Illinois General Assembly - Full Text of HB2435
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Full Text of HB2435  102nd General Assembly

HB2435 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB2435

 

Introduced 2/19/2021, by Rep. Dagmara Avelar

 

SYNOPSIS AS INTRODUCED:
 
815 ILCS 710/4  from Ch. 121 1/2, par. 754

    Amends the Motor Vehicle Franchise Act. Provides that a manufacturer may not require a motor vehicle dealer to make available any secondary product or prohibit a motor vehicle dealer from offering a secondary product. Defines "secondary product" to mean all products that are not new motor vehicles or original equipment manufacturer parts.


LRB102 13556 JLS 18904 b

 

 

A BILL FOR

 

HB2435LRB102 13556 JLS 18904 b

1    AN ACT concerning business.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Motor Vehicle Franchise Act is amended by
5changing Section 4 as follows:
 
6    (815 ILCS 710/4)  (from Ch. 121 1/2, par. 754)
7    Sec. 4. Unfair competition and practices.
8    (a) The unfair methods of competition and unfair and
9deceptive acts or practices listed in this Section are hereby
10declared to be unlawful. In construing the provisions of this
11Section, the courts may be guided by the interpretations of
12the Federal Trade Commission Act (15 U.S.C. 45 et seq.), as
13from time to time amended.
14    (b) It shall be deemed a violation for any manufacturer,
15factory branch, factory representative, distributor or
16wholesaler, distributor branch, distributor representative or
17motor vehicle dealer to engage in any action with respect to a
18franchise which is arbitrary, in bad faith or unconscionable
19and which causes damage to any of the parties or to the public.
20    (c) It shall be deemed a violation for a manufacturer, a
21distributor, a wholesaler, a distributor branch or division, a
22factory branch or division, or a wholesale branch or division,
23or officer, agent or other representative thereof, to coerce,

 

 

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1or attempt to coerce, any motor vehicle dealer:
2        (1) to accept, buy or order any motor vehicle or
3    vehicles, appliances, equipment, parts or accessories
4    therefor, or any other commodity or commodities or service
5    or services which such motor vehicle dealer has not
6    voluntarily ordered or requested except items required by
7    applicable local, state or federal law; or to require a
8    motor vehicle dealer to accept, buy, order or purchase
9    such items in order to obtain any motor vehicle or
10    vehicles or any other commodity or commodities which have
11    been ordered or requested by such motor vehicle dealer;
12        (2) to order or accept delivery of any motor vehicle
13    with special features, appliances, accessories or
14    equipment not included in the list price of the motor
15    vehicles as publicly advertised by the manufacturer
16    thereof, except items required by applicable law; or
17        (3) to order for anyone any parts, accessories,
18    equipment, machinery, tools, appliances or any commodity
19    whatsoever, except items required by applicable law.
20    (c-5) A manufacturer, a distributor, a wholesaler, a
21distributor branch or division, a factory branch or division,
22or a wholesale branch or division, or officer, agent, or other
23representative thereof may not:
24        (1) require a motor vehicle dealer to offer a
25    secondary product;
26        (2) require a motor vehicle dealer to provide a

 

 

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1    customer with a disclosure not otherwise required by law;
2    or
3        (3) prohibit a motor vehicle dealer from offering a
4    secondary product, including, but not limited to:
5            (A) service contracts;
6            (B) maintenance agreements;
7            (C) extended warranties;
8            (D) protection product guarantees;
9            (E) guaranteed asset protection waivers;
10            (F) insurance;
11            (G) replacement parts;
12            (H) vehicle accessories;
13            (I) oil; or
14            (J) supplies.
15    It is not a violation of this subsection to offer an
16incentive program to motor vehicle dealers to encourage them
17to sell or offer to sell a secondary product approved,
18endorsed, sponsored, or offered by the manufacturer,
19distributor, wholesaler, distributor branch or division,
20factory branch or division, wholesale branch or division, or
21officer, agent, or other representative thereof, provided the
22program does not provide vehicle sales or service incentives.
23    It is not a violation of this subsection to prohibit a
24motor vehicle dealer from using secondary products for any
25repair work paid for under the terms of a warranty, recall,
26service contract, extended warranty, maintenance plan, or

 

 

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1certified pre-owned vehicle program established or offered by
2the manufacturer, distributor, wholesaler, distributor branch
3or division, factory branch or division, or wholesale branch
4or division, or officer, agent, or other representative
5thereof.
6    As used in this subsection, "secondary product" means all
7products that are not new motor vehicles or original equipment
8manufacturer parts.
9    (d) It shall be deemed a violation for a manufacturer, a
10distributor, a wholesaler, a distributor branch or division,
11or officer, agent or other representative thereof:
12        (1) to adopt, change, establish or implement a plan or
13    system for the allocation and distribution of new motor
14    vehicles to motor vehicle dealers which is arbitrary or
15    capricious or to modify an existing plan so as to cause the
16    same to be arbitrary or capricious;
17        (2) to fail or refuse to advise or disclose to any
18    motor vehicle dealer having a franchise or selling
19    agreement, upon written request therefor, the basis upon
20    which new motor vehicles of the same line make are
21    allocated or distributed to motor vehicle dealers in the
22    State and the basis upon which the current allocation or
23    distribution is being made or will be made to such motor
24    vehicle dealer;
25        (3) to refuse to deliver in reasonable quantities and
26    within a reasonable time after receipt of dealer's order,

