A. Each T&M vehicle manufacturer, factory branch, distributor, or distributorbranch shall (i) specify in writing to each of its T&M vehicle dealerslicensed in the Commonwealth the dealer's obligations for preparation,delivery, and warranty service on its products and (ii) compensate the dealerfor warranty parts, service and diagnostic work required of the dealer by themanufacturer or distributor as follows:
1. Compensation of a dealer for warranty parts, service and diagnostic workshall not be less than the amounts charged by the dealer for themanufacturer's or distributor's original parts, service and diagnostic workto retail customers for nonwarranty service, parts and diagnostic workinstalled or performed in the dealer's service department unless the amountsare not reasonable;
2. For purposes of determining warranty parts and service compensation,menu-priced parts or services, group discounts, special event discounts, andspecial event promotions shall not be considered in determining amountscharged by the dealer to retail customers;
3. Increases in dealer warranty parts and service compensation and diagnosticwork compensation, pursuant to this section, shall be requested by the dealerin writing, shall be based on 100 consecutive repair orders or all repairorders over a ninety-day period, whichever occurs first and, in the case ofparts, shall be stated as a percentage of markup which shall be uniformlyapplied to all the manufacturer's or distributor's parts;
4. In the case of warranty parts compensation, the provisions of thissubsection shall be effective only for model year 1992 and succeeding modelyears;
5. If a manufacturer or distributor furnishes a part to a dealer at no costfor use by the dealer in performing work for which the manufacturer ordistributor is required to compensate the dealer under this section, themanufacturer or distributor shall compensate the dealer for the part in thesame manner as warranty parts compensation, less the wholesale costs, forsuch part as listed in the manufacturer's current price schedules. Amanufacturer or distributor may pay the dealer a reasonable handling feeinstead of the compensation otherwise required by this subsection for specialhigh-performance complete engine assemblies in limited production T&Mvehicles which constitute less than five percent of model productionfurnished to the dealer at no cost, if the manufacturer or distributorexcludes such special high-performance complete engine assemblies indetermining whether the amounts requested by the dealer for warrantycompensation are consistent with the amounts that the dealer charges itsother retail service customers for parts used by the dealer to performsimilar work; or
6. In the case of service work, manufacturer original parts or partsotherwise specified by the manufacturer or distributor, and parts provided bya dealer either pursuant to an adjustment program as defined in § 59.1-207.34or as otherwise requested by the manufacturer or distributor, the dealershall be compensated in the same manner as for warranty service or parts.
This section does not apply to compensation for parts such as components,systems, fixtures, appliances, furnishings, accessories, and features thatare designed, used, and maintained primarily for nonvehicular, residentialpurposes. Warranty audits of dealer records may be conducted by themanufacturer, factory branch, distributor, or distributor branch on areasonable basis, and dealer claims for warranty compensation shall not bedenied except for good cause, such as performance of nonwarranty repairs,lack of material documentation, fraud, or misrepresentation. Claims fordealer compensation shall be paid within thirty days of dealer submission orwithin thirty days of the end of an incentive program or rejected in writingfor stated reasons. The manufacturer, factory branch, distributor, ordistributor branch shall reserve the right to reasonable periodic audits todetermine the validity of all such paid claims for dealer compensation. Anychargebacks for warranty parts or service compensation and service incentivesshall only be for the twelve-month period immediately following the date ofthe claim and, in the case of chargebacks for sales compensation only, forthe eighteen-month period immediately following the date of claim. However,such limitations shall not be effective in the case of intentionally false orfraudulent claims.
