{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/46.2-1573.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/46.2-1573.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/46.2-1573.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/46.2-1573.html"}],"law_id":69981,"edition_id":1,"section_id":69981,"structure_id":15134,"section_number":"46.2-1573","catch_line":"Hearings and other remedies; civil penalties","history":"1988, c. 865, \u00a7 46.1-550.5:32; 1989, c. 727; 1992, c. 115; 1994, c. 702; 1995, cc. 767, 816; 2000, c. 106; 2001, cc. 165, 173; 2009, cc. 173, 176; 2010, cc. 284, 318; 2011, c. 650; 2015, c. 557; 2019, c. 751; 2020, cc. 1230, 1275.","full_text":"A\n\nIn every case of a hearing before the Commissioner authorized under this article, the Commissioner shall give reasonable notice of each hearing to all interested parties, and the Commissioner’s decision shall be binding on the parties, subject to the rights of judicial review and appeal as provided in Chapter 40 (§ 2.2-4000 et seq.) of Title 2.2. In every case of a hearing before the Commissioner authorized under this article based on a request or petition of a motor vehicle dealer, the manufacturer, factory branch, distributor, or distributor branch shall have the burden of proving by a preponderance of the evidence that the manufacturer, factory branch, distributor, or distributor branch has good cause to take the action or actions for which the dealer has filed the petition for a hearing or that such actions are reasonable if required under the relevant provision.B\n\nThe hearing process before the Commissioner under this article shall commence within 90 days of the request for a hearing by prehearing conference between the hearing officer and the parties in person, by telephone, or by other electronic means designated by the Commissioner. The hearing officer will set the hearing on a date or dates consistent with the rights of due process of the parties. The Commissioner’s decision shall be rendered within 60 days from the receipt of the hearing officer’s recommendation. Hearings authorized under this article shall be presided over by a hearing officer selected from a list prepared by the Executive Secretary of the Supreme Court of Virginia within 60 days following the request for a hearing. Reasonable efforts shall be made to ensure that a hearing officer shall have at least five years of experience as a hearing officer in administrative hearings in the Commonwealth, shall have telephone and email capability, and shall be an active member of the Virginia State Bar. On request of the Commissioner, the Executive Secretary will name a hearing officer from the list, selected on a rotation system administered by the Executive Secretary. The hearing officer shall provide recommendations to the Commissioner within 90 days of the conclusion of the hearing.C\n\nNotwithstanding any contrary provision of this article, the Commissioner shall initiate investigations, conduct hearings, and determine the rights of parties under this article whenever he is provided information by the Motor Vehicle Dealer Board or any other person indicating a possible violation of any provision of this article. The Commissioner shall issue a response to the Motor Vehicle Dealer Board or person reporting the alleged violation and any other party to the investigation providing an explanation of action taken under this section and the reason for such action.D\n\nFor purposes of any matter brought to the Commissioner under subdivisions 3, 4, 5, 6 and 7b of \u00a7 46.2-1569 with respect to which the Commissioner is to determine whether there is good cause for a proposed action or whether it would be unreasonable under the circumstances, the Commissioner shall consider:1\n\nThe volume of the affected dealer’s business in the relevant market area;2\n\nThe nature and extent of the dealer’s investment in its business;3\n\nThe adequacy of the dealer’s capitalization to the franchisor’s standards and the adequacy of the dealer’s facilities, equipment, parts, supplies, and personnel;4\n\nThe effect of the proposed action on the community;5\n\nThe extent and quality of the dealer’s service under motor vehicle warranties;6\n\nThe dealer’s performance under the terms of its franchise;7\n\nOther economic