Can a car manufacturer force a dealer to accept vehicles they didn't order?

What the Law Says

The primary federal statute once intended to protect auto dealers — the Automobile Dealers' Day in Court Act — was repealed in 1994 and no longer provides legal recourse. Today, there is no active federal law that prohibits manufacturers from requiring dealers to accept unordered vehicles.

The Automobile Dealers' Day in Court Act (15 U.S.C. §§ 1981–1991) was enacted in 1956 to give dealers a federal cause of action against 'unfair or inequitable' treatment by manufacturers. However, it was fully repealed by Public Law 103–272 on July 5, 1994.

The citation '15 U.S.C. § 1221' refers to a statutory cross-reference that now points to the repealed Act — it is not an active provision. As confirmed by the U.S. Code itself, the sections '1981 to 1991' were 'repealed' and 'no longer represent positive law.'

Because the Act is repealed, there is no current federal statutory prohibition against manufacturers allocating or forcing delivery of unordered vehicles. Any such restrictions must be found in individual dealer agreements or, more commonly, in state automobile franchise laws — which vary widely across the U.S.

Statutory Text

Pub. L. 103–272, § 7(b), July 5, 1994, 108 Stat. 1379

— Automobile Dealers' Day in Court Act — Repeal

Sources