                                 CODE OF VIRGINIA

OTHER COERCION OF DEALERS; TRANSFER, GRANT, SUCCESSION TO AND CANCELLATION OF
DEALER FRANCHISES; DELIVERY OF RECREATIONAL VEHICLES, PARTS, AND ACCESSORIES (§
46.2-1573.5)

It shall be unlawful for any manufacturer, factory branch, distributor, or
distributor branch, or any field representative, officer, agent, or their
representatives:

1. To coerce or attempt to coerce any dealer to accept delivery of any
recreational vehicle or recreational vehicles, parts or accessories therefor, or
any other commodities that have not been ordered by the dealer.

2. To coerce or attempt to coerce any dealer to enter into an agreement with the
manufacturer, factory branch, distributor, or distributor branch, or
representative thereof, or do any other act unfair to the dealer, by threatening
to cancel any franchise existing between the manufacturer, factory branch,
distributor, distributor branch, or representative thereof and the dealer.

3. To coerce or attempt to coerce any dealer to join, contribute to, or
affiliate with any advertising association.

4. To prevent or refuse to approve the sale or transfer of the ownership of a
dealership by the sale of the business, stock transfer, or otherwise, or the
transfer, sale, or assignment of a dealer franchise, or a change in the
executive management or principal operator of the dealership, unless the
franchisor provides written notice to the dealer of its objection and the
reasons therefor at least 30 days prior to the proposed effective date of the
transfer, sale, assignment, or change. No such objection shall be effective to
prevent the sale, transfer, assignment, or change if the Commissioner has
determined, if requested in writing by the dealer within 30 days after receipt
of an objection to the proposed sale, transfer, or change, and after a hearing
on the matter, that the failure to permit or honor the sale, transfer,
assignment, or change is unreasonable under the circumstances. No franchise may
be sold, assigned, or transferred unless (i) the franchisor has been given at
least 90 days&#8217; prior written notice by the dealer as to the identity,
financial ability, and qualifications of the proposed transferee and (ii) the
sale or transfer of the franchise and business will not involve, without the
franchisor&#8217;s consent, a relocation of the business.

5. To grant an additional franchise for a particular line-make of recreational
vehicle in a relevant market area in which a dealer or dealers in that line-make
are already located unless the franchisor has first advised in writing all other
dealers in the line-make in the relevant market area. No such additional
franchise may be established at the proposed site unless the Commissioner has
determined, if requested by a dealer of the same line-make in the relevant
market area within 30 days after receipt of the franchisor&#8217;s notice of
intention to establish the additional franchise, and after a hearing on the
matter, that there is reasonable evidence that after the grant of the new
franchise, the market will support all of the dealers in that line-make in the
relevant market area. Establishing a franchised dealer in a relevant market area
to replace a franchised dealer that has not been in operation for more than two
years shall constitute the establishment of a new franchise subject to the terms
of this subdivision. The two-year period for replacing a franchised dealer shall
begin on the day the franchise was terminated or, if a termination hearing was
held, on the day the franchisor was legally permitted finally to terminate the
franchise. This subdivision shall not apply to (i) the relocation of an existing
dealer within that dealer&#8217;s relevant market area if the relocation site is
to be more than 10 miles distant from any other dealer for the same line-make;
(ii) the relocation of an existing dealer within that dealer&#8217;s relevant
market area if the relocation site is to be more distant than the existing site
from all other dealers of the same line-make in that relevant market area; or
(iii) the relocation of an existing new recreational vehicle dealer within two
miles of the existing site of the relocating dealer.

