Title 15, Commerce and TradeRelease 119-102

§1222 Authorization of Suits Against Manufacturers; Amount of Recovery; Defenses

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

Last updated Aug 21, 2026|Official source

Summary

A car dealer can sue a manufacturer in federal court where located, with no minimum amount. Since August 8, 1956, the dealer may recover money and court costs when the manufacturer failed to act in good faith about the franchise. The manufacturer can defend by saying the dealer acted in bad 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 15, Commerce and Trade

Last Updated

Aug 21, 2026

Release point: 119-102