{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/46.2-1573.8.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/46.2-1573.8.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/46.2-1573.8.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/46.2-1573.8.html"}],"law_id":75261,"edition_id":1,"section_id":75261,"structure_id":14812,"section_number":"46.2-1573.8","catch_line":"Warranty obligations","history":"1995, cc. 767, 816, \u00a7 46.2-1979; 1996, cc. 453, 1043, 1052; 2015, c. 615.","full_text":"A\n\nEach recreational vehicle manufacturer, factory branch, distributor, or distributor branch shall (i) specify in writing to each of its recreational vehicle dealers licensed in the Commonwealth the dealer’s obligations for preparation, delivery, and warranty service on its products and (ii) compensate the dealer for warranty parts, service, and diagnostic work required of the dealer by the manufacturer or distributor as follows:1\n\nCompensation of a dealer for warranty parts, service, and diagnostic work shall not be less than the amounts charged by the dealer for the manufacturer’s or distributor’s original parts, service, and diagnostic work to retail customers for nonwarranty service, parts, and diagnostic work installed or performed in the dealer’s service department unless the amounts are not reasonable;2\n\nFor purposes of determining warranty parts and service compensation, menu-priced parts or services, group discounts, special event discounts, and special event promotions shall not be considered in determining amounts charged by the dealer to retail customers;3\n\nIncreases in dealer warranty parts and service compensation and diagnostic work compensation, pursuant to this section, shall be requested by the dealer in writing, shall be based on 100 consecutive repair orders or all repair orders over a 90-day period, whichever occurs first, and, in the case of parts, shall be stated as a percentage of markup that shall be uniformly applied to all the manufacturer’s or distributor’s parts;4\n\nIn the case of warranty parts compensation, the provisions of this subsection shall be effective only for model year 1992 and succeeding model years;5\n\nIf a manufacturer or distributor furnishes a part to a dealer at no cost for use by the dealer in performing work for which the manufacturer or distributor is required to compensate the dealer under this section, the manufacturer or distributor shall compensate the dealer for the part in the same manner as warranty parts compensation, less the wholesale costs, for such part as listed in the manufacturer’s current price schedules. A manufacturer or distributor may pay the dealer a reasonable handling fee instead of the compensation otherwise required by this subsection for special high-performance complete engine assemblies in limited production recreational vehicles that constitute less than five percent of model production furnished to the dealer at no cost, if the manufacturer or distributor excludes such special high-performance complete engine assemblies in determining whether the amounts requested by the dealer for warranty compensation are consistent with the amounts that the dealer charges its other retail service customers for parts used by the dealer to perform similar work; or6\n\nIn the case of service work, manufacturer original parts or parts otherwise specified by the manufacturer or distributor, and parts provided by a dealer either pursuant to an adjustment program as defined in § 59.1-207.34 or as otherwise requested by the manufacturer or distributor, the dealer shall be compensated in the same manner as for warranty service or parts.\n\t\t\t\tThis section does not apply to compensation for parts such as components, systems, fixtures, appliances, furnishings, accessories, and features that are designed, used, and maintained primarily for nonvehicular, residential purposes. Warranty audits of dealer records may be conducted by the manufacturer, factory branch, distributor, or distributor branch on a reasonable basis, and dealer claims for warranty compensation shall not be denied except for good cause, such as performance of nonwarranty repairs, lack of material documentation, fraud, or misrepresentation. Claims for dealer compensation shall be paid within 30 days of dealer submission or within 30 days of the end of an incentive program or rejected in writing for stated reasons. The manufacturer, factory branch, distributor, or distributor branch shall reserve the right to reasonable periodic audits to determine the validity of all such paid claims for dealer compensation. Any chargebacks for warranty parts or service compensation and service incentives shall only be for the 12-month period immediately following the date of the claim and, in the case of chargebacks for sales compensation only, for the 18-month period immediately following the date of claim. However, such limitations shall not be effective in the case of intentionally false or fraudulent claims.B\n\nIt shall be unlawful for any recreational vehicle manufacturer, factory branch, distributor, or distributor branch to:1\n\nFail to perform any of its warranty obligations, including tires, with respect to a recreational vehicle;2\n\nFail to assume all responsibility for any liability resulting from structural or production defects;3\n\nFail to include in written notices of factory recalls to recreational vehicle owners and dealers the expected date by which necessary parts and equipment will be available to dealers for the correction of defects;4\n\nFail to compensate any of the recreational vehicle dealers licensed in the Commonwealth for repairs effected by the dealer of merchandise damaged in manufacture or transit to the dealer where the carrier is designated by the manufacturer, factory branch, distributor, or distributor branch;5\n\nFail to compensate its recreational vehicle dealers licensed in the Commonwealth for warranty parts, work, and service pursuant to subsection A or for legal costs and expenses incurred by such dealers in connection with warranty obligations for which the manufacturer, factory branch, distributor, or distributor branch is legally responsible or that the manufacturer, factory branch, distributor, or distributor branch imposes upon the dealer;6\n\nMisrepresent in any way to purchasers of recreational vehicles that warranties with respect to the manufacture, performance, or design of the recreational vehicle are made by the dealer, either as warrantor or co-warrantor;7\n\nRequire the dealer to make warranties to customers in any manner related to the manufacture, performance, or design of the recreational vehicle; or8\n\nShift or attempt to shift to the recreational vehicle dealer, directly or indirectly, any liabilities of the manufacturer, factory branch, distributor, or distributor branch under the Virginia Motor Vehicle Warranty Enforcement Act (§ 59.1-207.9 et seq.), unless such liability results from the act or omission by the