15 U.S.C. § 1226 — Motor vehicle franchise contract dispute resolution process
submitted 24 years ago by Pub. L. 107-273 to r/title-15-COMMERCE-AND-TRADE · 204 words · no verdicts yet
This section addresses motor vehicle franchise contract dispute resolution process. It sets the duties, permissions, procedures, limits, and exceptions stated in the section.
(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 Even if another law says otherwise, 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 Even if another law says otherwise, whenever arbitration is elected to settle a dispute under a motor vehicle franchise contract, the arbitrator must provide the parties to such contract with a written explanation of the factual and legal basis for the award.
(b) Application Subsection
(a) must apply to contracts entered into, amended, altered, modified, renewed, or extended after November 2, 2002.
For purposes of this subsection—
the term “motor vehicle” has the meaning given such term in section 30102(6) of title 49; 1 and
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.
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.
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.
Subsection (a) shall apply to contracts entered into, amended, altered, modified, renewed, or extended after November 2, 2002.
Source credit: (Pub. L. 107–273, div. C, title I, § 11028, Nov. 2, 2002, 116 Stat. 1835.)
- 2002Enacted · Pub. L. 107-273 · 116 Stat. 1835
A history note hasn’t been published yet. The record shows enactment by Pub. L. 107-273 on 2002-11-02.
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