                                 CODE OF VIRGINIA

LIMITED RIGHT OF DEALERS TO SELL NEW MOTOR VEHICLES FOLLOWING TERMINATION OF
FRANCHISE (§ 46.2-1573.02)

Notwithstanding any provision of this title to the contrary, a motor vehicle
dealer shall have the right, for 180 days following the termination of its
franchise, to continue to sell and advertise as new any existing new motor
vehicle inventory of the line-make of the terminated franchise, under the
following circumstances:

1. The vehicle was acquired in the ordinary course of business as a new vehicle
by a dealer franchised to sell that vehicle;

2. The franchise agreement of the dealer is terminated, canceled, or rejected by
the manufacturer, factory branch, distributor, or distributor branch and the
termination, cancellation, or rejection is not a result of the revocation of the
dealer&#8217;s license to operate as a dealer or the dealer&#8217;s conviction
of a crime; and

3. The vehicle was held in the inventory of the dealer on the date of the
franchise agreement&#8217;s termination.
			This provision does not entitle a dealer whose franchise agreement has been
terminated, canceled, or rejected to continue to perform warranty service
repairs or continue to be eligible to offer or receive consumer or dealer
incentives offered by the manufacturer, factory branch, distributor, or
distributor branch, except as earned by the dealer prior to termination of the
franchise agreement.

HISTORY: 2010, cc. 284, 318.