dealer.C\n\nNotwithstanding the terms of any franchise, it shall be unlawful for any recreational vehicle manufacturer, factory branch, distributor, or distributor branch to fail to indemnify and hold harmless its recreational vehicle dealers against any losses or damages arising out of complaints, claims, or suits relating to the manufacture, assembly, or design of recreational vehicles, parts, or accessories, or other functions by the manufacturer, factory branch, distributor, or distributor branch beyond the control of the dealer, including, without limitation, the selection by the manufacturer, factory branch, distributor, or distributor branch of parts or components for the recreational vehicle or any damages to merchandise occurring in transit to the dealer where the carrier is designated by the manufacturer, factory branch, distributor, or distributor branch. The dealer shall notify the manufacturer of pending suits in which allegations are made that come within this subsection whenever reasonably practicable to do so. Every recreational vehicle dealer franchise issued to, amended, or renewed for recreational vehicle dealers in the Commonwealth shall be construed to incorporate provisions consistent with the requirements of this subsection.D\n\nOn any new recreational vehicle, any uncorrected damage or any corrected damage exceeding three percent of the manufacturer’s or distributor’s suggested retail price as defined in 15 U.S.C. \u00a7\u00a7 1231-1233, as measured by retail repair costs, must be disclosed to the dealer in writing prior to delivery. Factory mechanical repair and damage to glass, tires, and bumpers are excluded from the three percent rule when properly replaced by identical manufacturer’s or distributor’s original equipment or parts. Whenever a new recreational vehicle is damaged in transit, when the carrier or means of transportation is determined by the manufacturer or distributor, or whenever a recreational vehicle is otherwise damaged prior to delivery to the new recreational vehicle dealer, the new recreational vehicle dealer shall:1\n\nNotify the manufacturer or distributor of the damage within three business days from the date of delivery of the new recreational vehicle to the new recreational vehicle dealership or within the additional time specified in the franchise; and2\n\nRequest from the manufacturer or distributor authorization to replace the components, parts, and accessories damaged or otherwise correct the damage, unless the damage to the recreational vehicle exceeds the three percent rule, in which case the dealer may reject the vehicle within three business days.E\n\nIf the manufacturer or distributor refuses or fails to authorize correction of such damage within 10 days after receipt of notification, or if the dealer rejects the recreational vehicle because damage exceeds the three percent rule, ownership of the new recreational vehicle shall revert to the manufacturer or distributor, and the new recreational vehicle dealer shall have no obligation, financial or otherwise, with respect to such recreational vehicle. Should either the manufacturer, distributor, or the dealer elect to correct the damage or any other damage exceeding the three percent rule, full disclosure shall be made by the dealer in writing to the buyer and an acknowledgment by the buyer is required. If there is less than three percent damage, no disclosure is required, provided that the damage has been corrected. Predelivery mechanical work shall not require a disclosure. Failure to disclose any corrected damage within the knowledge of the selling dealer to a new recreational vehicle in excess of the three percent rule shall constitute grounds for revocation of the buyer order, provided that, within 30 days of purchase, the recreational vehicle is returned to the dealer with an accompanying written notice of the grounds for revocation. In case of revocation pursuant to this section, the dealer shall accept the recreational vehicle and refund any payments made to the dealer in connection with the transaction, less a reasonable allowance for the consumer’s use of the vehicle as defined in § 59.1-207.11.F\n\nIf there is a dispute between the manufacturer, factory branch, distributor, or distributor branch and the dealer with respect to any matter referred to in subsection A, B, or C, either party may petition the Commissioner in writing, within 30 days after either party has given written notice of the dispute to the other, for a hearing. The decision of the Commissioner shall be binding on the parties, subject to rights of judicial review and appeal as provided in the Administrative Process Act (§ 2.2-4000 et seq.). However, nothing contained in this section shall give the Commissioner any authority as to the content or interpretation of any manufacturer’s or distributor’s warranty.","order_by":null,"text":{"0":{"id":270244,"text":"Each recreational vehicle manufacturer, factory branch, distributor, or distributor branch shall (i) specify in writing to each of its recreational vehicle dealers licensed in the Commonwealth the dealer’s obligations for preparation, delivery, and warranty service on its products and (ii) compensate the dealer for warranty parts, service, and diagnostic work required of the dealer by the manufacturer or distributor as follows:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":270245,"text":"Compensation of a dealer for warranty parts, service, and diagnostic work shall not be less than the amounts charged by the dealer for the manufacturer’s or distributor’s original parts, service, and diagnostic work to retail customers for nonwarranty service, parts, and diagnostic work installed or performed in the dealer’s service department unless the amounts are not reasonable;","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":270246,"text":"For purposes of determining warranty parts and service compensation, menu-priced parts or services, group discounts, special event discounts, and special event promotions shall not be considered in determining amounts charged by the dealer to retail customers;","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":270247,"text":"Increases in dealer warranty parts and service compensation and diagnostic work compensation, pursuant to this section, shall be requested by the dealer in writing, shall be based on 100 consecutive repair orders or all repair orders over a 90-day period, whichever occurs first, and, in the case of parts, shall be stated as a percentage of markup that shall be uniformly applied to all the manufacturer’s or distributor’s parts;","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"A4"},"4":{"id":270248,"text":"In the case of warranty parts compensation, the provisions of this subsection shall be effective only for model year 1992 and succeeding model years;","type":"section","prefixes":["A","4"],"prefix":"4","entire_prefix":"A4","prefix_anchor":"A4","level":2,"prior_prefix":"A3","next_prefix":"A5"},"5":{"id":270249,"text":"If