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<law><site_title>Virginia Decoded</site_title><site_url>https://vacode.org</site_url><law_id>74526</law_id><section_number>46.2-1572.4</section_number><catch_line>Manufacturer or distributor use of performance standards</catch_line><edition url="https://vacode.org/2025/" slug="2025" current="TRUE" last_updated="">2025</edition><structure><unit label="title" level="1" order_by="1" identifier="46.2">Motor Vehicles</unit><unit label="subtitle" level="2" order_by="1" identifier="IV">Dealers and Driver Training Schools</unit><unit label="chapter" level="3" order_by="1" identifier="15">Motor Vehicle Dealers</unit><unit label="article" level="4" order_by="1" identifier="7">Franchises</unit></structure><text>
						<section id="A"><p><span class="prefix-number">A.</span> Any performance standard or program that is <span class="dictionary">used</span> by a <span class="dictionary">manufacturer</span> or <span class="dictionary">distributor</span> for measuring dealership performance and may have a <span class="dictionary">material</span> effect on a <span class="dictionary">dealer</span>, and the application of any such standard or program by a <span class="dictionary">manufacturer</span> or <span class="dictionary">distributor</span>, shall be fair, reasonable and <span class="dictionary">equitable</span>, and if based upon a survey, shall be based upon a statistically valid sample. Upon the request of any <span class="dictionary">dealer</span>, a <span class="dictionary">manufacturer</span> or <span class="dictionary">distributor</span> shall disclose in writing to the <span class="dictionary">dealer</span> a description of how a performance standard or program is designed and all relevant information <span class="dictionary">used</span> in the application of the performance standard or program to that <span class="dictionary">dealer</span>. <a id="paragraph-267825" class="section-permalink" href="https://vacode.org/46.2-1572.4/#A"><i class="fa fa-link"/></a></p></section>
						<section id="B"><p><span class="prefix-number">B.</span> A <span class="dictionary">manufacturer</span> or distributor shall not use any data, calculations, or statistical determinations of the sales performance of a <span class="dictionary">dealer</span> for any purpose, including (i) loss of incentive payments or other benefits, (ii) claim of breach or threats thereof, or (iii) notice of termination or threats thereof for the period of time the <span class="dictionary">manufacturer</span>, <span class="dictionary">factory branch</span>, distributor, or <span class="dictionary">distributor branch</span> has established an agreement, program, incentive program, or provision for loss of incentive payments or other benefits that causes a <span class="dictionary">dealer</span> to refrain from selling any <span class="dictionary">used motor vehicle</span> subject to (a) recall, (b) stop sale directive, (c) technical service bulletin, or (d) other <span class="dictionary">manufacturer</span>, <span class="dictionary">factory branch</span>, distributor, or <span class="dictionary">distributor branch</span> notification to perform work on a <span class="dictionary">dealer</span>&#x2019;s <span class="dictionary">used motor vehicles</span> in its inventory when there is no remedy or there are no parts to remediate each such affected <span class="dictionary">used motor vehicle</span> from the <span class="dictionary">manufacturer</span>, <span class="dictionary">factory branch</span>, distributor, or <span class="dictionary">distributor branch</span> and for 90 days after the termination of such agreement, program, incentive program, or provision for loss of incentive payments or other benefits.
			The data on which the <span class="dictionary">manufacturer</span> or distributor seeks to rely under this subsection shall only be for a period or periods not excluded under this subsection. For any performance standard or program that is used by a <span class="dictionary">manufacturer</span> or distributor for measuring dealership performance during the period or periods excluded under this subsection, a <span class="dictionary">dealer</span> shall be deemed in compliance with any such program requirements related to sales performance or sales or service customer satisfaction performance of a <span class="dictionary">dealer</span>.
			This subsection shall not prevent a <span class="dictionary">manufacturer</span>, <span class="dictionary">factory branch</span>, distributor, or <span class="dictionary">distributor branch</span> from (1) requiring that a motor vehicle not be subject to an open recall or stop sale directive in <span class="dictionary">order</span> to be qualified, remain qualified, or be sold as a certified pre-owned vehicle or similar designation; (2) paying incentives for selling used vehicles with no unremedied recalls; (3) paying incentives for performing recall repairs on a vehicle in the <span class="dictionary">dealer</span>&#x2019;s inventory; or (4) instructing that a <span class="dictionary">dealer</span> repair used vehicles of the <span class="dictionary">line-make</span> for which the <span class="dictionary">dealer</span> holds a <span class="dictionary">franchise</span> with an open recall, provided that the instruction does not involve coercion that imposes a <span class="dictionary">penalty</span> or provision of loss of benefits on the <span class="dictionary">dealer</span>. <a id="paragraph-267826" class="section-permalink" href="https://vacode.org/46.2-1572.4/#B"><i class="fa fa-link"/></a></p></section>
						<section id="C"><p><span class="prefix-number">C.</span> A <span class="dictionary">dealer</span> may apply to the <span class="dictionary">manufacturer</span>, <span class="dictionary">factory branch</span>, distributor, or <span class="dictionary">distributor branch</span> for adjustment to data, calculations, or statistical determinations of sales performance or sales and service customer satisfaction performance for any period of time that such <span class="dictionary">dealer</span> has at least five percent of its <span class="dictionary">new motor vehicle</span> inventory subject to a recall or stop sale directive and for 90 days after the end of such period of time. Within 30 days of application for adjustment, the <span class="dictionary">manufacturer</span>, <span class="dictionary">factory branch</span>, distributor, or <span class="dictionary">distributor branch</span> shall use reasonable efforts to review and adjust the data, calculations, or other statistical determinations back to the date that the <span class="dictionary">dealer</span> was prevented from selling the <span class="dictionary">new motor vehicles</span>. A <span class="dictionary">dealer</span> applying for adjustment shall have the burden of showing that the prevention of sale had a <span class="dictionary">material</span>, adverse impact on such <span class="dictionary">dealer</span>&#x2019;s new vehicle sales performance or sales and service customer satisfaction performance, and the adjustments by the <span class="dictionary">manufacturer</span>, <span class="dictionary">factory branch</span>, distributor, or <span class="dictionary">distributor branch</span> shall use reasonable efforts to remediate the effect of the impact shown on the data, calculations, or statistical determinations of sales performance or sales and service customer satisfaction performance.
			The <span class="dictionary">manufacturer</span> shall take into consideration any adjustments to a <span class="dictionary">dealer</span>&#x2019;s new vehicle sales performance or sales and service customer satisfaction performance made by the <span class="dictionary">manufacturer</span> under this subsection in determining a <span class="dictionary">dealer</span>&#x2019;s compliance with a <span class="dictionary">manufacturer</span> performance standard or program. <a id="paragraph-267827" class="section-permalink" href="https://vacode.org/46.2-1572.4/#C"><i class="fa fa-link"/></a></p></section></text><history>2001, cc. 165, 173; 2016, cc. 432, 534.</history><metadata></metadata></law>