and geographical factors reasonably associated with the proposed action; and8\n\nThe recommendations, if any, from a three-member panel composed of members of the Board who are franchised dealers not of the same line-make involved in the hearing and who are appointed to the panel by the Commissioner.E\n\nAn interested party in a hearing held pursuant to subsection A shall comply with the effective date of compliance established by the Commissioner in his decision in such hearing, unless a stay or extension of such date is granted by the Commissioner or the Commissioner’s decision is under judicial review and appeal as provided in subsection A. If, after notice to such interested party and an opportunity to comment, the Commissioner finds an interested party has not complied with his decision by the designated date of compliance, unless a stay or extension of such date has been granted by the Commissioner or the Commissioner’s decision is under judicial review and appeal, the Commissioner may assess such interested party a civil penalty not to exceed $1,000 per day of noncompliance. Civil penalties collected under this subsection shall be deposited into the Commonwealth Transportation Fund established pursuant to § 33.2-1524.F\n\nDuring the hearing process, parties may obtain documents and materials by discovery pursuant to Rules 4:9 and 4:9A of the Supreme Court of Virginia. The parties shall exchange reports of experts, which shall meet the standard of Rule 4:1 of the Supreme Court of Virginia, at times to be established by the hearing officer. The parties may utilize any other form of discovery provided under the Rules of Supreme Court of Virginia if allowed by the hearing officer based on good cause shown. For discovery permitted under the Rules of Supreme Court of Virginia, a party may object to the discovery sought or seek to limit the discovery sought on any grounds permitted by the Rules or applicable law.","order_by":null,"text":{"0":{"id":252835,"text":"In every case of a hearing before the Commissioner authorized under this article, the Commissioner shall give reasonable notice of each hearing to all interested parties, and the Commissioner’s decision shall be binding on the parties, subject to the rights of judicial review and appeal as provided in Chapter 40 (§ 2.2-4000 et seq.) of Title 2.2. In every case of a hearing before the Commissioner authorized under this article based on a request or petition of a motor vehicle dealer, the manufacturer, factory branch, distributor, or distributor branch shall have the burden of proving by a preponderance of the evidence that the manufacturer, factory branch, distributor, or distributor branch has good cause to take the action or actions for which the dealer has filed the petition for a hearing or that such actions are reasonable if required under the relevant provision.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":252836,"text":"The hearing process before the Commissioner under this article shall commence within 90 days of the request for a hearing by prehearing conference between the hearing officer and the parties in person, by telephone, or by other electronic means designated by the Commissioner. The hearing officer will set the hearing on a date or dates consistent with the rights of due process of the parties. The Commissioner’s decision shall be rendered within 60 days from the receipt of the hearing officer’s recommendation. Hearings authorized under this article shall be presided over by a hearing officer selected from a list prepared by the Executive Secretary of the Supreme Court of Virginia within 60 days following the request for a hearing. Reasonable efforts shall be made to ensure that a hearing officer shall have at least five years of experience as a hearing officer in administrative hearings in the Commonwealth, shall have telephone and email capability, and shall be an active member of the Virginia State Bar. On request of the Commissioner, the Executive Secretary will name a hearing officer from the list, selected on a rotation system administered by the Executive Secretary. The hearing officer shall provide recommendations to the Commissioner within 90 days of the conclusion of the hearing.