a manufacturer or distributor furnishes a part to a dealer at no cost for use by the dealer in performing work for which the manufacturer or distributor is required to compensate the dealer under this section, the manufacturer or distributor shall compensate the dealer for the part in the same manner as warranty parts compensation, less the wholesale costs, for such part as listed in the manufacturer’s current price schedules. A manufacturer or distributor may pay the dealer a reasonable handling fee instead of the compensation otherwise required by this subsection for special high-performance complete engine assemblies in limited production recreational vehicles that constitute less than five percent of model production furnished to the dealer at no cost, if the manufacturer or distributor excludes such special high-performance complete engine assemblies in determining whether the amounts requested by the dealer for warranty compensation are consistent with the amounts that the dealer charges its other retail service customers for parts used by the dealer to perform similar work; or","type":"section","prefixes":["A","5"],"prefix":"5","entire_prefix":"A5","prefix_anchor":"A5","level":2,"prior_prefix":"A4","next_prefix":"A6"},"6":{"id":270250,"text":"In the case of service work, manufacturer original parts or parts otherwise specified by the manufacturer or distributor, and parts provided by a dealer either pursuant to an adjustment program as defined in § 59.1-207.34 or as otherwise requested by the manufacturer or distributor, the dealer shall be compensated in the same manner as for warranty service or parts.\n\t\t\t\tThis section does not apply to compensation for parts such as components, systems, fixtures, appliances, furnishings, accessories, and features that are designed, used, and maintained primarily for nonvehicular, residential purposes. Warranty audits of dealer records may be conducted by the manufacturer, factory branch, distributor, or distributor branch on a reasonable basis, and dealer claims for warranty compensation shall not be denied except for good cause, such as performance of nonwarranty repairs, lack of material documentation, fraud, or misrepresentation. Claims for dealer compensation shall be paid within 30 days of dealer submission or within 30 days of the end of an incentive program or rejected in writing for stated reasons. The manufacturer, factory branch, distributor, or distributor branch shall reserve the right to reasonable periodic audits to determine the validity of all such paid claims for dealer compensation. Any chargebacks for warranty parts or service compensation and service incentives shall only be for the 12-month period immediately following the date of the claim and, in the case of chargebacks for sales compensation only, for the 18-month period immediately following the date of claim. However, such limitations shall not be effective in the case of intentionally false or fraudulent claims.","type":"section","prefixes":["A","6"],"prefix":"6","entire_prefix":"A6","prefix_anchor":"A6","level":2,"prior_prefix":"A5","next_prefix":"B"},"7":{"id":270251,"text":"It shall be unlawful for any recreational vehicle manufacturer, factory branch, distributor, or distributor branch to:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A6","next_prefix":"B1"},"8":{"id":270252,"text":"Fail to perform any of its warranty obligations, including tires, with respect to a recreational vehicle;","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"9":{"id":270253,"text":"Fail to assume all responsibility for any liability resulting from structural or production defects;","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"10":{"id":270254,"text":"Fail to include in written notices of factory recalls to recreational vehicle owners and dealers the expected date by which necessary parts and equipment will be available to dealers for the correction of defects;","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"B4"},"11":{"id":270255,"text":"Fail to compensate any of the recreational vehicle dealers licensed in the Commonwealth for repairs effected by the dealer of merchandise damaged in manufacture or transit to the dealer where the carrier is designated by the manufacturer, factory branch, distributor, or distributor branch;","type":"section","prefixes":["B","4"],"prefix":"4","entire_prefix":"B4","prefix_anchor":"B4","level":2,"prior_prefix":"B3","next_prefix":"B5"},"12":{"id":270256,"text":"Fail to compensate its recreational vehicle dealers licensed in the Commonwealth for warranty parts, work, and service pursuant to subsection A or for legal costs and expenses incurred by such dealers in connection with warranty obligations for which the manufacturer, factory branch, distributor, or distributor branch is legally responsible or that the manufacturer, factory branch, distributor, or distributor branch imposes upon the dealer;","type":"section","prefixes":["B","5"],"prefix":"5","entire_prefix":"B5","prefix_anchor":"B5","level":2,"prior_prefix":"B4","next_prefix":"B6"},"13":{"id":270257,"text":"Misrepresent in any way to purchasers of recreational vehicles that warranties with respect to the manufacture, performance, or design of the recreational vehicle are made by the dealer, either as warrantor or co-warrantor;","type":"section","prefixes":["B","6"],"prefix":"6","entire_prefix":"B6","prefix_anchor":"B6","level":2,"prior_prefix":"B5","next_prefix":"B7"},"14":{"id":270258,"text":"Require the dealer to make warranties to customers in any manner related to the manufacture, performance, or design of the recreational vehicle; or","type":"section","prefixes":["B","7"],"prefix":"7","entire_prefix":"B7","prefix_anchor":"B7","level":2,"prior_prefix":"B6","next_prefix":"B8"},"15":{"id":270259,"text":"Shift or attempt to shift to the recreational vehicle dealer, directly or indirectly, any liabilities of the manufacturer, factory branch, distributor, or distributor branch under the Virginia Motor Vehicle Warranty Enforcement Act (§ 59.1-207.9 et seq.), unless such liability results from the act or omission by the dealer.","type":"section","prefixes":["B","8"],"prefix":"8","entire_prefix":"B8","prefix_anchor":"B8","level":2,"prior_prefix":"B7","next_prefix":"C"},"16":{"id":270260,"text":"Notwithstanding the terms of any franchise, it shall be unlawful for any recreational vehicle manufacturer, factory branch, distributor, or distributor branch to fail to indemnify and hold harmless its recreational vehicle dealers against any losses or damages arising out of complaints, claims, or suits relating to the manufacture, assembly, or design of recreational vehicles, parts, or accessories, or other functions by the manufacturer, factory branch, distributor, or distributor branch beyond the control of the dealer, including, without limitation, the selection by the manufacturer, factory branch, distributor, or distributor branch of parts or components for the recreational vehicle or any damages to merchandise occurring in transit to the dealer where the carrier is designated by the manufacturer, factory branch, distributor, or distributor branch. The dealer shall notify the manufacturer of pending suits in which allegations are made that come within this subsection whenever reasonably practicable to do so. Every recreational vehicle dealer franchise issued to, amended, or renewed for recreational vehicle dealers in the Commonwealth shall be construed to incorporate provisions consistent with the requirements of this subsection.