Title 15Commerce and TradeRelease 119-73

§1222 Authorization of suits against manufacturers; amount of recovery; defenses

Title 15 › Chapter CHAPTER 27— - AUTOMOBILE DEALER SUITS AGAINST MANUFACTURERS › § 1222

Last updated Apr 6, 2026|Official source

Summary

A car dealer can sue a manufacturer in a U.S. district court where the manufacturer is located, even if the money at issue is small. If, since August 8, 1956, the manufacturer failed to act in good faith about the franchise or in ending it, the dealer can recover damages and the lawsuit costs. The manufacturer may defend by saying the dealer did not act in good faith.

Full Legal Text

Title 15, §1222

Commerce and Trade — Source: USLM XML via OLRC

An automobile dealer may bring suit against any automobile manufacturer engaged in commerce, in any district court of the United States in the district in which said manufacturer resides, or is found, or has an agent, without respect to the amount in controversy, and shall recover the damages by him sustained and the cost of suit by reason of the failure of said automobile manufacturer from and after August 8, 1956, to act in good faith in performing or complying with any of the terms or provisions of the franchise, or in terminating, canceling, or not renewing the franchise with said dealer: Provided, That in any such suit the manufacturer shall not be barred from asserting in defense of any such action the failure of the dealer to act in good faith.

Reference

Citations & Metadata

Citation

15 U.S.C. § 1222

Title 15Commerce and Trade

Last Updated

Apr 6, 2026

Release point: 119-73