Pub. 1 Issue 3

VIRGINIA AUTO DEALER www.vada.com 22 How well do you think you know the laws applicable to your business? Are the following statements True or False? I am selling my multifranchise dealer- ship to a dealer from another state. One of my manufacturers is threatening to block the sale until I remove their fran- chise from the deal and sell it to their preferred purchaser under a right of rst refusal in the franchise agreement. VA Code prevents the manufacturer from holding me hostage. TRUE • Legislation passed in 2019 prevents a manufacturer from cherry-picking one franchise out of a multifranchise deal. • A manufacturer cannot exercise a right of first refusal when the pur- chaser in a buy sell is a franchised dealer in any state. • e only exception is if the exercise of the ROFR is in connection with a manufacturer’s established minority program. Beginning July 1st, the fee for safety inspections for cars will be $20. TRUE • A 2019 bill raised the amount of the fee for safety inspections from $16 to $20. • Where the Virginia State Police cur- rently receives $0.50 of the $16, on July 1, 2019 they will receive $0.70 of the $20. • We worked closely this session with state police to streamline the safety inspector certi cation process. With the increased funds, state police have agreed to hire more non-troopers to provide greater access to testing and a quicker turnaround for applicants. Under the revised buyers guide of the new Used Car Rule, if I o er a used vehicle with only a factory certi ed pre-owned warranty, I must note on the buyers guide that the vehicle is being sold as is. TRUE • e revised buyers guide changes the method by which a dealer can disclose warranties, limiting the box for warran- ty disclosures to dealer warranties. • If the only applicable warranty is a non-dealer warranty, and there is no dealer warranty, then the box marked “AS IS – NO DEALER WARRANTY” must be checked. A dealer need not disclose non-dealer warranties. If it does, it must disclose them in the area below the box for noti cation as to whether a vehicle is sold as is or with a limited warranty. • If you wish to disclose the terms of the factory warranty, you may do so in the “systems covered – duration” section – but you must make clear who is provid- ing the warranty. TRUE FALSE OR