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B8","next_prefix":"D"},"17":{"id":270261,"text":"On any new recreational vehicle, any uncorrected damage or any corrected damage exceeding three percent of the manufacturer’s or distributor’s suggested retail price as defined in 15 U.S.C. \u00a7\u00a7 1231-1233, as measured by retail repair costs, must be disclosed to the dealer in writing prior to delivery. Factory mechanical repair and damage to glass, tires, and bumpers are excluded from the three percent rule when properly replaced by identical manufacturer’s or distributor’s original equipment or parts. Whenever a new recreational vehicle is damaged in transit, when the carrier or means of transportation is determined by the manufacturer or distributor, or whenever a recreational vehicle is otherwise damaged prior to delivery to the new recreational vehicle dealer, the new recreational vehicle dealer shall:","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"D1"},"18":{"id":270262,"text":"Notify the manufacturer or distributor of the damage within three business days from the date of delivery of the new recreational vehicle to the new recreational vehicle dealership or within the additional time specified in the franchise; and","type":"section","prefixes":["D","1"],"prefix":"1","entire_prefix":"D1","prefix_anchor":"D1","level":2,"prior_prefix":"D","next_prefix":"D2"},"19":{"id":270263,"text":"Request from the manufacturer or distributor authorization to replace the components, parts, and accessories damaged or otherwise correct the damage, unless the damage to the recreational vehicle exceeds the three percent rule, in which case the dealer may reject the vehicle within three business days.","type":"section","prefixes":["D","2"],"prefix":"2","entire_prefix":"D2","prefix_anchor":"D2","level":2,"prior_prefix":"D1","next_prefix":"E"},"20":{"id":270264,"text":"If the manufacturer or distributor refuses or fails to authorize correction of such damage within 10 days after receipt of notification, or if the dealer rejects the recreational vehicle because damage exceeds the three percent rule, ownership of the new recreational vehicle shall revert to the manufacturer or distributor, and the new recreational vehicle dealer shall have no obligation, financial or otherwise, with respect to such recreational vehicle. Should either the manufacturer, distributor, or the dealer elect to correct the damage or any other damage exceeding the three percent rule, full disclosure shall be made by the dealer in writing to the buyer and an acknowledgment by the buyer is required. If there is less than three percent damage, no disclosure is required, provided that the damage has been corrected. Predelivery mechanical work shall not require a disclosure. Failure to disclose any corrected damage within the knowledge of the selling dealer to a new recreational vehicle in excess of the three percent rule shall constitute grounds for revocation of the buyer order, provided that, within 30 days of purchase, the recreational vehicle is returned to the dealer with an accompanying written notice of the grounds for revocation. In case of revocation pursuant to this section, the dealer shall accept the recreational vehicle and refund any payments made to the dealer in connection with the transaction, less a reasonable allowance for the consumer’s use of the vehicle as defined in § 59.1-207.11.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D2","next_prefix":"F"},"21":{"id":270265,"text":"If there is a dispute between the manufacturer, factory branch, distributor, or distributor branch and the dealer with respect to any matter referred to in subsection A, B, or C, either party may petition the Commissioner in writing, within 30 days after either party has given written notice of the dispute to the other, for a hearing. The decision of the Commissioner shall be binding on the parties, subject to rights of judicial review and appeal as provided in the Administrative Process Act (§ 2.2-4000 et seq.). However, nothing contained in this section shall give the Commissioner any authority as to the content or interpretation of any manufacturer’s or distributor’s warranty.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E"}},"ancestry":[{"id":14812,"edition_id":1,"name":"Recreational Vehicle Franchises","identifier":"7.2","label":"article","depth":4,"order_by":1,"parent_id":13356,"metadata":{},"date_created":"2026-06-26 03:50:06","date_modified":"2026-06-26 03:50:06","permalink":{"id":231591,"object_type":"structure","relational_id":14812,"identifier":"7.2","token":"46.2\/IV\/15\/7.2","url":"\/46.2\/IV\/15\/7.2\/","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":56650,"structure_id":14812,"section_number":"46.2-1573.10","catch_line":"Ownership of service facilities","url":"\/46.2-1573.10\/","token":"46.2\/IV\/15\/7.2\/46.2-1573.10","metadata":false},{"id":75844,"structure_id":14812,"section_number":"46.2-1573.11","catch_line":"Hearings and other remedies; civil penalties","url":"\/46.2-1573.11\/","token":"46.2\/IV\/15\/7.2\/46.2-1573.11","metadata":false},{"id":69977,"structure_id":14812,"section_number":"46.2-1573.12","catch_line":"Late model and factory repurchase franchises","url":"\/46.2-1573.12\/","token":"46.2\/IV\/15\/7.2\/46.2-1573.12","metadata":false},{"id":86707,"structure_id":14812,"section_number":"46.2-1573.2","catch_line":"Filing of franchises","url":"\/46.2-1573.2\/","token":"46.2\/IV\/15\/7.2\/46.2-1573.2","metadata":false},{"id":87096,"structure_id":14812,"section_number":"46.2-1573.3","catch_line":"Exemption of franchises from Retail Franchising Act","url":"\/46.2-1573.3\/","token":"46.2\/IV\/15\/7.2\/46.2-1573.3","metadata":false},{"id":73238,"structure_id":14812,"section_number":"46.2-1573.4","catch_line":"Coercion of retail dealer by manufacturer or distributor with respect to retail installment sales contracts prohibited; penalty","url":"\/46.2-1573.4\/","token":"46.2\/IV\/15\/7.2\/46.2-1573.4","metadata":false},{"id":87095,"structure_id":14812,"section_number":"46.2-1573.5","catch_line":"Other coercion of dealers; transfer, grant, succession to and cancellation of dealer franchises; delivery of recreational vehicles, parts, and accessories","url":"\/46.2-1573.5\/","token":"46.2\/IV\/15\/7.2\/46.2-1573.5","metadata":false},{"id":72172,"structure_id":14812,"section_number":"46.2-1573.6","catch_line":"Manufacturer or