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<law><site_title>Virginia Decoded</site_title><site_url>https://vacode.org</site_url><law_id>73753</law_id><section_number>46.2-1573.36</section_number><catch_line>Hearings and other remedies; civil penalties</catch_line><edition url="https://vacode.org/2025/" slug="2025" current="TRUE" last_updated="">2025</edition><referred_to_by><reference>33.2-1530</reference></referred_to_by><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="7.4">Motorcycle Franchises</unit></structure><text>
						<section id="A"><p><span class="prefix-number">A.</span> In every case of a <span class="dictionary">hearing</span> before the <span class="dictionary">Commissioner</span> authorized under this article, the <span class="dictionary">Commissioner</span> shall give reasonable notice of each <span class="dictionary">hearing</span> to all interested parties, and the <span class="dictionary">Commissioner</span>&#x2019;s decision shall be binding on the parties, subject to the rights of judicial review and <span class="dictionary">appeal</span> as provided in the Administrative Process Act (&#xA7; <a class="law" title="Short title; purpose" href="/2.2-4000/">2.2-4000</a> et seq.). In every case of a <span class="dictionary">hearing</span> before the <span class="dictionary">Commissioner</span> authorized under this article based on a request or <span class="dictionary">petition</span> of a <span class="dictionary">dealer</span>, the <span class="dictionary">manufacturer</span>, <span class="dictionary">factory branch</span>, distributor, or <span class="dictionary">distributor branch</span> shall have the burden of proving by a <span class="dictionary">preponderance of the evidence</span> that the <span class="dictionary">manufacturer</span>, <span class="dictionary">factory branch</span>, distributor, or <span class="dictionary">distributor branch</span> has good cause to take the action for which the <span class="dictionary">dealer</span> has filed the <span class="dictionary">petition</span> for a <span class="dictionary">hearing</span> or that such action is reasonable if required under the relevant provision. <a id="paragraph-265229" class="section-permalink" href="https://vacode.org/46.2-1573.36/#A"><i class="fa fa-link"/></a></p></section>
						<section id="B"><p><span class="prefix-number">B.</span> <span class="dictionary">Hearings</span> before the <span class="dictionary">Commissioner</span> under this article shall commence within 90 days of the request for a <span class="dictionary">hearing</span>, and the <span class="dictionary">Commissioner</span>&#x2019;s decision shall be rendered within 60 days from the receipt of the <span class="dictionary">hearing</span> officer&#x2019;s recommendation. <span class="dictionary">Hearings</span> authorized under this article shall be presided over by a <span class="dictionary">hearing</span> officer selected from a list prepared by the Executive Secretary of the Supreme <span class="dictionary">Court</span>. On request of the <span class="dictionary">Commissioner</span>, the Executive Secretary will name a <span class="dictionary">hearing</span> officer from the list, selected on a rotation system administered by the Executive Secretary. The <span class="dictionary">hearing</span> officer shall provide recommendations to the <span class="dictionary">Commissioner</span> within 90 days of the conclusion of the <span class="dictionary">hearing</span>. <a id="paragraph-265230" class="section-permalink" href="https://vacode.org/46.2-1573.36/#B"><i class="fa fa-link"/></a></p></section>
						<section id="C"><p><span class="prefix-number">C.</span> Notwithstanding any contrary provision of this article, the <span class="dictionary">Commissioner</span> shall initiate investigations, conduct <span class="dictionary">hearings</span>, and determine the rights of parties under this article whenever he is provided information indicating a possible violation of any provision of this article. <a id="paragraph-265231" class="section-permalink" href="https://vacode.org/46.2-1573.36/#C"><i class="fa fa-link"/></a></p></section>
						<section id="D"><p><span class="prefix-number">D.</span> For purposes of any matter brought to the <span class="dictionary">Commissioner</span> under subdivisions 3, 4, 5, 6, and 9 of &#xA7;&#xA0;<a class="law" title="Other coercion of dealers; transfer, grant, succession to and cancellation of dealer franchises; delivery of motorcycles, parts, and accessories" href="/46.2-1573.28/">46.2-1573.28</a> with respect to which the <span class="dictionary">Commissioner</span> is to determine whether there is good cause for a proposed action or whether it would be unreasonable under the circumstances, the <span class="dictionary">Commissioner</span> shall consider: <a id="paragraph-265232" class="section-permalink" href="https://vacode.org/46.2-1573.36/#D"><i class="fa fa-link"/></a></p></section>