 

 

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1    to any motor vehicle dealer having a franchise or selling
2    agreement for the retail sale of new motor vehicles sold
3    or distributed by such manufacturer, distributor,
4    wholesaler, distributor branch or division, factory branch
5    or division or wholesale branch or division, any such
6    motor vehicles as are covered by such franchise or selling
7    agreement specifically publicly advertised in the State by
8    such manufacturer, distributor, wholesaler, distributor
9    branch or division, factory branch or division, or
10    wholesale branch or division to be available for immediate
11    delivery. However, the failure to deliver any motor
12    vehicle shall not be considered a violation of this Act if
13    such failure is due to an act of God, a work stoppage or
14    delay due to a strike or labor difficulty, a shortage of
15    materials, a lack of manufacturing capacity, a freight
16    embargo or other cause over which the manufacturer,
17    distributor, or wholesaler, or any agent thereof has no
18    control;
19        (4) to coerce, or attempt to coerce, any motor vehicle
20    dealer to enter into any agreement with such manufacturer,
21    distributor, wholesaler, distributor branch or division,
22    factory branch or division, or wholesale branch or
23    division, or officer, agent or other representative
24    thereof, or to do any other act prejudicial to the dealer
25    by threatening to reduce his allocation of motor vehicles
26    or cancel any franchise or any selling agreement existing

 

 

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1    between such manufacturer, distributor, wholesaler,
2    distributor branch or division, or factory branch or
3    division, or wholesale branch or division, and the dealer.
4    However, notice in good faith to any motor vehicle dealer
5    of the dealer's violation of any terms or provisions of
6    such franchise or selling agreement or of any law or
7    regulation applicable to the conduct of a motor vehicle
8    dealer shall not constitute a violation of this Act;
9        (5) to require a franchisee to participate in an
10    advertising campaign or contest or any promotional
11    campaign, or to purchase or lease any promotional
12    materials, training materials, show room or other display
13    decorations or materials at the expense of the franchisee;
14        (6) to cancel or terminate the franchise or selling
15    agreement of a motor vehicle dealer without good cause and
16    without giving notice as hereinafter provided; to fail or
17    refuse to extend the franchise or selling agreement of a
18    motor vehicle dealer upon its expiration without good
19    cause and without giving notice as hereinafter provided;
20    or, to offer a renewal, replacement or succeeding
21    franchise or selling agreement containing terms and
22    provisions the effect of which is to substantially change
23    or modify the sales and service obligations or capital
24    requirements of the motor vehicle dealer arbitrarily and
25    without good cause and without giving notice as
26    hereinafter provided notwithstanding any term or provision

 

 

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1    of a franchise or selling agreement.
2            (A) If a manufacturer, distributor, wholesaler,
3        distributor branch or division, factory branch or
4        division or wholesale branch or division intends to
5        cancel or terminate a franchise or selling agreement
6        or intends not to extend or renew a franchise or
7        selling agreement on its expiration, it shall send a
8        letter by certified mail, return receipt requested, to
9        the affected franchisee at least 60 days before the
10        effective date of the proposed action, or not later
11        than 10 days before the proposed action when the
12        reason for the action is based upon either of the
13        following:
14                (i) the business operations of the franchisee
15            have been abandoned or the franchisee has failed
16            to conduct customary sales and service operations
17            during customary business hours for at least 7
18            consecutive business days unless such closing is
19            due to an act of God, strike or labor difficulty or
20            other cause over which the franchisee has no
21            control; or
22                (ii) the conviction of or plea of nolo
23            contendere by the motor vehicle dealer or any
24            operator thereof in a court of competent
25            jurisdiction to an offense punishable by
26            imprisonment for more than two years.