distributor right of first refusal","url":"\/46.2-1573.6\/","token":"46.2\/IV\/15\/7.2\/46.2-1573.6","metadata":false},{"id":62331,"structure_id":14812,"section_number":"46.2-1573.7","catch_line":"Discontinuation of distributors","url":"\/46.2-1573.7\/","token":"46.2\/IV\/15\/7.2\/46.2-1573.7","metadata":false},{"id":75261,"structure_id":14812,"section_number":"46.2-1573.8","catch_line":"Warranty obligations","url":"\/46.2-1573.8\/","token":"46.2\/IV\/15\/7.2\/46.2-1573.8","metadata":false},{"id":57972,"structure_id":14812,"section_number":"46.2-1573.9","catch_line":"Operation of dealership by manufacturer","url":"\/46.2-1573.9\/","token":"46.2\/IV\/15\/7.2\/46.2-1573.9","metadata":false}],"previous_section":{"id":62331,"structure_id":14812,"section_number":"46.2-1573.7","catch_line":"Discontinuation of distributors","url":"\/46.2-1573.7\/","token":"46.2\/IV\/15\/7.2\/46.2-1573.7","metadata":false},"next_section":{"id":57972,"structure_id":14812,"section_number":"46.2-1573.9","catch_line":"Operation of dealership by manufacturer","url":"\/46.2-1573.9\/","token":"46.2\/IV\/15\/7.2\/46.2-1573.9","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/46.2-1573.8\/","history_text":"

This law was first created in 1995. The record of its establishment is cataloged in chapters 767<\/a> and 816<\/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 2 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1996, chapters 453<\/a>, 1043<\/a>, and 1052<\/a>; in 2015, chapter 615<\/a>.<\/p>","references":false,"refers_to":[{"id":86911,"section_number":"2.2-4000","catch_line":"Short title; purpose","order_by":null,"url":"\/2.2-4000\/"},{"id":63318,"section_number":"59.1-207.34","catch_line":"Definitions","order_by":null,"url":"\/59.1-207.34\/"},{"id":83922,"section_number":"59.1-207.9","catch_line":"Short title","order_by":null,"url":"\/59.1-207.9\/"}],"permalink":{"id":231629,"object_type":"law","relational_id":75261,"identifier":"46.2-1573.8","token":"46.2\/IV\/15\/7.2\/46.2-1573.8","url":"\/46.2-1573.8\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/46.2-1573.8\/","token":"46.2\/IV\/15\/7.2\/46.2-1573.8","dublin_core":{"Title":"Warranty obligations","Type":"Text","Format":"text\/html","Identifier":"\u00a7 46.2-1573.8","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Each recreational vehicle<\/span> manufacturer<\/span>, factory branch<\/span>, distributor, or distributor branch<\/span> shall (i) specify in writing to each of its recreational vehicle<\/span> dealers<\/span> licensed in the Commonwealth the dealer<\/span>’s obligations for preparation, delivery, and warranty service on its products and (ii) compensate the dealer<\/span> for warranty parts, service, and diagnostic work required of the dealer<\/span> by the manufacturer<\/span> or distributor as follows: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Compensation of a dealer<\/span> for warranty parts, service, and diagnostic work shall not be less than the amounts charged by the dealer<\/span> for the manufacturer<\/span>’s or distributor’s original parts, service, and diagnostic work to retail customers for nonwarranty service, parts, and diagnostic work installed or performed in the dealer<\/span>’s service department<\/span> unless the amounts are not reasonable; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> For purposes of determining warranty parts and service compensation, menu-priced parts or services, group discounts, special event discounts, and special event promotions shall not be considered in determining amounts charged by the dealer<\/span> to retail customers; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Increases in dealer<\/span> warranty parts and service compensation and diagnostic work compensation, pursuant to this section, shall be requested by the dealer<\/span> in writing, shall be based on 100 consecutive repair orders<\/span> or all repair orders<\/span> over a 90-day period, whichever occurs first, and, in the case of parts, shall be stated as a percentage of markup that shall be uniformly applied to all the manufacturer<\/span>’s or distributor’s parts; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> In the case of warranty parts compensation, the provisions of this subsection shall be effective only for model year 1992 and succeeding model years; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> If a manufacturer<\/span> or distributor furnishes a part to a dealer<\/span> at no cost for use by the dealer<\/span> in performing work for which the manufacturer<\/span> or distributor is required to compensate the dealer<\/span> under this section, the manufacturer<\/span> or distributor shall compensate the dealer<\/span> for the part in the same manner as warranty parts compensation, less the wholesale<\/span> costs, for such part as listed in the manufacturer<\/span>’s current price schedules<\/span>. A manufacturer<\/span> or distributor may pay the dealer<\/span> a reasonable handling fee instead of the compensation otherwise required by this subsection for special high-performance complete engine assemblies in limited production recreational vehicles<\/span> that constitute less than five percent of model production furnished to the dealer<\/span> at no cost, if the manufacturer<\/span> or distributor excludes such special high-performance complete engine assemblies in determining whether the amounts requested by the dealer<\/span> for warranty compensation are consistent with the amounts that the dealer<\/span> charges its other retail service customers for parts used<\/span> by the dealer<\/span> to perform similar work; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> In the case of service work, manufacturer<\/span> original parts or parts otherwise specified by the manufacturer<\/span> or distributor, and parts provided by a dealer<\/span> either pursuant to an adjustment program as defined in § 59.1-207.34<\/a> or as otherwise requested by the manufacturer<\/span> or distributor, the dealer<\/span> shall be compensated in the same manner as for warranty service or parts.\n\t\t\t\tThis section does not apply to compensation for parts such as components, systems, fixtures, appliances, furnishings, accessories, and features that are designed, used<\/span>, and maintained primarily for nonvehicular, residential purposes. Warranty audits of dealer<\/span> records may be conducted by the manufacturer<\/span>, factory branch<\/span>, distributor, or distributor branch<\/span> on a reasonable basis, and dealer<\/span> claims for warranty compensation shall not be denied except for good cause, such as performance of nonwarranty repairs, lack of material<\/span> documentation, fraud<\/span>, or misrepresentation. Claims for dealer<\/span> compensation shall be paid within 30 days of dealer<\/span> submission or within 30 days of the end of an incentive program or rejected in writing for stated reasons. The manufacturer<\/span>, factory branch<\/span>, distributor, or distributor branch<\/span> shall reserve the right to reasonable periodic audits to determine the validity of all such paid claims for dealer<\/span> compensation. Any chargebacks for warranty parts or service compensation and service incentives shall only be for the 12-month period immediately following the date of the claim and, in the case of chargebacks for sales compensation only, for the 18-month period immediately following the date of claim. However, such limitations shall not be effective in the case of intentionally false or fraudulent claims. