery of any\nmotorcycle or motorcycles, parts or accessories therefor, or any other\ncommodities that have not been ordered by the dealer.\n\n2. To coerce or attempt to coerce any dealer to enter into an agreement with the\nmanufacturer, factory branch, distributor, or distributor branch, or\nrepresentative thereof, or do any other act unfair to the dealer, by threatening\nto cancel any franchise existing between the manufacturer, factory branch,\ndistributor, distributor branch, or representative thereof and the dealer.\n\n3. To coerce or attempt to coerce any dealer to join, contribute to, or\naffiliate with any advertising association.\n\n4. To prevent or refuse to approve the sale or transfer of the ownership of a\ndealership by the sale of the business, stock transfer, or otherwise, or the\ntransfer, sale, or assignment of a dealer franchise, or a change in the\nexecutive management or principal operator of the dealership, unless the\nfranchisor provides written notice to the dealer of its objection and the\nreasons therefor at least 30 days prior to the proposed effective date of the\ntransfer, sale, assignment, or change. No such objection shall be effective to\nprevent the sale, transfer, assignment, or change if the Commissioner has\ndetermined, if requested in writing by the dealer within 30 days after receipt\nof an objection to the proposed sale, transfer, or change, and after a hearing\non the matter, that the failure to permit or honor the sale, transfer,\nassignment, or change is unreasonable under the circumstances. No franchise may\nbe sold, assigned, or transferred unless (i) the franchisor has been given at\nleast 90 days’ prior written notice by the dealer as to the identity,\nfinancial ability, and qualifications of the proposed transferee and (ii) the\nsale or transfer of the franchise and business will not involve, without the\nfranchisor’s consent, a relocation of the business.\n\n5. To grant an additional franchise for a particular line-make of motorcycle in\na relevant market area in which a dealer or dealers in that line-make are\nalready located unless the franchisor has first advised in writing, by certified\nmail, return receipt requested, all other dealers in the line-make in the\nrelevant market area. No such additional franchise may be established at the\nproposed site unless the Commissioner has determined, if requested by a dealer\nof the same line-make in the relevant market area within 30 days after receipt\nof the franchisor’s notice of intention to establish the additional\nfranchise, and after a hearing on the matter, that there is reasonable evidence\nthat after the grant of the new franchise, the market will support all of the\ndealers in that line-make in the relevant market area. Establishing a franchised\ndealer in a relevant market area to replace a franchised dealer that has not\nbeen in operation for more than two years shall constitute the establishment of\na new franchise subject to the terms of this subdivision. The two-year period\nfor replacing a franchised dealer shall begin on the day the franchise was\nterminated or, if a termination hearing was held, on the day the franchisor was\nlegally permitted finally to terminate the franchise. This subdivision shall not\napply to (i) the relocation of an existing dealer within that dealer’s\nrelevant market area if the relocation site is to be more than 10 miles distant\nfrom any other dealer for the same line-make; (ii) the relocation of an existing\ndealer within that dealer’s relevant market area if the relocation site is\nto be more distant than the existing site from all other dealers of the same\nline-make in that relevant market area; or (iii) the relocation of an existing\nnew motorcycle dealer within two miles of the existing site of the relocating\ndealer.\n\n6. Except as otherwise provided in this subdivision and notwithstanding the\nterms of any franchise, to terminate, cancel, or refuse to renew the franchise\nof any dealer without good cause and unless (i) the dealer and the Commissioner\nhave received written notice of the franchisor’s intentions at least 60\ndays prior to the effective date of such termination, cancellation, or the\nexpiration date of the franchise, setting forth the specific grounds for the\naction, and (ii) the Commissioner has determined, if requested in writing by the\ndealer within the 60-day period, and after a hearing on the matter, that there\nis good cause for the termination, cancellation, or nonrenewal of the franchise.\nIn any case where a petition is made to the Commissioner for a determination as\nto good cause for the termination, cancellation, or nonrenewal of a franchise,\nthe franchise in question shall continue in effect pending the\nCommissioner’s decision or, if that decision is appealed to the circuit\ncourt, pending the decision of the circuit court. In any case in which a\nfranchisor neither advises a dealer that it does not intend to renew a franchise\nnor takes any action to renew a franchise beyond its expiration date, the\nfranchise in question shall continue in effect on the terms last agreed to by\nthe parties. Notwithstanding the other provisions of this subdivision, notice of\ntermination, cancellation, or nonrenewal may be provided to a dealer by a\nfranchisor not less than 15 days prior to the effective date of such\ntermination, cancellation, or nonrenewal when the