15 U.S.C. § 1226
Section 1226 · Motor vehicle franchise contract dispute resolution process
This is the Sherman Antitrust Act
Amended 1 time on record
Applied in 19 court decisions — leading case Epic Systems Corp. v. Lewis (2018)
Most recently applied in Adam U. Steines v. Westgate Palace, L.L.C. (September 2024)
How often courts cite this section
Court decisions citing this, by year.Markers show enactment, consequential amendments, and circuit splits over this section — watch for a citation surge after a change or a disagreement. The dip in the last several years is a data-coverage gap, not a real trend — our corpus holds fewer opinions from the most recent years, so recent citations are undercounted.
(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.
Subsection (a) of this section shall apply to contracts entered into, amended, altered, modified, renewed, or extended after November 2, 2002.
Editorial notes U.S. Code · Office of the Law Revision Counsel
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.