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> It shall be unlawful for any recreational vehicle<\/span> manufacturer<\/span>, factory branch<\/span>, distributor, or distributor branch<\/span> to: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Fail to perform any of its warranty obligations, including tires, with respect to a recreational vehicle<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Fail to assume all responsibility for any liability resulting from structural or production defects; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Fail to include in written notices of factory recalls to recreational vehicle<\/span> owners<\/span> and dealers<\/span> the expected date by which necessary parts and equipment will be available to dealers<\/span> for the correction of defects; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Fail to compensate any of the recreational vehicle<\/span> dealers<\/span> licensed in the Commonwealth for repairs effected by the dealer<\/span> of merchandise damaged in manufacture or transit to the dealer<\/span> where the carrier is designated by the manufacturer<\/span>, factory branch<\/span>, distributor, or distributor branch<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Fail to compensate its recreational vehicle<\/span> dealers<\/span> licensed in the Commonwealth for warranty parts, work, and service pursuant to subsection A or for legal costs and expenses incurred by such dealers<\/span> in connection with warranty obligations for which the manufacturer<\/span>, factory branch<\/span>, distributor, or distributor branch<\/span> is legally responsible or that the manufacturer<\/span>, factory branch<\/span>, distributor, or distributor branch<\/span> imposes upon the dealer<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Misrepresent in any way to purchasers of recreational vehicles<\/span> that warranties with respect to the manufacture, performance, or design of the recreational vehicle<\/span> are made by the dealer<\/span>, either as warrantor or co-warrantor; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> Require the dealer<\/span> to make warranties to customers in any manner related to the manufacture, performance, or design of the recreational vehicle<\/span>; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> Shift or attempt to shift to the recreational vehicle<\/span> dealer<\/span>, directly or indirectly, any liabilities of the manufacturer<\/span>, factory branch<\/span>, distributor, or distributor branch<\/span> under the Virginia Motor Vehicle<\/span> Warranty Enforcement Act (§ 59.1-207.9<\/a> et seq.), unless such liability results from the act or omission by the dealer<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Notwithstanding the terms of any franchise<\/span>, it shall be unlawful for any recreational vehicle<\/span> manufacturer<\/span>, factory branch<\/span>, distributor, or distributor branch<\/span> to fail to indemnify and hold harmless its recreational vehicle<\/span> dealers<\/span> against any losses or damages<\/span> arising out of complaints, claims, or suits relating to the manufacture, assembly, or design of recreational vehicles<\/span>, parts, or accessories, or other functions by the manufacturer<\/span>, factory branch<\/span>, distributor, or distributor branch<\/span> beyond the control of the dealer<\/span>, including, without limitation, the selection by the manufacturer<\/span>, factory branch<\/span>, distributor, or distributor branch<\/span> of parts or components for the recreational vehicle<\/span> or any damages<\/span> to merchandise occurring in transit to the dealer<\/span> where the carrier is designated by the manufacturer<\/span>, factory branch<\/span>, distributor, or distributor branch<\/span>. The dealer<\/span> shall notify the manufacturer<\/span> of pending suits in which allegations<\/span> are made that come within this subsection whenever reasonably practicable to do so. Every recreational vehicle<\/span> dealer<\/span> franchise<\/span> issued to, amended, or renewed for recreational vehicle<\/span> dealers<\/span> in the Commonwealth shall be construed to incorporate provisions consistent with the requirements of this subsection. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> On any new<\/span> recreational vehicle<\/span>, any uncorrected damage or any corrected damage exceeding three percent of the manufacturer<\/span>’s or distributor’s suggested retail price as defined in 15 U.S.C. \u00a7\u00a7 1231-1233, as measured by retail repair costs, must be disclosed to the dealer<\/span> in writing prior to delivery. Factory mechanical repair and damage to glass, tires, and bumpers are excluded from the three percent rule when properly replaced by identical manufacturer<\/span>’s or distributor’s original equipment or parts. Whenever a new<\/span> recreational vehicle<\/span> is damaged in transit, when the carrier or means of transportation is determined by the manufacturer<\/span> or distributor, or whenever a recreational vehicle<\/span> is otherwise damaged prior to delivery to the new<\/span> recreational vehicle<\/span> dealer<\/span>, the new<\/span> recreational vehicle<\/span> dealer<\/span> shall: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Notify the manufacturer<\/span> or distributor of the damage within three business days from the date of delivery of the new<\/span> recreational vehicle<\/span> to the new<\/span> recreational vehicle<\/span> dealership or within the additional time specified in the franchise<\/span>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Request from the manufacturer<\/span> or distributor authorization to replace the components, parts, and accessories damaged or otherwise correct the damage, unless the damage to the recreational vehicle<\/span> exceeds the three percent rule, in which case the dealer<\/span> may reject the vehicle within three business days. