                                 CODE OF VIRGINIA

LICENSES REQUIRED; PENALTY (§ 46.2-1508)

A. It shall be unlawful for any person to engage in business in the Commonwealth
as a motor vehicle dealer or salesperson without first obtaining a license as
provided in this chapter. It shall be unlawful for any person to engage in
business in the Commonwealth as a manufacturer, factory branch, distributor,
distributor branch, or factory or distributor representative without first
obtaining a license from the Department. Every person licensed as a manufactured
home dealer under Chapter 4.2 (&#xA7; 36-85.16 et seq.) of Title 36 shall obtain
a certificate of dealer registration as provided in this chapter. Every person
licensed as a watercraft dealer under Chapter 8 (&#xA7; 29.1-800 et seq.) of
Title 29.1 and who offers for sale watercraft trailers shall obtain a
certificate of dealer registration as provided in this chapter but shall not be
required to obtain a dealer license unless he also sells other types of
trailers. Any nonprofit organization exempt from taxation under &#xA7; 501(c)(3)
of the Internal Revenue Code, after having obtained a nonprofit organization
certificate as provided in this chapter, may consign donated motor vehicles to
licensed Virginia motor vehicle dealers. Any person licensed in another state as
a motor vehicle dealer may sell motor vehicles at wholesale auctions in the
Commonwealth after having obtained a certificate of dealer registration as
provided in this chapter. The offering or granting of a motor vehicle dealer
franchise in the Commonwealth shall constitute engaging in business in the
Commonwealth for purposes of this section, and no new motor vehicle may be sold
or offered for sale in the Commonwealth unless the franchisor of motor vehicle
dealer franchises for that line-make in the Commonwealth, whether such
franchisor is a manufacturer, factory branch, distributor, distributor branch,
or otherwise, is licensed under this chapter. In the event a license issued to a
franchisor of motor vehicle dealer franchises is suspended, revoked, or not
renewed, nothing in this section shall prevent the sale of any new motor vehicle
of such franchisor&#8217;s line-make manufactured in or brought into the
Commonwealth for sale prior to the suspension, revocation or expiration of the
license.
			Violation of any provision of this subsection shall constitute a Class 1
misdemeanor, and such violation may also serve as the basis for injunctive
relief pursuant to subsection B or C.

B. The Board may file a motion with the circuit court for the county or city in
which a person who violated any provision of subsection A is located, or with
the circuit court for the City of Richmond, and, upon a hearing and for cause
shown, the court may grant an injunction restraining such person from violating
any provision of subsection A, regardless of whether an adequate remedy at law
exists. A single act in violation of the provisions of subsection A is
sufficient basis to authorize the issuance of an injunction. The Board shall not
be required to post an injunction bond or other security.

C. Any licensed motor vehicle dealer who sustains injury or damage to his
business or property by reason of a violation of subsection A by any person that
is not licensed as required by subsection A may file a motion with the circuit
court for the county or city in which a person alleged to have committed such
violation is located, and, upon a hearing and for cause shown, the court may
grant a temporary or permanent injunction prohibiting any further such
violation. A single act in violation of the provisions of subsection A shall be
sufficient basis to show injury or damage to the business or property of the
licensed motor vehicle dealer. A licensed motor vehicle dealer shall not be
required to post an injunction bond or other security.

D. If the Board, pursuant to subsection B, or a licensed motor vehicle dealer,
pursuant to subsection C, is awarded an injunction, the court may also award
reasonable attorney fees and costs.

E. Notwithstanding the provisions of subsection A, a manufacturer, factory
branch, distributor, distributor branch, or factory or distributor
representative engaged in the manufacture or distribution of all-terrain
vehicles or off-road motorcycles that does not also manufacture or distribute in
the Commonwealth any motorcycle designed for lawful use on the public highways
shall not be required to obtain a license from the Department.

F. Notwithstanding the provisions of subsection A, any manufacturer or
distributor of transit buses that sells transit buses to a local government
authority or nonprofit provider in the Commonwealth for the purposes of public
transportation, as defined in 49 U.S.C. &#xA7; 5302, shall not be required to
obtain a manufacturers license from the Department of Motor Vehicles or a
dealers license from the Motor Vehicle Dealer Board for such sales. For purposes
of this subsection, &#8220;transit bus&#8221; means a rubber-tired automotive
vehicle used for the provision of public transportation service by or for a
recipient of federal or state funding allocated annually by the Commonwealth
Transportation Board.

HISTORY: Code 1950, § 46-514; 1958, c. 541, § 46.1-523; 1974, c. 189; 1976, c.
362; 1988, c. 865; 1989, c. 727; 1993, c. 123; 1995, cc. 767, 816; 1997, c. 848;
2000, c. 180; 2014, c. 695; 2015, c. 615; 2018, c. 509; 2022, c. 718.