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":252837,"text":"Notwithstanding any contrary provision of this article, the Commissioner shall initiate investigations, conduct hearings, and determine the rights of parties under this article whenever he is provided information by the Motor Vehicle Dealer Board or any other person indicating a possible violation of any provision of this article. The Commissioner shall issue a response to the Motor Vehicle Dealer Board or person reporting the alleged violation and any other party to the investigation providing an explanation of action taken under this section and the reason for such action.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":252838,"text":"For purposes of any matter brought to the Commissioner under subdivisions 3, 4, 5, 6 and 7b of \u00a7 46.2-1569 with respect to which the Commissioner is to determine whether there is good cause for a proposed action or whether it would be unreasonable under the circumstances, the Commissioner shall consider:","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"D1"},"4":{"id":252839,"text":"The volume of the affected dealer’s business in the relevant market area;","type":"section","prefixes":["D","1"],"prefix":"1","entire_prefix":"D1","prefix_anchor":"D1","level":2,"prior_prefix":"D","next_prefix":"D2"},"5":{"id":252840,"text":"The nature and extent of the dealer’s investment in its business;","type":"section","prefixes":["D","2"],"prefix":"2","entire_prefix":"D2","prefix_anchor":"D2","level":2,"prior_prefix":"D1","next_prefix":"D3"},"6":{"id":252841,"text":"The adequacy of the dealer’s capitalization to the franchisor’s standards and the adequacy of the dealer’s facilities, equipment, parts, supplies, and personnel;","type":"section","prefixes":["D","3"],"prefix":"3","entire_prefix":"D3","prefix_anchor":"D3","level":2,"prior_prefix":"D2","next_prefix":"D4"},"7":{"id":252842,"text":"The effect of the proposed action on the community;","type":"section","prefixes":["D","4"],"prefix":"4","entire_prefix":"D4","prefix_anchor":"D4","level":2,"prior_prefix":"D3","next_prefix":"D5"},"8":{"id":252843,"text":"The extent and quality of the dealer’s service under motor vehicle warranties;","type":"section","prefixes":["D","5"],"prefix":"5","entire_prefix":"D5","prefix_anchor":"D5","level":2,"prior_prefix":"D4","next_prefix":"D6"},"9":{"id":252844,"text":"The dealer’s performance under the terms of its franchise;","type":"section","prefixes":["D","6"],"prefix":"6","entire_prefix":"D6","prefix_anchor":"D6","level":2,"prior_prefix":"D5","next_prefix":"D7"},"10":{"id":252845,"text":"Other economic and geographical factors reasonably associated with the proposed action; and","type":"section","prefixes":["D","7"],"prefix":"7","entire_prefix":"D7","prefix_anchor":"D7","level":2,"prior_prefix":"D6","next_prefix":"D8"},"11":{"id":252846,"text":"The recommendations, if any, from a three-member panel composed of members of the Board who are franchised dealers not of the same line-make involved in the hearing and who are appointed to the panel by the Commissioner.","type":"section","prefixes":["D","8"],"prefix":"8","entire_prefix":"D8","prefix_anchor":"D8","level":2,"prior_prefix":"D7","next_prefix":"E"},"12":{"id":252847,"text":"An interested party in a hearing held pursuant to subsection A shall comply with the effective date of compliance established by the Commissioner in his decision in such hearing, unless a stay or extension of such date is granted by the Commissioner or the Commissioner’s decision is under judicial review and appeal as provided in subsection A. If, after notice to such interested party and an opportunity to comment, the Commissioner finds an interested party has not complied with his decision by the designated date of compliance, unless a stay or extension of such date has been granted by the Commissioner or the Commissioner’s decision is under judicial review and appeal, the Commissioner may assess such interested party a civil penalty not to exceed $1,000 per day of noncompliance. Civil penalties collected under this subsection shall be deposited into the Commonwealth Transportation Fund established pursuant to § 33.2-1524.