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> If the manufacturer<\/span> or distributor refuses or fails to authorize correction of such damage within 10 days after receipt of notification, or if the dealer<\/span> rejects the recreational vehicle<\/span> because damage exceeds the three percent rule, ownership of the new<\/span> recreational vehicle<\/span> shall revert to the manufacturer<\/span> or distributor, and the new<\/span> recreational vehicle<\/span> dealer<\/span> shall have no obligation, financial or otherwise, with respect to such recreational vehicle<\/span>. Should either the manufacturer<\/span>, distributor, or the dealer<\/span> elect to correct the damage or any other damage exceeding the three percent rule, full disclosure shall be made by the dealer<\/span> in writing to the buyer and an acknowledgment by the buyer is required. If there is less than three percent damage, no disclosure is required, provided that the damage has been corrected. Predelivery mechanical work shall not require a disclosure. Failure to disclose any corrected damage within the knowledge of the selling dealer<\/span> to a new<\/span> recreational vehicle<\/span> in excess of the three percent rule shall constitute grounds for revocation<\/span> of the buyer order<\/span>, provided that, within 30 days of purchase, the recreational vehicle<\/span> is returned to the dealer<\/span> with an accompanying written notice of the grounds for revocation<\/span>. In case of revocation<\/span> pursuant to this section, the dealer<\/span> shall accept the recreational vehicle<\/span> and refund any payments made to the dealer<\/span> in connection with the transaction, less a reasonable allowance for the consumer’s use of the vehicle as defined in § 59.1-207.11<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> If there is a dispute between the manufacturer<\/span>, factory branch<\/span>, distributor, or distributor branch<\/span> and the dealer<\/span> with respect to any matter referred to in subsection A, B, or C, either party<\/span> may petition<\/span> the Commissioner<\/span> in writing, within 30 days after either party<\/span> has given written notice of the dispute to the other, for a hearing<\/span>. The decision of the Commissioner<\/span> shall be binding on the parties, subject to rights of judicial review and appeal<\/span> as provided in the Administrative Process Act (§ 2.2-4000<\/a> et seq.). However, nothing contained in this section shall give the Commissioner<\/span> any authority as to the content or interpretation of any manufacturer<\/span>’s or distributor’s warranty. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nWARRANTY OBLIGATIONS (\u00a7 46.2-1573.8)\n\nA. Each recreational vehicle manufacturer, factory branch, distributor, or\ndistributor branch shall (i) specify in writing to each of its recreational\nvehicle dealers licensed in the Commonwealth the dealer’s obligations for\npreparation, delivery, and warranty service on its products and (ii) compensate\nthe dealer for warranty parts, service, and diagnostic work required of the\ndealer by the manufacturer or distributor as follows:\n\n 1. Compensation of a dealer for warranty parts, service, and diagnostic work\n shall not be less than the amounts charged by the dealer for the\n manufacturer’s or distributor’s original parts, service, and\n diagnostic work to retail customers for nonwarranty service, parts, and\n diagnostic work installed or performed in the dealer’s service\n department unless the amounts are not reasonable;\n\n 2. For purposes of determining warranty parts and service compensation,\n menu-priced parts or services, group discounts, special event discounts, and\n special event promotions shall not be considered in determining amounts\n charged by the dealer to retail customers;\n\n 3. Increases in dealer warranty parts and service compensation and diagnostic\n work compensation, pursuant to this section, shall be requested by the dealer\n in writing, shall be based on 100 consecutive repair orders or all repair\n orders over a 90-day period, whichever occurs first, and, in the case of\n parts, shall be stated as a percentage of markup that shall be uniformly\n applied to all the manufacturer’s or distributor’s parts;\n\n 4. In the case of warranty parts compensation, the provisions of this\n subsection shall be effective only for model year 1992 and succeeding model\n years;\n\n 5. If a manufacturer or distributor furnishes a part to a dealer at no cost\n for use by the dealer in performing work for which the manufacturer or\n distributor is required to compensate the dealer under this section, the\n manufacturer or distributor shall compensate the dealer for the part in the\n same manner as warranty parts compensation, less the wholesale costs, for such\n part as listed in the manufacturer’s current price schedules. A\n manufacturer or distributor may pay the dealer a reasonable handling fee\n instead of the compensation otherwise required by this subsection for special\n high-performance complete engine assemblies in limited production recreational\n vehicles that constitute less than five percent of model production furnished\n to the dealer at no cost, if the manufacturer or distributor excludes such\n special high-performance complete engine assemblies in determining whether the\n amounts requested by the dealer for warranty compensation are consistent with\n the amounts that the dealer charges its other retail service customers for\n parts used by the dealer to perform similar work; or\n\n 6. In the case of service work, manufacturer original parts or parts otherwise\n specified by the manufacturer or distributor, and parts provided by a dealer\n either pursuant to an adjustment program as defined in § 59.1-207.34 or\n as otherwise requested by the manufacturer or distributor, the dealer shall be\n compensated in the same manner as for warranty service or parts.\n \t\t\t\tThis section does not apply to compensation for parts such as components,\n systems, fixtures, appliances, furnishings, accessories, and features that are\n designed, used, and maintained primarily for nonvehicular, residential\n purposes. Warranty audits of dealer records may be conducted by the\n manufacturer, factory branch, distributor, or distributor branch on a\n reasonable basis, and dealer claims for warranty compensation shall not be\n denied except for good cause, such as performance of nonwarranty repairs, lack\n of material documentation, fraud, or misrepresentation. Claims for dealer\n compensation shall be paid within 30 days of dealer submission or within 30\n days of the end of an incentive program or rejected in writing for stated\n reasons. The manufacturer, factory branch, distributor, or distributor branch\n shall reserve the right to reasonable periodic audits to determine the\n validity of all such paid claims for dealer compensation. Any chargebacks for\n warranty parts or service compensation and service incentives shall only be\n for the 12-month period immediately following the date of the claim and, in\n the case of chargebacks for sales compensation only, for the 18-month period\n immediately following the date of claim. However, such limitations shall not\n be effective in the case of intentionally false or fraudulent claims.