Title 15 — Commerce and TradeRelease 119-73

§1221 Definitions

Title 15 › Chapter CHAPTER 27— - AUTOMOBILE DEALER SUITS AGAINST MANUFACTURERS › § 1221

Last updated Apr 6, 2026|Official source

Summary

Defines key words used in the chapter about car makers and dealers. "Automobile manufacturer" means any business that makes or assembles cars, trucks, or station wagons, and those it controls who distribute them. "Franchise" is the written contract between a manufacturer and a dealer, and an "automobile dealer" is a U.S., Territory, or D.C. business selling or distributing those vehicles under a franchise. "Commerce" means trade across states, territories, or with other countries. "Good faith" means both parties and their staff must act fairly and not use coercion or threats; normal recommendation or persuasion is allowed.

Full Legal Text

Title 15, §1221

Commerce and Trade — Source: USLM XML via OLRC

As used in this chapter—

(a)The term “automobile manufacturer” shall mean any person, partnership, corporation, association, or other form of business enterprise engaged in the manufacturing or assembling of passenger cars, trucks, or station wagons, including any person, partnership, or corporation which acts for and is under the control of such manufacturer or assembler in connection with the distribution of said automotive vehicles.

(b)The term “franchise” shall mean the written agreement or contract between any automobile manufacturer engaged in commerce and any automobile dealer which purports to fix the legal rights and liabilities of the parties to such agreement or contract.

(c)The term “automobile dealer” shall mean any person, partnership, corporation, association, or other form of business enterprise resident in the United States or in any Territory thereof or in the District of Columbia operating under the terms of a franchise and engaged in the sale or distribution of passenger cars, trucks, or station wagons.

(d)The term “commerce” shall mean commerce among the several States of the United States or with foreign nations, or in any Territory of the United States or in the District of Columbia, or among the Territories or between any Territory and any State or foreign nation, or between the District of Columbia and any State or Territory or foreign nation.

(e)The term “good faith” shall mean the duty of each party to any franchise, and all officers, employees, or agents thereof to act in a fair and equitable manner toward each other so as to guarantee the one party freedom from coercion, intimidation, or threats of coercion or intimidation from the other party: Provided, That recommendation, endorsement, exposition, persuasion, urging or argument shall not be deemed to constitute a lack of good faith.

Reference

Citations & Metadata

Citation

15 U.S.C. § 1221

Title 15 — Commerce and Trade

Last Updated

Apr 6, 2026

Release point: 119-73