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Motor Vehicle Manufacturer And Distributor Stop-sale

Concerning a duty to reimburse motor vehicle dealers when issuing a stop-sale directive due to a safety defect affecting a used motor vehicle.
2017 Regular Session
Transportation & Motor Vehicles
Bill Summary

The bill requires the manufacturer or distributor to reimburse a motor vehicle dealer for any stop-sale directive from 90 days after the directive is issued until the vehicle is sold or a repair solution is provided. The reimbursement rate is one percent of the wholesale value per month. The duty to reimburse occurs when:

  • The motor vehicle is a used motor vehicle;
  • The motor vehicle dealer holds an active sales, service, and parts agreement with the manufacturer or distributor for the line-make of the used motor vehicle;
  • The motor vehicle is in the motor vehicle dealer's inventory when the stop-sale directive is issued; and
  • The manufacturer or distributor does not provide a remedy procedure or make a part available to repair the used motor vehicle for more than 90 days after the stop-sale directive is issued.
    (Note: This summary applies to this bill as introduced.)




Bill Text


Sponsor Type Legislators
Prime Sponsor

Sen. R. Scott



The effective date for bills enacted without a safety clause is August 7, 2024, if the General Assembly adjourns sine die on May 8, 2024, unless otherwise specified. Details