grounds for such action are\nany of the following:\n\t\t\ta. Insolvency of the franchised motorcycle dealer or filing of any petition\nby or against the franchised motorcycle dealer, under any bankruptcy or\nreceivership law, leading to liquidation or that is intended to lead to\nliquidation of the franchisee’s business;\n\t\t\tb. Failure of the franchised motorcycle dealer to conduct its customary sales\nand service operations during its posted business hours for seven consecutive\nbusiness days, except where the failure results from acts of God or\ncircumstances beyond the direct control of the franchised motorcycle dealer;\n\t\t\tc. Revocation of any license that the franchised motorcycle dealer is\nrequired to have to operate a dealership; or\n\t\t\td. Conviction of the dealer or any principal of the dealer of a felony.\n\t\t\tThe change or discontinuance of a marketing or distribution system of a\nparticular line-make product by a manufacturer or distributor, while the name\nidentification of the product is continued in substantial form by the same or\ndifferent manufacturer or distributor, may be considered to be a franchise\ntermination, cancellation, or nonrenewal. The provisions of this paragraph shall\napply to changes and discontinuances made after January 1, 1989, but they shall\nnot be considered by any court in any case in which such a change or\ndiscontinuance occurring prior to that date has been challenged as constituting\na termination, cancellation, or nonrenewal.\n\n7. To fail to provide continued parts and service support to a dealer that holds\na franchise in a discontinued line-make for at least five years from the date of\nsuch discontinuance. This requirement shall not apply to a line-make that was\ndiscontinued prior to January 1, 1989.\n\n8. To fail to allow a dealer the right at any time to designate a member of his\nfamily as a successor to the dealership in the event of the death or incapacity\nof the dealer. It shall be unlawful to prevent or refuse to honor the succession\nto a dealership by a member of the family of a deceased or incapacitated dealer\nif the franchisor has not provided to the member of the family previously\ndesignated by the dealer as his successor written notice of its objections to\nthe succession and of such person’s right to seek a hearing on the matter\nbefore the Commissioner pursuant to this article, and the Commissioner\ndetermines, if requested in writing by such member of the family within 30 days\nof receipt of such notice from the franchisor, and after a hearing on the matter\nbefore the Commissioner pursuant to this article, that the failure to permit or\nhonor the succession is unreasonable under the circumstances. No member of the\nfamily may succeed to a franchise unless (i) the franchisor has been given\nwritten notice as to the identity, financial ability, and qualifications of the\nmember of the family in question and (ii) the succession to the franchise will\nnot involve, without the franchisor’s consent, a relocation of the\nbusiness.\n\n9. To fail to ship monthly to any dealer, if ordered by the dealer, the number\nof new motorcycles of each make, series, and model needed by the dealer to\nreceive a percentage of total new motorcycle sales of each make, series, and\nmodel equitably related to the total new motorcycle production or importation\ncurrently being achieved nationally by each make, series, and model covered\nunder the franchise. Upon the written request of any dealer holding its sales or\nsales and service franchise, the manufacturer or distributor shall disclose to\nthe dealer in writing the basis upon which new motorcycles are allocated,\nscheduled, and delivered to the dealers of the same line-make. If allocation is\nat issue in a request for a hearing, the dealer may demand the Commissioner to\ndirect that the manufacturer or distributor provide to the dealer, within 30\ndays of such demand, all records of sales and all records of distribution of all\nmotorcycles to the same line-make dealers who compete with the dealer requesting\nthe hearing.\n\n10. To require or otherwise coerce a dealer to underutilize the dealer’s\nfacilities.\n\n11. To include in any franchise with a motorcycle dealer terms that are contrary\nto, prohibited by, or otherwise inconsistent with the requirements of this\nchapter.\n\n12. To require under any franchise agreement a motorcycle dealer to pay the\nattorney fees of the manufacturer or distributor related to hearings and appeals\nbrought under this article.\n\n13. To fail to include in any franchise with a motorcycle dealer the following\nlanguage: “If any provision herein contravenes the laws or regulations of\nany state or other jurisdiction wherein this agreement is to be performed, or\ndenies access to the procedures, forums, or remedies provided for by such laws\nor regulations, such provision shall be deemed to be modified to conform to such\nlaws or regulations, and all other terms and provisions shall remain in full\nforce,” or words to that effect.\n\n14. To include in any franchise agreement with a motorcycle dealer terms that\nprohibit a motorcycle dealer from exercising his right to a trial by jury in any\naction where such right otherwise exists.\n\nHISTORY: 1996, cc. 1043, 1052, \u00a7 46.2-1993.67; 1997, c. 802; 2010, c. 610;\n2015, c. 615.","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}}