B. It shall be unlawful for any T&M vehicle manufacturer, factory branch,distributor, or distributor branch to:
1. Fail to perform any of its warranty obligations, including tires, withrespect to a T&M vehicle;
2. Fail to assume all responsibility for any liability resulting fromstructural or production defects;
3. Fail to include in written notices of factory recalls to T&M vehicleowners and dealers the expected date by which necessary parts and equipmentwill be available to dealers for the correction of defects;
4. Fail to compensate any of the T&M vehicle dealers licensed in theCommonwealth for repairs effected by the dealer of merchandise damaged inmanufacture or transit to the dealer where the carrier is designated by themanufacturer, factory branch, distributor, or distributor branch;
5. Fail to compensate its T&M vehicle dealers licensed in the Commonwealthfor warranty parts, work, and service pursuant to subsection A of thissection, or for legal costs and expenses incurred by such dealers inconnection with warranty obligations for which the manufacturer, factorybranch, distributor, or distributor branch is legally responsible or whichthe manufacturer, factory branch, distributor, or distributor branch imposesupon the dealer;
6. Misrepresent in any way to purchasers of T&M vehicles that warranties withrespect to the manufacture, performance, or design of the T&M vehicle aremade by the dealer, either as warrantor or co-warrantor;
7. Require the dealer to make warranties to customers in any manner relatedto the manufacture, performance, or design of the T&M vehicle; or
8. Shift or attempt to shift to the T&M vehicle dealer, directly orindirectly, any liabilities of the manufacturer, factory branch, distributoror distributor branch under the Virginia Motor Vehicle Warranty EnforcementAct (§ 59.1-207.9 et seq.), unless such liability results from the act oromission by the dealer.
C. Notwithstanding the terms of any franchise, it shall be unlawful for anyT&M vehicle manufacturer, factory branch, distributor, or distributor branchto fail to indemnify and hold harmless its T&M vehicle dealers against anylosses or damages arising out of complaints, claims, or suits relating to themanufacture, assembly, or design of T&M vehicles, parts, or accessories, orother functions by the manufacturer, factory branch, distributor, ordistributor branch beyond the control of the dealer, including, withoutlimitation, the selection by the manufacturer, factory branch, distributor,or distributor branch of parts or components for the T&M vehicle or anydamages to merchandise occurring in transit to the dealer where the carrieris designated by the manufacturer, factory branch, distributor, ordistributor branch. The dealer shall notify the manufacturer of pending suitsin which allegations are made which come within this subsection wheneverreasonably practicable to do so. Every T&M vehicle dealer franchise issuedto, amended, or renewed for T&M vehicle dealers in Virginia shall beconstrued to incorporate provisions consistent with the requirements of thissubsection.
D. On any new T&M vehicle, any uncorrected damage or any corrected damageexceeding three percent of the manufacturer's or distributor's suggestedretail price as defined in 15 U.S.C. §§ 1231-1233, as measured by retailrepair costs, must be disclosed to the dealer in writing prior to delivery.Factory mechanical repair and damage to glass, tires, and bumpers areexcluded from the three percent rule when properly replaced by identicalmanufacturer's or distributor's original equipment or parts. Whenever a newT&M vehicle is damaged in transit, when the carrier or means oftransportation is determined by the manufacturer or distributor, or whenevera T&M vehicle is otherwise damaged prior to delivery to the new T&M vehicledealer, the new T&M vehicle dealer shall:
1. Notify the manufacturer or distributor of the damage within three businessdays from the date of delivery of the new T&M vehicle to the new T&M vehicledealership or within the additional time specified in the franchise; and
2. Request from the manufacturer or distributor authorization to replace thecomponents, parts, and accessories damaged or otherwise correct the damage,unless the damage to the T&M vehicle exceeds the three percent rule, in whichcase the dealer may reject the vehicle within three business days.
