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U.S. Code as of:
01/19/04
Section 1226. Motor vehicle franchise contract dispute resolution process
(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.
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