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D8","next_prefix":"F"},"13":{"id":252848,"text":"During the hearing process, parties may obtain documents and materials by discovery pursuant to Rules 4:9 and 4:9A of the Supreme Court of Virginia. The parties shall exchange reports of experts, which shall meet the standard of Rule 4:1 of the Supreme Court of Virginia, at times to be established by the hearing officer. The parties may utilize any other form of discovery provided under the Rules of Supreme Court of Virginia if allowed by the hearing officer based on good cause shown. For discovery permitted under the Rules of Supreme Court of Virginia, a party may object to the discovery sought or seek to limit the discovery sought on any grounds permitted by the Rules or applicable law.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E"}},"ancestry":[{"id":15134,"edition_id":1,"name":"Franchises","identifier":"7","label":"article","depth":4,"order_by":1,"parent_id":13356,"metadata":{},"date_created":"2026-06-26 03:52:26","date_modified":"2026-06-26 03:52:26","permalink":{"id":231519,"object_type":"structure","relational_id":15134,"identifier":"7","token":"46.2\/IV\/15\/7","url":"\/46.2\/IV\/15\/7\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13356,"edition_id":1,"name":"Motor Vehicle Dealers","identifier":"15","label":"chapter","depth":3,"order_by":1,"parent_id":13355,"metadata":{},"date_created":"2026-06-26 03:44:42","date_modified":"2026-06-26 03:44:42","permalink":{"id":231067,"object_type":"structure","relational_id":13356,"identifier":"15","token":"46.2\/IV\/15","url":"\/46.2\/IV\/15\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13355,"edition_id":1,"name":"Dealers and Driver Training Schools","identifier":"IV","label":"subtitle","depth":2,"order_by":1,"parent_id":12770,"metadata":{},"date_created":"2026-06-26 03:44:42","date_modified":"2026-06-26 03:44:42","permalink":{"id":231065,"object_type":"structure","relational_id":13355,"identifier":"IV","token":"46.2\/IV","url":"\/46.2\/IV\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12770,"edition_id":1,"name":"Motor Vehicles","identifier":"46.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:52","date_modified":"2026-06-26 03:43:52","permalink":{"id":225289,"object_type":"structure","relational_id":12770,"identifier":"46.2","token":"46.2","url":"\/46.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":81977,"structure_id":15134,"section_number":"46.2-1566","catch_line":"Filing of franchises","url":"\/46.2-1566\/","token":"46.2\/IV\/15\/7\/46.2-1566","metadata":false},{"id":75377,"structure_id":15134,"section_number":"46.2-1567","catch_line":"Exemption of franchises from Retail Franchising Act","url":"\/46.2-1567\/","token":"46.2\/IV\/15\/7\/46.2-1567","metadata":false},{"id":85096,"structure_id":15134,"section_number":"46.2-1568","catch_line":"Coercion of retail dealer by manufacturer or distributor with respect to retail installment sales contracts, extended service contracts or extended maintenance plans, financing, or leasing prohibited; penalty","url":"\/46.2-1568\/","token":"46.2\/IV\/15\/7\/46.2-1568","metadata":false},{"id":74199,"structure_id":15134,"section_number":"46.2-1568.1","catch_line":"Discrimination by manufacturers or distributors prohibited","url":"\/46.2-1568.1\/","token":"46.2\/IV\/15\/7\/46.2-1568.1","metadata":false},{"id":60913,"structure_id":15134,"section_number":"46.2-1569","catch_line":"Other coercion of dealers; transfer, grant, succession to and cancellation of dealer franchises; delivery of vehicles, parts, and accessories","url":"\/46.2-1569\/","token":"46.2\/IV\/15\/7\/46.2-1569","metadata":false},{"id":57658,"structure_id":15134,"section_number":"46.2-1569.1","catch_line":"Manufacturer or distributor right of first refusal","url":"\/46.2-1569.1\/","token":"46.2\/IV\/15\/7\/46.2-1569.1","metadata":false},{"id":85388,"structure_id":15134,"section_number":"46.2-1570","catch_line":"Discontinuation of distributors","url":"\/46.2-1570\/","token":"46.2\/IV\/15\/7\/46.2-1570","metadata":false},{"id":60902,"structure_id":15134,"section_number":"46.2-1571","catch_line":"Recall, warranty, maintenance and sales incentive obligations","url":"\/46.2-1571\/","token":"46.2\/IV\/15\/7\/46.2-1571","metadata":false},{"id":67472,"structure_id":15134,"section_number":"46.2-1572","catch_line":"Operation of dealership by manufacturer","url":"\/46.2-1572\/","token":"46.2\/IV\/15\/7\/46.2-1572","metadata":false},{"id":75339,"structure_id":15134,"section_number":"46.2-1572.1","catch_line":"Ownership