E. If the manufacturer or distributor refuses or fails to authorizecorrection of such damage within ten days after receipt of notification, orif the dealer rejects the T&M vehicle because damage exceeds the threepercent rule, ownership of the new T&M vehicle shall revert to themanufacturer or distributor, and the new T&M vehicle dealer shall have noobligation, financial or otherwise, with respect to such T&M vehicle. Shouldeither the manufacturer, distributor, or the dealer elect to correct thedamage or any other damage exceeding the three percent rule, full disclosureshall be made by the dealer in writing to the buyer and an acknowledgment bythe buyer is required. If there is less than three percent damage, nodisclosure is required, provided the damage has been corrected. Predeliverymechanical work shall not require a disclosure. Failure to disclose anycorrected damage within the knowledge of the selling dealer to a new T&Mvehicle in excess of the three percent rule shall constitute grounds forrevocation of the buyer order, provided that, within thirty days of purchase,the T&M vehicle is returned to the dealer with an accompanying written noticeof the grounds for revocation. In case of revocation pursuant to thissection, the dealer shall accept the T&M vehicle and refund any payments madeto the dealer in connection with the transaction, less a reasonable allowancefor the consumer's use of the vehicle as defined in § 59.1-207.11.
F. If there is a dispute between the manufacturer, factory branch,distributor, or distributor branch and the dealer with respect to any matterreferred to in subsection A, B, or C of this section, either party maypetition the Commissioner in writing, within thirty days after either partyhas given written notice of the dispute to the other, for a hearing. Thedecision of the Commissioner shall be binding on the parties, subject torights of judicial review and appeal as provided in Chapter 40 (§ 2.2-4000 etseq.) of Title 2.2. However, nothing contained in this section shall give theCommissioner any authority as to the content or interpretation of anymanufacturer's or distributor's warranty.
A. Each T&M vehicle manufacturer, factory branch, distributor, or distributorbranch shall (i) specify in writing to each of its T&M vehicle dealerslicensed in the Commonwealth the dealer's obligations for preparation,delivery, and warranty service on its products and (ii) compensate the dealerfor warranty parts, service and diagnostic work required of the dealer by themanufacturer or distributor as follows:
1. Compensation of a dealer for warranty parts, service and diagnostic workshall not be less than the amounts charged by the dealer for themanufacturer's or distributor's original parts, service and diagnostic workto retail customers for nonwarranty service, parts and diagnostic workinstalled or performed in the dealer's service department unless the amountsare not reasonable;
2. For purposes of determining warranty parts and service compensation,menu-priced parts or services, group discounts, special event discounts, andspecial event promotions shall not be considered in determining amountscharged by the dealer to retail customers;
3. Increases in dealer warranty parts and service compensation and diagnosticwork compensation, pursuant to this section, shall be requested by the dealerin writing, shall be based on 100 consecutive repair orders or all repairorders over a ninety-day period, whichever occurs first and, in the case ofparts, shall be stated as a percentage of markup which shall be uniformlyapplied to all the manufacturer's or distributor's parts;
4. In the case of warranty parts compensation, the provisions of thissubsection shall be effective only for model year 1992 and succeeding modelyears;
5. If a manufacturer or distributor furnishes a part to a dealer at no costfor use by the dealer in performing work for which the manufacturer ordistributor is required to compensate the dealer under this section, themanufacturer or distributor shall compensate the dealer for the part in thesame manner as warranty parts compensation, less the wholesale costs, forsuch part as listed in the manufacturer's current price schedules. Amanufacturer or distributor may pay the dealer a reasonable handling feeinstead of the compensation otherwise required by this subsection for specialhigh-performance complete engine assemblies in limited production T&Mvehicles which constitute less than five percent of model productionfurnished to the dealer at no cost, if the manufacturer or distributorexcludes such special high-performance complete engine assemblies indetermining whether the amounts requested by the dealer for warrantycompensation are consistent with the amounts that the dealer charges itsother retail service customers for parts used by the dealer to performsimilar work; or
6. In the case of service work, manufacturer original parts or partsotherwise specified by the manufacturer or distributor, and parts provided bya dealer either pursuant to an adjustment program as defined in § 59.1-207.34or as otherwise requested by the manufacturer or distributor, the dealershall be compensated in the same manner as for warranty service or parts.
