Full Text of SB1344 95th General Assembly
SB1344eng 95TH GENERAL ASSEMBLY
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| AN ACT concerning business.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Motor Vehicle Franchise Act is amended by | 5 |
| changing Section 2 as follows:
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| (815 ILCS 710/2) (from Ch. 121 1/2, par. 752)
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| Sec. 2. Definitions. As used in this Act, the following | 8 |
| words shall,
unless the context otherwise requires, have the | 9 |
| following meanings:
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| (a) "Motor vehicle", any motor driven vehicle required to | 11 |
| be registered
under "The Illinois Vehicle Code".
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| (b) "Manufacturer", any person engaged in the business of | 13 |
| manufacturing
or assembling new and unused motor vehicles.
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| (c) "Factory branch", a branch office maintained by a | 15 |
| manufacturer which
manufactures or assembles motor vehicles | 16 |
| for sale to distributors or motor
vehicle dealers or which is | 17 |
| maintained for directing and supervising the
representatives | 18 |
| of the manufacturer.
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| (d) "Distributor branch", a branch office maintained by a | 20 |
| distributor
or wholesaler who or which sells or distributes new | 21 |
| or used motor vehicles
to motor vehicle dealers.
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| (e) "Factory representative", a representative employed by | 23 |
| a manufacturer
or employed by a factory branch for the purpose |
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| of making or promoting the
sale of motor vehicles or for | 2 |
| contracting with, supervising, servicing or
instructing motor | 3 |
| vehicle dealers or prospective motor vehicle dealers.
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| (f) "Distributor representative", a representative | 5 |
| employed by a
distributor branch, distributor or wholesaler.
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| (g) "Distributor" or "wholesaler", any person who sells or | 7 |
| distributes
new or used motor vehicles to motor vehicle dealers | 8 |
| or who maintains
distributor representatives within the State.
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| (h) "Motor vehicle dealer", any person who, in the ordinary | 10 |
| course of
business, is engaged in the business of selling new | 11 |
| or used motor vehicles
to consumers or other end users.
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| (i) "Franchise", an oral or written arrangement for a | 13 |
| definite or indefinite
period in which a manufacturer, | 14 |
| distributor or wholesaler grants to a motor
vehicle dealer a | 15 |
| license to use a trade name, service mark, or related
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| characteristic, and in which there is a community of interest | 17 |
| in the
marketing of motor vehicles or services related thereto | 18 |
| at wholesale,
retail, leasing or otherwise.
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| (j) "Franchiser", a manufacturer, distributor or | 20 |
| wholesaler who grants
a franchise to a motor vehicle dealer.
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| (k) "Franchisee", a motor vehicle dealer to whom a | 22 |
| franchise is offered
or granted.
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| (l) "Sale", shall include the issuance, transfer, | 24 |
| agreement for transfer,
exchange, pledge, hypothecation, | 25 |
| mortgage in any form, whether by transfer
in trust or | 26 |
| otherwise, of any motor vehicle or interest therein or of any
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| franchise related thereto; and any option, subscription or | 2 |
| other contract
or solicitation, looking to a sale, or offer or | 3 |
| attempt to sell in any form,
whether oral or written. A gift or | 4 |
| delivery of any motor vehicle or franchise
with respect thereto | 5 |
| with or as a bonus on account of the sale of anything
shall be | 6 |
| deemed a sale of such motor vehicle or franchise.
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| (m) "Fraud", shall include, in addition to its normal legal | 8 |
| connotation,
the following: a misrepresentation in any manner, | 9 |
| whether intentionally
false or due to reckless disregard for | 10 |
| truth or falsity, of a material fact;
a promise or | 11 |
| representation
not made honestly and in good faith; and an | 12 |
| intentional failure to disclose
a material fact.
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| (n) "Person", a natural person, corporation, partnership, | 14 |
| trust or other
entity, and in case of an entity, it shall | 15 |
| include any other entity in
which it has a majority interest or | 16 |
| which it effectively controls as well
as the individual | 17 |
| officers, directors and other persons in active control
of the | 18 |
| activities of each such entity.
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| (o) "New motor vehicle", a motor vehicle which has not been | 20 |
| previously
sold to any person except a distributor or | 21 |
| wholesaler or motor vehicle dealer
for resale.
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| (p) "Market Area", the franchisee's area of primary | 23 |
| responsibility as
defined in its franchise.
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| (q) "Relevant Market Area", the area within a radius of 10 | 25 |
| miles from
the principal location of a franchise or dealership | 26 |
| if said principal location
is in a county having a population |
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| of more than 300,000 persons; if the
principal location of a | 2 |
| franchise or dealership is in a county having a
population of | 3 |
| less than 300,000 persons, then "relevant market area" shall
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| mean the area within a radius of 15 miles from the principal | 5 |
| location of
said franchise or dealership ; or the area of | 6 |
| responsibility as defined in
the franchise agreement, | 7 |
| whichever is greater .
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| (r) "Late model vehicle" means a vehicle of the current | 9 |
| model year and
one, 2, or 3 preceding model years for which the | 10 |
| motor vehicle dealer holds
an existing franchise from the | 11 |
| manufacturer for that same line make.
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| (s) "Factory repurchase vehicle" means a motor vehicle of | 13 |
| the current
model year or a late model vehicle reacquired by | 14 |
| the manufacturer under an
existing agreement or otherwise from | 15 |
| a fleet, lease or daily rental company
or under any State or | 16 |
| federal law or program relating to allegedly
defective new | 17 |
| motor vehicles, and offered for sale and resold by the
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| manufacturer directly or at a factory authorized or sponsored | 19 |
| auction.
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| (t) "Board" means the Motor Vehicle Review Board
created | 21 |
| under this Act.
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| (u) "Secretary of State" means the Secretary of State of | 23 |
| Illinois.
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| (v) "Good cause" means facts establishing commercial | 25 |
| reasonableness in
lawful or privileged competition and | 26 |
| business practices as defined at common
law.
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| (Source: P.A. 89-145, eff. 7-14-95.)
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| Section 99. Effective date. This Act takes effect upon | 3 |
| becoming law.
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