of service facilities","url":"\/46.2-1572.1\/","token":"46.2\/IV\/15\/7\/46.2-1572.1","metadata":false},{"id":75995,"structure_id":15134,"section_number":"46.2-1572.2","catch_line":"Mediation of disputes","url":"\/46.2-1572.2\/","token":"46.2\/IV\/15\/7\/46.2-1572.2","metadata":false},{"id":65117,"structure_id":15134,"section_number":"46.2-1572.3","catch_line":"Waiver prohibited","url":"\/46.2-1572.3\/","token":"46.2\/IV\/15\/7\/46.2-1572.3","metadata":false},{"id":74526,"structure_id":15134,"section_number":"46.2-1572.4","catch_line":"Manufacturer or distributor use of performance standards","url":"\/46.2-1572.4\/","token":"46.2\/IV\/15\/7\/46.2-1572.4","metadata":false},{"id":69981,"structure_id":15134,"section_number":"46.2-1573","catch_line":"Hearings and other remedies; civil penalties","url":"\/46.2-1573\/","token":"46.2\/IV\/15\/7\/46.2-1573","metadata":false},{"id":84529,"structure_id":15134,"section_number":"46.2-1573.01","catch_line":"Recovery of attorney's fees","url":"\/46.2-1573.01\/","token":"46.2\/IV\/15\/7\/46.2-1573.01","metadata":false},{"id":67893,"structure_id":15134,"section_number":"46.2-1573.02","catch_line":"Limited right of dealers to sell new motor vehicles following termination of franchise","url":"\/46.2-1573.02\/","token":"46.2\/IV\/15\/7\/46.2-1573.02","metadata":false}],"previous_section":{"id":74526,"structure_id":15134,"section_number":"46.2-1572.4","catch_line":"Manufacturer or distributor use of performance standards","url":"\/46.2-1572.4\/","token":"46.2\/IV\/15\/7\/46.2-1572.4","metadata":false},"next_section":{"id":84529,"structure_id":15134,"section_number":"46.2-1573.01","catch_line":"Recovery of attorney's fees","url":"\/46.2-1573.01\/","token":"46.2\/IV\/15\/7\/46.2-1573.01","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/46.2-1573\/","history_text":"

This law was first created in 1988. The record of its establishment is cataloged in chapter 865 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1988 \u201cActs\u201d aren\u2019t available online. It has been modified 12 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1989, chapter 727; in 1992, chapter 115; in 1994, chapter 702<\/a>; in 1995, chapters 767<\/a> and 816<\/a>; in 2000, chapter 106<\/a>; in 2001, chapters 165<\/a> and 173<\/a>; in 2009, chapters 173<\/a> and 176<\/a>; in 2010, chapters 284<\/a> and 318<\/a>; in 2011, chapter 650<\/a>; in 2015, chapter 557<\/a>; in 2019, chapter 751<\/a>; in 2020, chapters 1230<\/a> and 1275<\/a>.<\/p>","references":[{"id":67094,"section_number":"33.2-1530","catch_line":"Highway Maintenance and Operating Fund","order_by":null,"url":"\/33.2-1530\/"},{"id":85096,"section_number":"46.2-1568","catch_line":"Coercion of retail dealer by manufacturer or distributor with respect to retail installment sales contracts, extended service contracts or extended maintenance plans, financing, or leasing prohibited; penalty","order_by":null,"url":"\/46.2-1568\/"},{"id":60913,"section_number":"46.2-1569","catch_line":"Other coercion of dealers; transfer, grant, succession to and cancellation of dealer franchises; delivery of vehicles, parts, and accessories","order_by":null,"url":"\/46.2-1569\/"},{"id":84529,"section_number":"46.2-1573.01","catch_line":"Recovery of attorney's fees","order_by":null,"url":"\/46.2-1573.01\/"}],"refers_to":[{"id":86911,"section_number":"2.2-4000","catch_line":"Short title; purpose","order_by":null,"url":"\/2.2-4000\/"},{"id":60913,"section_number":"46.2-1569","catch_line":"Other coercion of dealers; transfer, grant, succession to and cancellation of dealer franchises; delivery of vehicles, parts, and accessories","order_by":null,"url":"\/46.2-1569\/"}],"permalink":{"id":231573,"object_type":"law","relational_id":69981,"identifier":"46.2-1573","token":"46.2\/IV\/15\/7\/46.2-1573","url":"\/46.2-1573\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/46.2-1573\/","token":"46.2\/IV\/15\/7\/46.2-1573","dublin_core":{"Title":"Hearings and other remedies; civil penalties","Type":"Text","Format":"text\/html","Identifier":"\u00a7 46.2-1573","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> In every case of a hearing<\/span> before the Commissioner<\/span> authorized under this article, the