Virginia law § 46.2-1573.5 prohibits manufacturers, distributors, and their representatives from coercing car dealers in various ways, including accepting unrequested goods, entering unfair agreements, or blocking ownership transfers. The law aims to protect dealer rights and ensure fair dealings in franchise and ownership matters. It also requires written notice from franchisors regarding objections to dealership transfers or changes.
It is illegal for manufacturers or distributors to coerce dealers into accepting unrequested goods, entering unfair agreements, or blocking ownership transfers without proper notice.
The franchisor must provide written notice of any objection at least 30 days before the proposed transfer or sale, including reasons for the objection.
Not entirely; the law requires the franchisor to be notified and to provide reasons for any objections, which can be challenged if they are unfounded.
Yes, it applies broadly to recreational vehicle, parts, and accessory dealers, as well as other motor vehicle dealerships in Virginia.