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Co-Authored-By: Claude Opus 4.8 <noreply@anthropic.com>
2026-07-06 10:51:44 -04:00

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LegalText 15 U.S.C. § 1226 Motor vehicle franchise contract dispute resolution process us united_states_code code_section 15 COMMERCE AND TRADE 27 AUTOMOBILE DEALER SUITS AGAINST MANUFACTURERS 1226 15 U.S.C. § 1226 current 119-100 2026-06-26 official https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc15@119-100.zip /us/usc/t15/s1226 data/legal/raw/us/code/title-15/usc15.xml 9d86d06c044bdee8caccadaf1aaeebcccea8648c63c55a20cdab66e573600691 6982338d990ef19d6b52bff6825089bdd6d0ee1233d9382673faf533decd5059 3e60aa0488705a050969e2a1760313b626f000459c3b6d9464e3fb41fa896581 2026-07-04 official
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15 U.S.C. § 1226 - Motor vehicle franchise contract dispute resolution process

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; 11 See References in Text note below. 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 manufacturers 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 November 2, 2002.

(Pub. L. 107273, div. C, title I, § 11028, Nov. 2, 2002, 116 Stat. 1835.)

Notes

Editorial Notes

References in TextSection 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. 11494, div. B, title XXIV, Dec. 4, 2015, 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.