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15 USC CHAPTER 27 - AUTOMOBILE DEALER SUITS AGAINST

MANUFACTURERS 01/06/03

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TITLE 15 - COMMERCE AND TRADE

CHAPTER 27 - AUTOMOBILE DEALER SUITS AGAINST MANUFACTURERS

.

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CHAPTER 27 - AUTOMOBILE DEALER SUITS AGAINST MANUFACTURERS

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Sec.

1221. Definitions.

1222. Authorization of suits against manufacturers; amount of

recovery; defenses.

1223. Limitations.

1224. Antitrust laws as affected.

1225. State laws as affected.

1226. Motor vehicle franchise contract dispute resolution process.

(a) Election of arbitration.

(b) Application.

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15 USC Sec. 1221 01/06/03

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TITLE 15 - COMMERCE AND TRADE

CHAPTER 27 - AUTOMOBILE DEALER SUITS AGAINST MANUFACTURERS

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Sec. 1221. Definitions

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As used in this chapter -

(a) The term ''automobile manufacturer'' shall mean any person,

partnership, corporation, association, or other form of business

enterprise engaged in the manufacturing or assembling of passenger

cars, trucks, or station wagons, including any person, partnership,

or corporation which acts for and is under the control of such

manufacturer or assembler in connection with the distribution of

said automotive vehicles.

(b) The term ''franchise'' shall mean the written agreement or

contract between any automobile manufacturer engaged in commerce

and any automobile dealer which purports to fix the legal rights

and liabilities of the parties to such agreement or contract.

(c) The term ''automobile dealer'' shall mean any person,

partnership, corporation, association, or other form of business

enterprise resident in the United States or in any Territory

thereof or in the District of Columbia operating under the terms of

a franchise and engaged in the sale or distribution of passenger

cars, trucks, or station wagons.

(d) The term ''commerce'' shall mean commerce among the several

States of the United States or with foreign nations, or in any

Territory of the United States or in the District of Columbia, or

among the Territories or between any Territory and any State or

foreign nation, or between the District of Columbia and any State

or Territory or foreign nation.

(e) The term ''good faith'' shall mean the duty of each party to

any franchise, and all officers, employees, or agents thereof to

act in a fair and equitable manner toward each other so as to

guarantee the one party freedom from coercion, intimidation, or

threats of coercion or intimidation from the other party: Provided,

That recommendation, endorsement, exposition, persuasion, urging or

argument shall not be deemed to constitute a lack of good faith.

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(Aug. 8, 1956, ch. 1038, Sec. 1, 70 Stat. 1125.)

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15 USC Sec. 1222 01/06/03

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TITLE 15 - COMMERCE AND TRADE

CHAPTER 27 - AUTOMOBILE DEALER SUITS AGAINST MANUFACTURERS

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Sec. 1222. Authorization of suits against manufacturers; amount of

recovery; defenses

-STATUTE-

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.

-SOURCE-

(Aug. 8, 1956, ch. 1038, Sec. 2, 70 Stat. 1125.)

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15 USC Sec. 1223 01/06/03

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TITLE 15 - COMMERCE AND TRADE

CHAPTER 27 - AUTOMOBILE DEALER SUITS AGAINST MANUFACTURERS

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Sec. 1223. Limitations

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Any action brought pursuant to this chapter shall be forever

barred unless commenced within three years after the cause of

action shall have accrued.

-SOURCE-

(Aug. 8, 1956, ch. 1038, Sec. 3, 70 Stat. 1125.)

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15 USC Sec. 1224 01/06/03

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TITLE 15 - COMMERCE AND TRADE

CHAPTER 27 - AUTOMOBILE DEALER SUITS AGAINST MANUFACTURERS

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Sec. 1224. Antitrust laws as affected

-STATUTE-

No provision of this chapter shall repeal, modify, or supersede,

directly or indirectly, any provision of the antitrust laws of the

United States.

-SOURCE-

(Aug. 8, 1956, ch. 1038, Sec. 4, 70 Stat. 1125.)

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REFERENCES IN TEXT

The antitrust laws, referred to in the catchline and text, are

classified generally to chapter 1 (Sec. 1 et seq.) of this title.

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15 USC Sec. 1225 01/06/03

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TITLE 15 - COMMERCE AND TRADE

CHAPTER 27 - AUTOMOBILE DEALER SUITS AGAINST MANUFACTURERS

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Sec. 1225. State laws as affected

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This chapter shall not invalidate any provision of the laws of

any State except insofar as there is a direct conflict between an

express provision of this chapter and an express provision of State

law which can not (FOOTNOTE 1) be reconciled.

(FOOTNOTE 1) So in original. Should be ''cannot''.

-SOURCE-

(Aug. 8, 1956, ch. 1038, Sec. 5, 70 Stat. 1126.)

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15 USC Sec. 1226 01/06/03

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TITLE 15 - COMMERCE AND TRADE

CHAPTER 27 - AUTOMOBILE DEALER SUITS AGAINST MANUFACTURERS

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Sec. 1226. Motor vehicle franchise contract dispute resolution

process

-STATUTE-

(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; 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) of this section shall apply to contracts entered

into, amended, altered, modified, renewed, or extended after

November 2, 2002.

-SOURCE-

(Pub. L. 107-273, div. C, title I, Sec. 11028, Nov. 2, 2002, 116

Stat. 1835.)

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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.

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