Commissioner<\/span> shall give reasonable notice of each hearing<\/span> to all interested parties, and the Commissioner<\/span>’s decision shall be binding on the parties, subject to the rights of judicial review and appeal<\/span> as provided in Chapter 40 (§ 2.2-4000<\/a> et seq.) of Title 2.2. In every case of a hearing<\/span> before the Commissioner<\/span> authorized under this article based on a request or petition<\/span> of a motor vehicle dealer<\/span>, the manufacturer<\/span>, factory branch<\/span>, distributor, or distributor branch<\/span> shall have the burden of proving by a preponderance of the evidence<\/span> that the manufacturer<\/span>, factory branch<\/span>, distributor, or distributor branch<\/span> has good cause to take the action or actions for which the dealer has filed the petition<\/span> for a hearing<\/span> or that such actions are reasonable if required under the relevant provision. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The hearing<\/span> process before the Commissioner<\/span> under this article shall commence within 90 days of the request for a hearing<\/span> by prehearing conference between the hearing<\/span> officer and the parties in person, by telephone, or by other electronic means designated by the Commissioner<\/span>. The hearing<\/span> officer will set the hearing<\/span> on a date or dates consistent with the rights of due process<\/span> of the parties. The Commissioner<\/span>’s decision shall be rendered within 60 days from the receipt of the hearing<\/span> officer’s recommendation. Hearings<\/span> authorized under this article shall be presided over by a hearing<\/span> officer selected from a list prepared by the Executive Secretary of the Supreme Court<\/span> of Virginia within 60 days following the request for a hearing<\/span>. Reasonable efforts shall be made to ensure that a hearing<\/span> officer shall have at least five years of experience as a hearing<\/span> officer in administrative hearings<\/span> in the Commonwealth, shall have telephone and email capability, and shall be an active member of the Virginia State Bar. On request of the Commissioner<\/span>, the Executive Secretary will name a hearing<\/span> officer from the list, selected on a rotation system administered by the Executive Secretary. The hearing<\/span> officer shall provide recommendations to the Commissioner<\/span> within 90 days of the conclusion of the hearing<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Notwithstanding any contrary provision of this article, the Commissioner<\/span> shall initiate investigations, conduct hearings<\/span>, and determine the rights of parties under this article whenever he is provided information by the Motor Vehicle Dealer<\/span> Board<\/span> or any other person indicating a possible violation of any provision of this article. The Commissioner<\/span> shall issue<\/span> a response to the Motor Vehicle Dealer<\/span> Board<\/span> or person reporting the alleged violation and any other party<\/span> to the investigation providing an explanation of action taken under this section and the reason for such action. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> For purposes of any matter brought to the Commissioner<\/span> under subdivisions 3, 4, 5, 6 and 7b of \u00a7 46.2-1569<\/a> with respect to which the Commissioner<\/span> is to determine whether there is good cause for a proposed action or whether it would be unreasonable under the circumstances, the Commissioner<\/span> shall consider: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The volume of the affected dealer’s business in the relevant market area<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The nature and extent of the dealer’s investment in its business; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The adequacy of the dealer’s capitalization to the franchisor’s standards and the adequacy of the dealer’s facilities, equipment, parts, supplies, and personnel; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> The effect of the proposed action on the community; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> The extent and quality of the dealer’s service under motor vehicle warranties; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> The dealer’s