This section does not apply to compensation for parts such as components,systems, fixtures, appliances, furnishings, accessories, and features thatare designed, used, and maintained primarily for nonvehicular, residentialpurposes. Warranty audits of dealer records may be conducted by themanufacturer, factory branch, distributor, or distributor branch on areasonable basis, and dealer claims for warranty compensation shall not bedenied except for good cause, such as performance of nonwarranty repairs,lack of material documentation, fraud, or misrepresentation. Claims fordealer compensation shall be paid within thirty days of dealer submission orwithin thirty days of the end of an incentive program or rejected in writingfor stated reasons. The manufacturer, factory branch, distributor, ordistributor branch shall reserve the right to reasonable periodic audits todetermine the validity of all such paid claims for dealer compensation. Anychargebacks for warranty parts or service compensation and service incentivesshall only be for the twelve-month period immediately following the date ofthe claim and, in the case of chargebacks for sales compensation only, forthe eighteen-month period immediately following the date of claim. However,such limitations shall not be effective in the case of intentionally false orfraudulent claims.
B. It shall be unlawful for any T&M vehicle manufacturer, factory branch,distributor, or distributor branch to:
1. Fail to perform any of its warranty obligations, including tires, withrespect to a T&M vehicle;
2. Fail to assume all responsibility for any liability resulting fromstructural or production defects;
3. Fail to include in written notices of factory recalls to T&M vehicleowners and dealers the expected date by which necessary parts and equipmentwill be available to dealers for the correction of defects;
4. Fail to compensate any of the T&M vehicle dealers licensed in theCommonwealth for repairs effected by the dealer of merchandise damaged inmanufacture or transit to the dealer where the carrier is designated by themanufacturer, factory branch, distributor, or distributor branch;
5. Fail to compensate its T&M vehicle dealers licensed in the Commonwealthfor warranty parts, work, and service pursuant to subsection A of thissection, or for legal costs and expenses incurred by such dealers inconnection with warranty obligations for which the manufacturer, factorybranch, distributor, or distributor branch is legally responsible or whichthe manufacturer, factory branch, distributor, or distributor branch imposesupon the dealer;
6. Misrepresent in any way to purchasers of T&M vehicles that warranties withrespect to the manufacture, performance, or design of the T&M vehicle aremade by the dealer, either as warrantor or co-warrantor;
7. Require the dealer to make warranties to customers in any manner relatedto the manufacture, performance, or design of the T&M vehicle; or
8. Shift or attempt to shift to the T&M vehicle dealer, directly orindirectly, any liabilities of the manufacturer, factory branch, distributoror distributor branch under the Virginia Motor Vehicle Warranty EnforcementAct (§ 59.1-207.9 et seq.), unless such liability results from the act oromission by the dealer.
C. Notwithstanding the terms of any franchise, it shall be unlawful for anyT&M vehicle manufacturer, factory branch, distributor, or distributor branchto fail to indemnify and hold harmless its T&M vehicle dealers against anylosses or damages arising out of complaints, claims, or suits relating to themanufacture, assembly, or design of T&M vehicles, parts, or accessories, orother functions by the manufacturer, factory branch, distributor, ordistributor branch beyond the control of the dealer, including, withoutlimitation, the selection by the manufacturer, factory branch, distributor,or distributor branch of parts or components for the T&M vehicle or anydamages to merchandise occurring in transit to the dealer where the carrieris designated by the manufacturer, factory branch, distributor, ordistributor branch. The dealer shall notify the manufacturer of pending suitsin which allegations are made which come within this subsection wheneverreasonably practicable to do so. Every T&M vehicle dealer franchise issuedto, amended, or renewed for T&M vehicle dealers in Virginia shall beconstrued to incorporate provisions consistent with the requirements of thissubsection.