						<section id="D1" class="indent-1"><p><span class="prefix-number">1.</span> The volume of the affected <span class="dictionary">dealer</span>&#x2019;s business in the <span class="dictionary">relevant market area</span>; <a id="paragraph-265233" class="section-permalink" href="https://vacode.org/46.2-1573.36/#D1"><i class="fa fa-link"/></a></p></section>
						<section id="D2" class="indent-1"><p><span class="prefix-number">2.</span> The nature and extent of the <span class="dictionary">dealer</span>&#x2019;s investment in its business; <a id="paragraph-265234" class="section-permalink" href="https://vacode.org/46.2-1573.36/#D2"><i class="fa fa-link"/></a></p></section>
						<section id="D3" class="indent-1"><p><span class="prefix-number">3.</span> The adequacy of the <span class="dictionary">dealer</span>&#x2019;s service facilities, equipment, parts, supplies, and personnel; <a id="paragraph-265235" class="section-permalink" href="https://vacode.org/46.2-1573.36/#D3"><i class="fa fa-link"/></a></p></section>
						<section id="D4" class="indent-1"><p><span class="prefix-number">4.</span> The effect of the proposed action on the community; <a id="paragraph-265236" class="section-permalink" href="https://vacode.org/46.2-1573.36/#D4"><i class="fa fa-link"/></a></p></section>
						<section id="D5" class="indent-1"><p><span class="prefix-number">5.</span> The extent and quality of the <span class="dictionary">dealer</span>&#x2019;s service under <span class="dictionary">motorcycle</span> warranties; <a id="paragraph-265237" class="section-permalink" href="https://vacode.org/46.2-1573.36/#D5"><i class="fa fa-link"/></a></p></section>
						<section id="D6" class="indent-1"><p><span class="prefix-number">6.</span> The <span class="dictionary">dealer</span>&#x2019;s performance under the terms of its <span class="dictionary">franchise</span>; and <a id="paragraph-265238" class="section-permalink" href="https://vacode.org/46.2-1573.36/#D6"><i class="fa fa-link"/></a></p></section>
						<section id="D7" class="indent-1"><p><span class="prefix-number">7.</span> Other economic and geographical factors reasonably associated with the proposed action.
				With respect to subdivision 6, any performance standard or program for measuring dealership performance that 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 distributor, 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 distributor 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-265239" class="section-permalink" href="https://vacode.org/46.2-1573.36/#D7"><i class="fa fa-link"/></a></p></section>
						<section id="E"><p><span class="prefix-number">E.</span> An interested <span class="dictionary">party</span> in a <span class="dictionary">hearing</span> held pursuant to subsection A shall comply with the effective date of compliance established by the <span class="dictionary">Commissioner</span> in his decision in such <span class="dictionary">hearing</span>, unless a <span class="dictionary">stay</span> or extension of such date is granted by the <span class="dictionary">Commissioner</span> or the <span class="dictionary">Commissioner</span>&#x2019;s decision is under judicial review and <span class="dictionary">appeal</span> as provided in subsection A. If, after notice to such interested <span class="dictionary">party</span> and an opportunity to comment, the <span class="dictionary">Commissioner</span> finds an interested <span class="dictionary">party</span> has not complied with his decision by the designated date of compliance, unless a <span class="dictionary">stay</span> or extension of such date has been granted by the <span class="dictionary">Commissioner</span> or the <span class="dictionary">Commissioner</span>&#x2019;s decision is under judicial review and <span class="dictionary">appeal</span>, the <span class="dictionary">Commissioner</span> may assess such interested <span class="dictionary">party</span> a civil <span class="dictionary">penalty</span> not to exceed $1,000 per day of noncompliance. Civil penalties collected under this subsection shall be deposited into the <span class="dictionary">Highway</span> Maintenance and Operating <span class="dictionary">Fund</span> established pursuant to &#xA7; <a class="law" title="Highway Maintenance and Operating Fund" href="/33.2-1530/">33.2-1530</a>. <a id="paragraph-265240" class="section-permalink" href="https://vacode.org/46.2-1573.36/#E"><i class="fa fa-link"/></a></p></section></text><history>1996, cc. 1043, 1052, &#xA7; 46.2-1993.73; 2000, c. 106; 2015, c. 615; 2020, cc. 984, 1230, 1275.</history><metadata></metadata></law>