performance under the terms of its franchise<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> Other economic and geographical factors reasonably associated with the proposed action; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> The recommendations, if any, from a three-member panel<\/span> composed of members of the Board<\/span> who are franchised dealers<\/span> not of the same line-make<\/span> involved in the hearing<\/span> and who are appointed to the panel<\/span> by the Commissioner<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> An interested party<\/span> in a hearing<\/span> held pursuant to subsection A shall comply with the effective date of compliance established by the Commissioner<\/span> in his decision in such hearing<\/span>, unless a stay<\/span> or extension of such date is granted by the Commissioner<\/span> or the Commissioner<\/span>’s decision is under judicial review and appeal<\/span> as provided in subsection A. If, after notice to such interested party<\/span> and an opportunity to comment, the Commissioner<\/span> finds an interested party<\/span> has not complied with his decision by the designated date of compliance, unless a stay<\/span> or extension of such date has been granted by the Commissioner<\/span> or the Commissioner<\/span>’s decision is under judicial review and appeal<\/span>, the Commissioner<\/span> may assess such interested party<\/span> a civil penalty<\/span> not to exceed $1,000 per day of noncompliance. Civil penalties collected under this subsection shall be deposited into the Commonwealth Transportation Fund<\/span> established pursuant to § 33.2-1524<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> During the hearing<\/span> process, parties may obtain documents and materials<\/span> by discovery<\/span> pursuant to Rules 4:9 and 4:9A of the Supreme Court<\/span> of Virginia. The parties shall exchange reports of experts, which shall meet the standard of Rule 4:1 of the Supreme Court<\/span> of Virginia, at times to be established by the hearing<\/span> officer. The parties may utilize any other form of discovery<\/span> provided under the Rules of Supreme Court<\/span> of Virginia if allowed by the hearing<\/span> officer based on good cause shown. For discovery<\/span> permitted under the Rules of Supreme Court<\/span> of Virginia, a party<\/span> may object<\/span> to the discovery<\/span> sought or seek to limit the discovery<\/span> sought on any grounds permitted by the Rules or applicable law<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nHEARINGS AND OTHER REMEDIES; CIVIL PENALTIES (\u00a7 46.2-1573)\n\nA. In every case of a hearing before the Commissioner authorized under this\narticle, the Commissioner shall give reasonable notice of each hearing to all\ninterested parties, and the Commissioner’s decision shall be binding on\nthe parties, subject to the rights of judicial review and appeal as provided in\nChapter 40 (§ 2.2-4000 et seq.) of Title 2.2. In every case of a hearing\nbefore the Commissioner authorized under this article based on a request or\npetition of a motor vehicle dealer, the manufacturer, factory branch,\ndistributor, or distributor branch shall have the burden of proving by a\npreponderance of the evidence that the manufacturer, factory branch,\ndistributor, or distributor branch has good cause to take the action or actions\nfor which the dealer has filed the petition for a hearing or that such actions\nare reasonable if required under the relevant provision.\n\nB. The hearing process before the Commissioner under this article shall commence\nwithin 90 days of the request for a hearing by prehearing conference between the\nhearing officer and the parties in person, by telephone, or by other electronic\nmeans designated by the Commissioner. The hearing officer will set the hearing\non a date or dates consistent with the rights of due process of the parties. The\nCommissioner’s decision shall be rendered within 60 days from the receipt\nof the hearing officer’s recommendation. Hearings authorized under this\narticle shall be presided over by a hearing officer selected from a list\nprepared by the Executive Secretary of the Supreme Court of Virginia within 60\ndays following the request for a hearing. Reasonable efforts shall be made to\nensure that a hearing officer shall have at least five years of experience as a\nhearing officer in administrative hearings in the Commonwealth, shall have\ntelephone and email capability, and shall be an active member of the Virginia\nState Bar. On request of the Commissioner, the Executive Secretary will name a\nhearing officer from the list, selected on a rotation system administered by the\nExecutive Secretary. The hearing officer shall provide recommendations to the\nCommissioner within 90 days of the conclusion of the hearing.