Virginia legislation · 2025 Regular Session
Virginia SB1308: An Act to amend and reenact §§ 46.2-1569.1 and 46.2-1571 of the Code of Virginia, relating to motor vehicle dealers; recall and
Status: Chaptered, March 24, 2025
Motor vehicle dealers; recall and warranty costs, right of first refusal.
What the bill says
An Act to amend and reenact §§ 46.2-1569.1 and 46.2-1571 of the Code of Virginia, relating to motor vehicle dealers; recall and warranty costs; right of first refusal. [S 1308] Approved March 24, 2025 1. That §§ 46.2-1569.1 and 46.2-1571 of the Code of Virginia are amended and reenacted as follows: § 46.2-1569.1. Manufacturer or distributor right of first refusal. A. 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.
From the enrolled text:
An Act to amend and reenact §§ 46.2-1569.1 and 46.2-1571 of the Code of Virginia, relating to motor vehicle dealers; recall and warranty costs; right of first refusal. [S 1308] Approved March 24, 2025 1. That §§ 46.2-1569.1 and 46.2-1571 of the Code of Virginia are amended and reenacted as follows: § 46.2-1569.1. Manufacturer or distributor right of first refusal. A. 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 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; and 3. 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 …