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Title 15 — Commerce and Trade

Chapter 27 — Automobile Dealer Suits Against Manufacturers

§ 1226. Motor vehicle franchise contract dispute resolution process

Statutory text

(a)

Election of arbitration

(1)

Definitions

For purposes of this subsection—

(A)

the term “motor vehicle” has the meaning given such term in section 30102(6) of title 49; 1 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)

Consent required

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)

Explanation required

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)

Application

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

Footnotes

  1. 1 See References in Text note below.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

  1. An Act divesting intoxicating liquors of their interstate character in certain cases

    Pub. L. 107–273 div. C title I § 11028 · 116 Stat. 1758

    Enacted · 15 U.S.C. § 1226

    (Pub. L. 107–273, div. C, title I, § 11028, Nov. 2, 2002, 116 Stat. 1835.)

    Source evidence

    Code source credit
    (Pub. L. 107–273, div. C, title I, § 11028, Nov. 2, 2002, 116 Stat. 1835.)

    Enacted provision · exact public law section
    SEC. 11028. MOTOR VEHICLE FRANCHISE CONTRACT DISPUTE RESOLUTION PROCESS. (a) Election of Arbitration.— (1) Definitions.— For purposes of this subsection— (A) the term “motor vehicle” has the meaning given such term in section 30102(6) of title 49 of the United States Code; 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) Consent required.— 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) Explanation required.— 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) Application.— Subsection (a) shall apply to contracts entered into, amended, altered, modified, renewed, or extended after the date of the enactment of this Act.

1 of 1 references resolved to an enrolled provision

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, , 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.

Credits

(Pub. L. 107–273, div. C, title I, § 11028, , 116 Stat. 1835.)

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