\n\nC. Notwithstanding any contrary provision of this article, the Commissioner\nshall initiate investigations, conduct hearings, and determine the rights of\nparties under this article whenever he is provided information by the Motor\nVehicle Dealer Board or any other person indicating a possible violation of any\nprovision of this article. The Commissioner shall issue a response to the Motor\nVehicle Dealer Board or person reporting the alleged violation and any other\nparty to the investigation providing an explanation of action taken under this\nsection and the reason for such action.\n\nD. For purposes of any matter brought to the Commissioner under subdivisions 3,\n4, 5, 6 and 7b of \u00a7 46.2-1569 with respect to which the Commissioner is to\ndetermine whether there is good cause for a proposed action or whether it would\nbe unreasonable under the circumstances, the Commissioner shall consider:\n\n 1. The volume of the affected dealer’s business in the relevant market\n area;\n\n 2. The nature and extent of the dealer’s investment in its business;\n\n 3. The adequacy of the dealer’s capitalization to the franchisor’s\n standards and the adequacy of the dealer’s facilities, equipment, parts,\n supplies, and personnel;\n\n 4. The effect of the proposed action on the community;\n\n 5. The extent and quality of the dealer’s service under motor vehicle\n warranties;\n\n 6. The dealer’s performance under the terms of its franchise;\n\n 7. Other economic and geographical factors reasonably associated with the\n proposed action; and\n\n 8. The recommendations, if any, from a three-member panel composed of members\n of the Board who are franchised dealers not of the same line-make involved in\n the hearing and who are appointed to the panel by the Commissioner.\n\nE. An interested party in a hearing held pursuant to subsection A shall comply\nwith the effective date of compliance established by the Commissioner in his\ndecision in such hearing, unless a stay or extension of such date is granted by\nthe Commissioner or the Commissioner’s decision is under judicial review\nand appeal as provided in subsection A. If, after notice to such interested\nparty and an opportunity to comment, the Commissioner finds an interested party\nhas not complied with his decision by the designated date of compliance, unless\na stay or extension of such date has been granted by the Commissioner or the\nCommissioner’s decision is under judicial review and appeal, the\nCommissioner may assess such interested party a civil penalty not to exceed\n$1,000 per day of noncompliance. Civil penalties collected under this subsection\nshall be deposited into the Commonwealth Transportation Fund established\npursuant to § 33.2-1524.\n\nF. During the hearing process, parties may obtain documents and materials by\ndiscovery pursuant to Rules 4:9 and 4:9A of the Supreme Court of Virginia. The\nparties shall exchange reports of experts, which shall meet the standard of Rule\n4:1 of the Supreme Court of Virginia, at times to be established by the hearing\nofficer. The parties may utilize any other form of discovery provided under the\nRules of Supreme Court of Virginia if allowed by the hearing officer based on\ngood cause shown. For discovery permitted under the Rules of Supreme Court of\nVirginia, a party may object to the discovery sought or seek to limit the\ndiscovery sought on any grounds permitted by the Rules or applicable law.\n\nHISTORY: 1988, c. 865, \u00a7 46.1-550.5:32; 1989, c. 727; 1992, c. 115; 1994, c.\n702; 1995, cc. 767, 816; 2000, c. 106; 2001, cc. 165, 173; 2009, cc. 173, 176;\n2010, cc. 284, 318; 2011, c. 650; 2015, c. 557; 2019, c. 751; 2020, cc. 1230,\n1275.","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}}