§1226 — Title 15 Commerce and Trade | U.S. Code

Summary

Arbitration can only be used to settle a dispute about a motor vehicle franchise contract if, after the dispute begins, every party agrees in writing. If the parties choose arbitration, the person who decides the case must give a written explanation of the facts and the legal reasons for the decision. Motor vehicle: meaning given in 49 U.S.C. 30102(6). Motor vehicle franchise contract: a deal where a maker, importer, or distributor sells vehicles to someone to resell and lets them repair and service those vehicles. Applies to contracts made, changed, renewed, or extended after November 2, 2002.

Title 15, §1226

Commerce and Trade — Source: USLM XML via OLRC

(a)(1)For purposes of this subsection—

(A)the term “motor vehicle” has the meaning given such term in section 30102(6) of title 49; 11 See References in Text note below. and

(B)the term “motor vehicle franchise contract” means a contract under which a motor vehicle manufacturer, importer, or distributor sells motor vehicles to any other person for resale to an ultimate purchaser and authorizes such other person to repair and service the manufacturer’s motor vehicles.

(2)Notwithstanding any other provision of law, whenever a motor vehicle franchise contract provides for the use of arbitration to resolve a controversy arising out of or relating to such contract, arbitration may be used to settle such controversy only if after such controversy arises all parties to such controversy consent in writing to use arbitration to settle such controversy.

(3)Notwithstanding any other provision of law, whenever arbitration is elected to settle a dispute under a motor vehicle franchise contract, the arbitrator shall provide the parties to such contract with a written explanation of the factual and legal basis for the award.

(b)Subsection (a) shall apply to contracts entered into, amended, altered, modified, renewed, or extended after November 2, 2002.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 30102(6) of title 49, referred to in subsec. (a)(1)(A), probably should be “section 30102(a)(6) of title 49”, which was redesignated section 30102(a)(7) of title 49 by section 24109(b)(2) of Pub. L. 114–94, div. B, title XXIV, Dec. 4, 2015, 129 Stat. 1706. Codification Section was enacted as part of the 21st Century Department of Justice Appropriations Authorization Act, and not as part of act Aug. 8, 1956, ch. 1038, which comprises this chapter.

§1226 Motor Vehicle Franchise Contract Dispute Resolution Process

Summary

Title 15, §1226

Notes & Related Subsidiaries

Editorial Notes

References in Text

Citations & Metadata