D. On any new T&M vehicle, any uncorrected damage or any corrected damageexceeding three percent of the manufacturer's or distributor's suggestedretail price as defined in 15 U.S.C. §§ 1231-1233, as measured by retailrepair costs, must be disclosed to the dealer in writing prior to delivery.Factory mechanical repair and damage to glass, tires, and bumpers areexcluded from the three percent rule when properly replaced by identicalmanufacturer's or distributor's original equipment or parts. Whenever a newT&M vehicle is damaged in transit, when the carrier or means oftransportation is determined by the manufacturer or distributor, or whenevera T&M vehicle is otherwise damaged prior to delivery to the new T&M vehicledealer, the new T&M vehicle dealer shall:
1. Notify the manufacturer or distributor of the damage within three businessdays from the date of delivery of the new T&M vehicle to the new T&M vehicledealership or within the additional time specified in the franchise; and
2. Request from the manufacturer or distributor authorization to replace thecomponents, parts, and accessories damaged or otherwise correct the damage,unless the damage to the T&M vehicle exceeds the three percent rule, in whichcase the dealer may reject the vehicle within three business days.
E. If the manufacturer or distributor refuses or fails to authorizecorrection of such damage within ten days after receipt of notification, orif the dealer rejects the T&M vehicle because damage exceeds the threepercent rule, ownership of the new T&M vehicle shall revert to themanufacturer or distributor, and the new T&M vehicle dealer shall have noobligation, financial or otherwise, with respect to such T&M vehicle. Shouldeither the manufacturer, distributor, or the dealer elect to correct thedamage or any other damage exceeding the three percent rule, full disclosureshall be made by the dealer in writing to the buyer and an acknowledgment bythe buyer is required. If there is less than three percent damage, nodisclosure is required, provided the damage has been corrected. Predeliverymechanical work shall not require a disclosure. Failure to disclose anycorrected damage within the knowledge of the selling dealer to a new T&Mvehicle in excess of the three percent rule shall constitute grounds forrevocation of the buyer order, provided that, within thirty days of purchase,the T&M vehicle is returned to the dealer with an accompanying written noticeof the grounds for revocation. In case of revocation pursuant to thissection, the dealer shall accept the T&M vehicle and refund any payments madeto the dealer in connection with the transaction, less a reasonable allowancefor the consumer's use of the vehicle as defined in § 59.1-207.11.
F. If there is a dispute between the manufacturer, factory branch,distributor, or distributor branch and the dealer with respect to any matterreferred to in subsection A, B, or C of this section, either party maypetition the Commissioner in writing, within thirty days after either partyhas given written notice of the dispute to the other, for a hearing. Thedecision of the Commissioner shall be binding on the parties, subject torights of judicial review and appeal as provided in Chapter 40 (§ 2.2-4000 etseq.) of Title 2.2. However, nothing contained in this section shall give theCommissioner any authority as to the content or interpretation of anymanufacturer's or distributor's warranty.
A. Each T&M vehicle manufacturer, factory branch, distributor, or distributorbranch shall (i) specify in writing to each of its T&M vehicle dealerslicensed in the Commonwealth the dealer's obligations for preparation,delivery, and warranty service on its products and (ii) compensate the dealerfor warranty parts, service and diagnostic work required of the dealer by themanufacturer or distributor as follows:
1. Compensation of a dealer for warranty parts, service and diagnostic workshall not be less than the amounts charged by the dealer for themanufacturer's or distributor's original parts, service and diagnostic workto retail customers for nonwarranty service, parts and diagnostic workinstalled or performed in the dealer's service department unless the amountsare not reasonable;
2. For purposes of determining warranty parts and service compensation,menu-priced parts or services, group discounts, special event discounts, andspecial event promotions shall not be considered in determining amountscharged by the dealer to retail customers;
3. Increases in dealer warranty parts and service compensation and diagnosticwork compensation, pursuant to this section, shall be requested by the dealerin writing, shall be based on 100 consecutive repair orders or all repairorders over a ninety-day period, whichever occurs first and, in the case ofparts, shall be stated as a percentage of markup which shall be uniformlyapplied to all the manufacturer's or distributor's parts;
4. In the case of warranty parts compensation, the provisions of thissubsection shall be effective only for model year 1992 and succeeding modelyears;
5. If a manufacturer or distributor furnishes a part to a dealer at no costfor use by the dealer in performing work for which the manufacturer ordistributor is required to compensate the dealer under this section, themanufacturer or distributor shall compensate the dealer for the part in thesame manner as warranty parts compensation, less the wholesale costs, forsuch part as listed in the manufacturer's current price schedules. Amanufacturer or distributor may pay the dealer a reasonable handling feeinstead of the compensation otherwise required by this subsection for specialhigh-performance complete engine assemblies in limited production T&Mvehicles which constitute less than five percent of model productionfurnished to the dealer at no cost, if the manufacturer or distributorexcludes such special high-performance complete engine assemblies indetermining whether the amounts requested by the dealer for warrantycompensation are consistent with the amounts that the dealer charges itsother retail service customers for parts used by the dealer to performsimilar work; or
6. In the case of service work, manufacturer original parts or partsotherwise specified by the manufacturer or distributor, and parts provided bya dealer either pursuant to an adjustment program as defined in § 59.1-207.34or as otherwise requested by the manufacturer or distributor, the dealershall be compensated in the same manner as for warranty service or parts.
