                                 CODE OF VIRGINIA

FILING OF FRANCHISES (§ 46.2-1566)

A. It shall be the responsibility of each motor vehicle manufacturer, factory
branch, distributor, distributor branch, or subsidiary thereof to file with the
Commissioner by certified mail a true copy of each new, amended, modified, or
different form or addendum offered to more than one dealer which affects the
rights, responsibilities, or obligations of the parties of a franchise or sales,
service, or sales and service agreement to be offered to a motor vehicle dealer
or prospective motor vehicle dealer in the Commonwealth no later than 60 days
prior to the date the franchise or sales agreement is offered. In no event shall
a new, amended, modified, or different form of franchise or sales, service, or
sales and service agreement be offered a motor vehicle dealer in the
Commonwealth until the form has been determined by the Commissioner as not
containing terms inconsistent with the provisions of this chapter. At the time a
filing is made with the Commissioner pursuant to this section, the manufacturer,
factory branch, distributor, distributor branch, or subsidiary shall also give
written notice together with a copy of the papers so filed to the affected
dealer or dealers.

B. The Department shall inform the manufacturer, factory branch, distributor,
distributor branch, or subsidiary and the dealer or dealers or other parties
named in the agreement of a preliminary recommendation as to the consistency of
the agreement with the provisions of this chapter. If any of the parties
involved have comments on the preliminary recommendation, they must be submitted
to the Commissioner within 30 days of receiving the preliminary recommendation.
The Commissioner shall render his decision within 15 days of receiving comments
from the parties involved. If the Commissioner does not receive comments within
the 30-day time period, he shall make the final determination as to the
consistency of the agreement with the provisions of this chapter.

C. Any form or addendum that is not filed as required by this section may not be
the basis for (i) any reduction in compensation due to a dealer from the
franchisor, (ii) any franchisor demand or requirement by which a dealer must
abide, or (iii) any penalty or detriment a franchisor imposes or attempts to
impose on a motor vehicle dealer. This section shall not apply to any dealer
program or dealer incentive that is not inconsistent with any form or addendum
already on file by the manufacturer with the state or that expires within 12
months of its start date, or the continuation, renewal, or modification of any
dealer program or dealer incentive that was in place as of July 1, 2015. This
section shall not apply to any consumer program or consumer incentive, including
discount pricing programs.

HISTORY: 1988, c. 865, § 46.1-550.5:24; 1989, c. 727; 1994, c. 537; 1995, cc.
767, 816; 2015, c. 236.