Virginia law § 46.2-1570 protects motor vehicle dealers' franchises when a distributor's contract is terminated or discontinued. It ensures existing franchises remain in effect, with substitutions made if a new distributor takes over. The law also addresses franchise termination rights if a manufacturer discontinues or transfers a line-make without honoring existing dealer agreements.
Your franchise remains in effect, and a new distributor or manufacturer will substitute for the discontinued one, with franchises modified accordingly.
Yes, if the manufacturer discontinues or transfers a line-make and does not honor existing dealer agreements, dealers may be entitled to compensation.
If the transfer does not honor existing franchise agreements, it may be considered a franchise termination, allowing dealers to seek compensation.
Dealers' franchises generally continue, but they may be entitled to modifications or compensation if the discontinuation involves a transfer or sale that violates franchise rights.