This section does not apply to compensation for parts such as components,systems, fixtures, appliances, furnishings, accessories, and features thatare designed, used, and maintained primarily for nonvehicular, residentialpurposes. Warranty audits of dealer records may be conducted by themanufacturer, factory branch, distributor, or distributor branch on areasonable basis, and dealer claims for warranty compensation shall not bedenied except for good cause, such as performance of nonwarranty repairs,lack of material documentation, fraud, or misrepresentation. Claims fordealer compensation shall be paid within thirty days of dealer submission orwithin thirty days of the end of an incentive program or rejected in writingfor stated reasons. The manufacturer, factory branch, distributor, ordistributor branch shall reserve the right to reasonable periodic audits todetermine the validity of all such paid claims for dealer compensation. Anychargebacks for warranty parts or service compensation and service incentivesshall only be for the twelve-month period immediately following the date ofthe claim and, in the case of chargebacks for sales compensation only, forthe eighteen-month period immediately following the date of claim. However,such limitations shall not be effective in the case of intentionally false orfraudulent claims.
B. It shall be unlawful for any T&M vehicle manufacturer, factory branch,distributor, or distributor branch to:
1. Fail to perform any of its warranty obligations, including tires, withrespect to a T&M vehicle;
2. Fail to assume all responsibility for any liability resulting fromstructural or production defects;
3. Fail to include in written notices of factory recalls to T&M vehicleowners and dealers the expected date by which necessary parts and equipmentwill be available to dealers for the correction of defects;
4. Fail to compensate any of the T&M vehicle dealers licensed in theCommonwealth for repairs effected by the dealer of merchandise damaged inmanufacture or transit to the dealer where the carrier is designated by themanufacturer, factory branch, distributor, or distributor branch;
5. Fail to compensate its T&M vehicle dealers licensed in the Commonwealthfor warranty parts, work, and service pursuant to subsection A of thissection, or for legal costs and expenses incurred by such dealers inconnection with warranty obligations for which the manufacturer, factorybranch, distributor, or distributor branch is legally responsible or whichthe manufacturer, factory branch, distributor, or distributor branch imposesupon the dealer;
6. Misrepresent in any way to purchasers of T&M vehicles that warranties withrespect to the manufacture, performance, or design of the T&M vehicle aremade by the dealer, either as warrantor or co-warrantor;
7. Require the dealer to make warranties to customers in any manner relatedto the manufacture, performance, or design of the T&M vehicle; or
8. Shift or attempt to shift to the T&M vehicle dealer, directly orindirectly, any liabilities of the manufacturer, factory branch, distributoror distributor branch under the Virginia Motor Vehicle Warranty EnforcementAct (§ 59.1-207.9 et seq.), unless such liability results from the act oromission by the dealer.
