Virginia law § 46.2-1569.1 grants manufacturers or distributors the right of first refusal to purchase a dealership's assets or ownership during a proposed sale or transfer. This right is subject to specific conditions, including timely notification, equal or greater consideration for the dealer, and reimbursement of certain expenses. The law aims to balance the interests of manufacturers and dealership owners during ownership transfers.
It allows manufacturers or distributors to match or better a proposed sale or transfer of a dealership's assets or ownership before the sale is finalized.
The manufacturer must notify the dealer within 45 days, ensure the dealer receives equal or greater consideration, and agree to pay reasonable expenses incurred by the new owner.
Yes, the manufacturer must pay reasonable expenses, including attorney's fees, incurred by the proposed new owner, provided proper documentation is submitted.
Yes, if the dealer does not submit or cause to be submitted an accounting of expenses within 30 days of the request, the manufacturer is not required to pay those expenses.