West Virginia Code 17A-6A-12a – Restriction on motor vehicle dealer’s use of dealership property
(1) A manufacturer shall not require that a new motor vehicle dealer, a proposed new motor vehicle dealer, or any owner of an interest in a dealership facility enter into or agree to a property use agreement as a condition to any of the following:
Terms Used In West Virginia Code 17A-6A-12a
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Manufacturer: means every person engaged in the business of constructing or assembling vehicles of a type required to be registered hereunder at a place of business in this state which is actually occupied either continuously or at regular periods by the manufacturer where his or her books and records are kept and a large share of his or her business is transacted. See West Virginia Code 17A-1-1
- Motor vehicle: means every vehicle which is self-propelled and every vehicle which is propelled by electric power obtained from overhead trolley wires, but not operated upon rails. See West Virginia Code 17A-1-1
- Owner: means a person who holds the legal title to a vehicle, or in the event a vehicle is the subject of an agreement for the conditional sale or lease thereof with the right of purchase upon performance of the conditions stated in the agreement and with an immediate right of possession vested in the conditional vendee or lessee, or in the event a mortgagor of a vehicle is entitled to possession, then the conditional vendee or lessee or mortgagor shall be considered the owner for the purpose of this chapter. See West Virginia Code 17A-1-1
- Person: means every natural person, firm, copartnership, association, or corporation. See West Virginia Code 17A-1-1
(a) Awarding a dealer agreement to a prospective new motor vehicle dealer.
(b) Adding a line make or dealer agreement to an existing new motor vehicle dealer.
(c) Renewing a dealer agreement with an existing new motor vehicle dealer.
(d) Approving a relocation of a new motor vehicle dealer's place of business.
(e) Approving a sale or transfer of the ownership of a dealership or a transfer of a dealer agreement to another person.
(2) Subsection (1) of this section does not apply to a property use agreement if any of the following are offered and accepted for that agreement:
(a) Monetary consideration.
(b) Separate and valuable consideration that can be calculated to a sum certain.
(3) If a manufacturer and new motor vehicle dealer are in parties to a property use agreement, the dealer agreement between the manufacturer and new motor vehicle dealer is terminated by a manufacturer or by a successor manufacturer or by operation of law and the reason for the termination is not a reason described in paragraphs (1) through (5), inclusive, subdivision (c), section seven of this article, the property use agreement terminates and ceases to be effective at the time the dealer agreement is terminated.
(4) If any provision contained in a property use agreement entered into on or after the effective date of the amendatory act that added this subsection is inconsistent with this section, the provision is voidable at the election of the affected new motor vehicle dealer, proposed new motor vehicle dealer, or owner of an interest in the dealership facility.
(5) As used in this section, "property use agreement" means any of the following:
(a) An agreement that requires that a new motor vehicle dealer establish or maintain exclusive dealership facilities.
(b) An agreement that restricts the ability of a new motor vehicle dealer, or the ability of the dealer's lessor if the dealer is leasing the dealership facility, to transfer, sell, lease, or change the use of the place of business of the dealership, whether by sublease, lease, collateral pledge of lease, right of first refusal to purchase or lease, option to purchase, option to lease, or other similar agreement, regardless of who the parties to that agreement are.
(c) Any similar agreement between a manufacturer and a new motor vehicle dealer and commonly known as a site control agreement or exclusive use agreement.