C. Notwithstanding the terms of any franchise, it shall be unlawful for anyT&M vehicle manufacturer, factory branch, distributor, or distributor branchto fail to indemnify and hold harmless its T&M vehicle dealers against anylosses or damages arising out of complaints, claims, or suits relating to themanufacture, assembly, or design of T&M vehicles, parts, or accessories, orother functions by the manufacturer, factory branch, distributor, ordistributor branch beyond the control of the dealer, including, withoutlimitation, the selection by the manufacturer, factory branch, distributor,or distributor branch of parts or components for the T&M vehicle or anydamages to merchandise occurring in transit to the dealer where the carrieris designated by the manufacturer, factory branch, distributor, ordistributor branch. The dealer shall notify the manufacturer of pending suitsin which allegations are made which come within this subsection wheneverreasonably practicable to do so. Every T&M vehicle dealer franchise issuedto, amended, or renewed for T&M vehicle dealers in Virginia shall beconstrued to incorporate provisions consistent with the requirements of thissubsection.
D. On any new T&M vehicle, any uncorrected damage or any corrected damageexceeding three percent of the manufacturer's or distributor's suggestedretail price as defined in 15 U.S.C. §§ 1231-1233, as measured by retailrepair costs, must be disclosed to the dealer in writing prior to delivery.Factory mechanical repair and damage to glass, tires, and bumpers areexcluded from the three percent rule when properly replaced by identicalmanufacturer's or distributor's original equipment or parts. Whenever a newT&M vehicle is damaged in transit, when the carrier or means oftransportation is determined by the manufacturer or distributor, or whenevera T&M vehicle is otherwise damaged prior to delivery to the new T&M vehicledealer, the new T&M vehicle dealer shall:
1. Notify the manufacturer or distributor of the damage within three businessdays from the date of delivery of the new T&M vehicle to the new T&M vehicledealership or within the additional time specified in the franchise; and
2. Request from the manufacturer or distributor authorization to replace thecomponents, parts, and accessories damaged or otherwise correct the damage,unless the damage to the T&M vehicle exceeds the three percent rule, in whichcase the dealer may reject the vehicle within three business days.
E. If the manufacturer or distributor refuses or fails to authorizecorrection of such damage within ten days after receipt of notification, orif the dealer rejects the T&M vehicle because damage exceeds the threepercent rule, ownership of the new T&M vehicle shall revert to themanufacturer or distributor, and the new T&M vehicle dealer shall have noobligation, financial or otherwise, with respect to such T&M vehicle. Shouldeither the manufacturer, distributor, or the dealer elect to correct thedamage or any other damage exceeding the three percent rule, full disclosureshall be made by the dealer in writing to the buyer and an acknowledgment bythe buyer is required. If there is less than three percent damage, nodisclosure is required, provided the damage has been corrected. Predeliverymechanical work shall not require a disclosure. Failure to disclose anycorrected damage within the knowledge of the selling dealer to a new T&Mvehicle in excess of the three percent rule shall constitute grounds forrevocation of the buyer order, provided that, within thirty days of purchase,the T&M vehicle is returned to the dealer with an accompanying written noticeof the grounds for revocation. In case of revocation pursuant to thissection, the dealer shall accept the T&M vehicle and refund any payments madeto the dealer in connection with the transaction, less a reasonable allowancefor the consumer's use of the vehicle as defined in § 59.1-207.11.
F. If there is a dispute between the manufacturer, factory branch,distributor, or distributor branch and the dealer with respect to any matterreferred to in subsection A, B, or C of this section, either party maypetition the Commissioner in writing, within thirty days after either partyhas given written notice of the dispute to the other, for a hearing. Thedecision of the Commissioner shall be binding on the parties, subject torights of judicial review and appeal as provided in Chapter 40 (§ 2.2-4000 etseq.) of Title 2.2. However, nothing contained in this section shall give theCommissioner any authority as to the content or interpretation of anymanufacturer's or distributor's warranty.
