SEARCH SITE
VIRGINIA LAW PORTAL
- Code of Virginia
- Virginia Administrative Code
- Constitution of Virginia
- Charters
- Authorities
- Compacts
- Uncodified Acts
- RIS Users (account required)
SEARCHABLE DATABASES
- Bills & Resolutions
session legislation - Bill Summaries
session summaries - Reports to the General Assembly
House and Senate documents - Legislative Liaisons
State agency contacts
ACROSS SESSIONS
- Subject Index: Since 1995
- Bills & Resolutions: Since 1994
- Summaries: Since 1994
Developed and maintained by the Division of Legislative Automated Systems.
2003 SESSION
Be it enacted by the General Assembly of Virginia:
1. That § 46.2-1569.1 of the Code of Virginia is amended and reenacted as follows:
§ 46.2-1569.1. Manufacturer or distributor right of first refusal.
Notwithstanding the terms of any franchise agreement, in the event of a proposed sale or transfer of a dealership, the manufacturer or distributor shall be permitted to exercise a right of first refusal to acquire the new vehicle dealer's assets or ownership, if such sale or transfer is conditioned upon the manufacturer's or dealer's entering into a dealer agreement with the proposed new owner or transferee, only if all the following requirements are met:
1. To exercise its right of first refusal, the manufacturer or distributor must
notify the dealer in writing within forty-five 45 days of its receipt of the
completed proposal for the proposed sale or transfer;
2. The exercise of the right of first refusal will result in the dealer's and dealer's owner's receiving the same or greater consideration as they have contracted to receive in connection with the proposed change of ownership or transfer;
3. The proposed sale or transfer of the dealership's assets does not involve
the transfer or sale to a member or members of the family of one or more dealer
owners, or to a qualified manager or a partnership or, limited liability
company, corporation, or other entity controlled by such persons; and
4. The manufacturer or distributor agrees to pay the reasonable expenses,
including attorney's fees which do not exceed the usual, customary, and
reasonable fees charged for similar work done for other clients, incurred by
the proposed new owner and transferee prior to the manufacturer's or
distributor's exercise of its right of first refusal in negotiating and
implementing the contract for the proposed sale or transfer of the dealership
or dealership assets. Notwithstanding the foregoing, no payment of such
expenses and attorney's fees shall be required if the dealer has not submitted
or caused to be submitted an accounting of those expenses within thirty 30 days
of the dealer's receipt of the manufacturer's or distributor's written request for such an
accounting. Such accounting may be requested by a manufacturer or distributor before exercising its
right of first refusal.