6. Except as otherwise provided in this subdivision and notwithstanding the
terms of any franchise, to terminate, cancel, or refuse to renew the franchise
of any dealer without good cause and unless (i) the dealer and the Commissioner
have received written notice of the franchisor&#8217;s intentions at least 60
days prior to the effective date of such termination, cancellation, or the
expiration date of the franchise, setting forth the specific grounds for the
action, and (ii) the Commissioner has determined, if requested in writing by the
dealer within the 60-day period and, after a hearing on the matter, that there
is good cause for the termination, cancellation, or nonrenewal of the franchise.
In any case where a petition is made to the Commissioner for a determination as
to good cause for the termination, cancellation, or nonrenewal of a franchise,
the franchise in question shall continue in effect pending the
Commissioner&#8217;s decision or, if that decision is appealed to the circuit
court, pending the decision of the circuit court. In any case in which a
franchisor neither advises a dealer that it does not intend to renew a franchise
nor takes any action to renew a franchise beyond its expiration date, the
franchise in question shall continue in effect on the terms last agreed to by
the parties. Notwithstanding the other provisions of this subdivision, notice of
termination, cancellation, or nonrenewal may be provided to a dealer by a
franchisor not less than 15 days prior to the effective date of such
termination, cancellation, or nonrenewal when the grounds for such action are
any of the following:
			a. Insolvency of the franchised recreational vehicle dealer or filing of any
petition by or against the franchised recreational vehicle dealer, under any
bankruptcy or receivership law, leading to liquidation or that is intended to
lead to liquidation of the franchisee&#8217;s business;
			b. Failure of the franchised recreational vehicle dealer to conduct its
customary sales and service operations during its posted business hours for
seven consecutive business days, except where the failure results from acts of
God or circumstances beyond the direct control of the franchised recreational
vehicle dealer;
			c. Revocation of any license that the franchised recreational vehicle dealer
is required to have to operate a dealership; or
			d. Conviction of the dealer or any principal of the dealer of a felony.
			The change or discontinuance of a marketing or distribution system of a
particular line-make product by a manufacturer or distributor, while the name
identification of the product is continued in substantial form by the same or
different manufacturer or distributor, may be considered to be a franchise
termination, cancellation, or nonrenewal.

7. To fail to provide continued parts and service support to a dealer that holds
a franchise in a discontinued line-make for at least five years from the date of
such discontinuance.

8. To fail to allow a dealer the right at any time to designate a member of his
family as a successor to the dealership in the event of the death or incapacity
of the dealer. It shall be unlawful to prevent or refuse to honor the succession
to a dealership by a member of the family of a deceased or incapacitated dealer
if the franchisor has not provided to the member of the family previously
designated by the dealer as his successor written notice of its objections to
the succession and of such person&#8217;s right to seek a hearing on the matter
before the Commissioner pursuant to this article, and the Commissioner
determines, if requested in writing by such member of the family within 30 days
of receipt of such notice from the franchisor, and after a hearing on the matter
before the Commissioner pursuant to this article, that the failure to permit or
honor the succession is unreasonable under the circumstances. No member of the
family may succeed to a franchise unless (i) the franchisor has been given
written notice as to the identity, financial ability, and qualifications of the
member of the family in question and (ii) the succession to the franchise will
not involve, without the franchisor&#8217;s consent, a relocation of the
business.

9. To fail to ship monthly to any dealer, if ordered by the dealer, the number
of new recreational vehicles of each make, series, and model needed by the
dealer to receive a percentage of total new recreational vehicle sales of each
make, series, and model equitably related to the total new recreational vehicle
production or importation currently being achieved nationally by each make,
series, and model covered under the franchise. Upon the written request of any
dealer holding its sales or sales and service franchise, the manufacturer or
distributor shall disclose to the dealer in writing the basis upon which new
recreational vehicles are allocated, scheduled, and delivered to the dealers of
the same line-make. If allocation is at issue in a request for a hearing, the
dealer may demand the Commissioner to direct that the manufacturer or
distributor provide to the dealer, within 30 days of such demand, all records of
sales and all records of distribution of all recreational vehicles to the same
line-make dealers who compete with the dealer requesting the hearing.

10. To require or otherwise coerce a dealer to underutilize the dealer&#8217;s
facilities.

11. To include in any franchise with a recreational vehicle dealer terms that
are contrary to, prohibited by, or otherwise inconsistent with the requirements
of this chapter.

12. To require under any franchise agreement a recreational vehicle dealer to
pay the attorney fees of the manufacturer or distributor related to hearings and
appeals brought under this article.

13. To fail to include in any franchise with a recreational vehicle dealer the
following language: &#8220;If any provision herein contravenes the laws or
regulations of any state or other jurisdiction wherein this agreement is to be
performed, or denies access to the procedures, forums, or remedies provided for
by such laws or regulations, such provision shall be deemed to be modified to
conform to such laws or regulations, and all other terms and provisions shall
remain in full force,&#8221; or words to that effect.

HISTORY: 1995, cc. 767, 816, § 46.2-1976; 1996, cc. 1043, 1052; 2015, c. 615.