                                 CODE OF VIRGINIA

DISCLOSURE OF RETURNED VEHICLES; PENALTY (§ 59.1-207.16:1)

A. If a motor vehicle that is returned to the manufacturer or distributor either
under this chapter or by judgment, decree, or arbitration award in this or any
other state and is then transferred by a manufacturer or distributor to a
dealer, licensed under Chapter 15 (&#xA7; 46.2-1500 et seq.) of Title 46.2, in
Virginia, the manufacturer or distributor shall disclose this information to the
Virginia dealer.

B. If the returned vehicle is then made available for resale or for another
lease, the manufacturer shall, prior to sale or lease, disclose in writing in a
clear and conspicuous manner, on a separate piece of paper in ten-point capital
type, to the Virginia dealer that this motor vehicle was returned to the
manufacturer, distributor or factory branch, the nature of the defect which
resulted in the return, and the condition of the motor vehicle at the time of
transfer to the Virginia dealer. It shall be the responsibility of the dealer
that receives this disclosure to give notice of its contents to any prospective
purchaser or lessee prior to sale or lease, and to transfer the disclosure, or a
copy thereof, to the next purchaser or lessee. A dealer&#8217;s responsibility
under this section shall cease upon the sale or lease of the affected motor
vehicle to the first purchaser or lessee not for resale or lease.

C. Any manufacturer or distributor who violates this section of the Motor
Vehicle Warranty Enforcement Act shall be guilty of a Class 3 misdemeanor.

HISTORY: 1994, c. 578; 1998, c. 671.