\n\nB. It shall be unlawful for any recreational vehicle manufacturer, factory\nbranch, distributor, or distributor branch to:\n\n 1. Fail to perform any of its warranty obligations, including tires, with\n respect to a recreational vehicle;\n\n 2. Fail to assume all responsibility for any liability resulting from\n structural or production defects;\n\n 3. Fail to include in written notices of factory recalls to recreational\n vehicle owners and dealers the expected date by which necessary parts and\n equipment will be available to dealers for the correction of defects;\n\n 4. Fail to compensate any of the recreational vehicle dealers licensed in the\n Commonwealth for repairs effected by the dealer of merchandise damaged in\n manufacture or transit to the dealer where the carrier is designated by the\n manufacturer, factory branch, distributor, or distributor branch;\n\n 5. Fail to compensate its recreational vehicle dealers licensed in the\n Commonwealth for warranty parts, work, and service pursuant to subsection A or\n for legal costs and expenses incurred by such dealers in connection with\n warranty obligations for which the manufacturer, factory branch, distributor,\n or distributor branch is legally responsible or that the manufacturer, factory\n branch, distributor, or distributor branch imposes upon the dealer;\n\n 6. Misrepresent in any way to purchasers of recreational vehicles that\n warranties with respect to the manufacture, performance, or design of the\n recreational vehicle are made by the dealer, either as warrantor or\n co-warrantor;\n\n 7. Require the dealer to make warranties to customers in any manner related to\n the manufacture, performance, or design of the recreational vehicle; or\n\n 8. Shift or attempt to shift to the recreational vehicle dealer, directly or\n indirectly, any liabilities of the manufacturer, factory branch, distributor,\n or distributor branch under the Virginia Motor Vehicle Warranty Enforcement\n Act (§ 59.1-207.9 et seq.), unless such liability results from the act or\n omission by the dealer.\n\nC. Notwithstanding the terms of any franchise, it shall be unlawful for any\nrecreational vehicle manufacturer, factory branch, distributor, or distributor\nbranch to fail to indemnify and hold harmless its recreational vehicle dealers\nagainst any losses or damages arising out of complaints, claims, or suits\nrelating to the manufacture, assembly, or design of recreational vehicles,\nparts, or accessories, or other functions by the manufacturer, factory branch,\ndistributor, or distributor branch beyond the control of the dealer, including,\nwithout limitation, the selection by the manufacturer, factory branch,\ndistributor, or distributor branch of parts or components for the recreational\nvehicle or any damages to merchandise occurring in transit to the dealer where\nthe carrier is designated by the manufacturer, factory branch, distributor, or\ndistributor branch. The dealer shall notify the manufacturer of pending suits in\nwhich allegations are made that come within this subsection whenever reasonably\npracticable to do so. Every recreational vehicle dealer franchise issued to,\namended, or renewed for recreational vehicle dealers in the Commonwealth shall\nbe construed to incorporate provisions consistent with the requirements of this\nsubsection.\n\nD. On any new recreational vehicle, any uncorrected damage or any corrected\ndamage exceeding three percent of the manufacturer’s or\ndistributor’s suggested retail price as defined in 15 U.S.C. \u00a7\u00a7\n1231-1233, as measured by retail repair costs, must be disclosed to the dealer\nin writing prior to delivery. Factory mechanical repair and damage to glass,\ntires, and bumpers are excluded from the three percent rule when properly\nreplaced by identical manufacturer’s or distributor’s original\nequipment or parts. Whenever a new recreational vehicle is damaged in transit,\nwhen the carrier or means of transportation is determined by the manufacturer or\ndistributor, or whenever a recreational vehicle is otherwise damaged prior to\ndelivery to the new recreational vehicle dealer, the new recreational vehicle\ndealer shall:\n\n 1. Notify the manufacturer or distributor of the damage within three business\n days from the date of delivery of the new recreational vehicle to the new\n recreational vehicle dealership or within the additional time specified in the\n franchise; and\n\n 2. Request from the manufacturer or distributor authorization to replace the\n components, parts, and accessories damaged or otherwise correct the damage,\n unless the damage to the recreational vehicle exceeds the three percent rule,\n in which case the dealer may reject the vehicle within three business days.\n\nE. If the manufacturer or distributor refuses or fails to authorize correction\nof such damage within 10 days after receipt of notification, or if the dealer\nrejects the recreational vehicle because damage exceeds the three percent rule,\nownership of the new recreational vehicle shall revert to the manufacturer or\ndistributor, and the new recreational vehicle dealer shall have no obligation,\nfinancial or otherwise, with respect to such recreational vehicle. Should either\nthe manufacturer, distributor, or the dealer elect to correct the damage or any\nother damage exceeding the three percent rule, full disclosure shall be made by\nthe dealer in writing to the buyer and an acknowledgment by the buyer is\nrequired. If there is less than three percent damage, no disclosure is required,\nprovided that the damage has been corrected. Predelivery mechanical work shall\nnot require a disclosure. Failure to disclose any corrected damage within the\nknowledge of the selling dealer to a new recreational vehicle in excess of the\nthree percent rule shall constitute grounds for revocation of the buyer order,\nprovided that, within 30 days of purchase, the recreational vehicle is returned\nto the dealer with an accompanying written notice of the grounds for revocation.\nIn case of revocation pursuant to this section, the dealer shall accept the\nrecreational vehicle and refund any payments made to the dealer in connection\nwith the transaction, less a reasonable allowance for the consumer’s use\nof the vehicle as defined in § 59.1-207.11.\n\nF. If there is a dispute between the manufacturer, factory branch, distributor,\nor distributor branch and the dealer with respect to any matter referred to in\nsubsection A, B, or C, either party may petition the Commissioner in writing,\nwithin 30 days after either party has given written notice of the dispute to the\nother, for a hearing. The decision of the Commissioner shall be binding on the\nparties, subject to rights of judicial review and appeal as provided in the\nAdministrative Process Act (§ 2.2-4000 et seq.). However, nothing contained\nin this section shall give the Commissioner any authority as to the content or\ninterpretation of any manufacturer’s or distributor’s warranty.\n\nHISTORY: 1995, cc. 767, 816, \u00a7 46.2-1979; 1996, cc. 453, 1043, 1052; 2015, c.\n615.","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}}