 

 

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1            Each notice of proposed action shall include a
2        detailed statement setting forth the specific grounds
3        for the proposed cancellation, termination, or refusal
4        to extend or renew and shall state that the dealer has
5        only 30 days from receipt of the notice to file with
6        the Motor Vehicle Review Board a written protest
7        against the proposed action.
8            (B) If a manufacturer, distributor, wholesaler,
9        distributor branch or division, factory branch or
10        division or wholesale branch or division intends to
11        change substantially or modify the sales and service
12        obligations or capital requirements of a motor vehicle
13        dealer as a condition to extending or renewing the
14        existing franchise or selling agreement of such motor
15        vehicle dealer, it shall send a letter by certified
16        mail, return receipt requested, to the affected
17        franchisee at least 60 days before the date of
18        expiration of the franchise or selling agreement. Each
19        notice of proposed action shall include a detailed
20        statement setting forth the specific grounds for the
21        proposed action and shall state that the dealer has
22        only 30 days from receipt of the notice to file with
23        the Motor Vehicle Review Board a written protest
24        against the proposed action.
25            (C) Within 30 days from receipt of the notice
26        under subparagraphs (A) and (B), the franchisee may

 

 

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1        file with the Board a written protest against the
2        proposed action.
3            When the protest has been timely filed, the Board
4        shall enter an order, fixing a date (within 60 days of
5        the date of the order), time, and place of a hearing on
6        the protest required under Sections 12 and 29 of this
7        Act, and send by certified mail, return receipt
8        requested, a copy of the order to the manufacturer
9        that filed the notice of intention of the proposed
10        action and to the protesting dealer or franchisee.
11            The manufacturer shall have the burden of proof to
12        establish that good cause exists to cancel or
13        terminate, or fail to extend or renew the franchise or
14        selling agreement of a motor vehicle dealer or
15        franchisee, and to change substantially or modify the
16        sales and service obligations or capital requirements
17        of a motor vehicle dealer as a condition to extending
18        or renewing the existing franchise or selling
19        agreement. The determination whether good cause exists
20        to cancel, terminate, or refuse to renew or extend the
21        franchise or selling agreement, or to change or modify
22        the obligations of the dealer as a condition to offer
23        renewal, replacement, or succession shall be made by
24        the Board under subsection (d) of Section 12 of this
25        Act.
26            (D) Notwithstanding the terms, conditions, or

 

 

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1        provisions of a franchise or selling agreement, the
2        following shall not constitute good cause for
3        cancelling or terminating or failing to extend or
4        renew the franchise or selling agreement: (i) the
5        change of ownership or executive management of the
6        franchisee's dealership; or (ii) the fact that the
7        franchisee or owner of an interest in the franchise
8        owns, has an investment in, participates in the
9        management of, or holds a license for the sale of the
10        same or any other line make of new motor vehicles.
11            (E) The manufacturer may not cancel or terminate,
12        or fail to extend or renew a franchise or selling
13        agreement or change or modify the obligations of the
14        franchisee as a condition to offering a renewal,
15        replacement, or succeeding franchise or selling
16        agreement before the hearing process is concluded as
17        prescribed by this Act, and thereafter, if the Board
18        determines that the manufacturer has failed to meet
19        its burden of proof and that good cause does not exist
20        to allow the proposed action;
21        (7) notwithstanding the terms of any franchise
22    agreement, to fail to indemnify and hold harmless its
23    franchised dealers against any judgment or settlement for
24    damages, including, but not limited to, court costs,
25    expert witness fees, reasonable attorneys' fees of the new
26    motor vehicle dealer, and other expenses incurred in the

 

 

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1    litigation, so long as such fees and costs are reasonable,
2    arising out of complaints, claims, or lawsuits, including,
3    but not limited to, strict liability, negligence,
4    misrepresentation, warranty (express or implied), or
5    rescission of the sale as defined in Section 2-608 of the
6    Uniform Commercial Code, to the extent that the judgment
7    or settlement relates to the alleged defective or
8    negligent manufacture, assembly or design of new motor
9    vehicles, parts or accessories or other functions by the
10    manufacturer, beyond the control of the dealer; provided
11    that, in order to provide an adequate defense, the
12    manufacturer receives notice of the filing of a complaint,
13    claim, or lawsuit within 60 days after the filing;
14        (8) to require or otherwise coerce a motor vehicle
15    dealer to underutilize the motor vehicle dealer's
16    facilities by requiring or otherwise coercing the motor
17    vehicle dealer to exclude or remove from the motor vehicle
18    dealer's facilities operations for selling or servicing of
19    any vehicles for which the motor vehicle dealer has a
20    franchise agreement with another manufacturer,
21    distributor, wholesaler, distribution branch or division,
22    or officer, agent, or other representative thereof;
23    provided, however, that, in light of all existing
24    circumstances, (i) the motor vehicle dealer maintains a
25    reasonable line of credit for each make or line of new
26    motor vehicle, (ii) the new motor vehicle dealer remains

 

 

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1    in compliance with any reasonable facilities requirements
2    of the manufacturer, (iii) no change is made in the
3    principal management of the new motor vehicle dealer, and
4    (iv) the addition of the make or line of new motor vehicles
5    would be reasonable. The reasonable facilities requirement
6    set forth in item (ii) of subsection (d)(8) shall not
7    include any requirement that a franchisee establish or
8    maintain exclusive facilities, personnel, or display
9    space. Any decision by a motor vehicle dealer to sell
10    additional makes or lines at the motor vehicle dealer's
11    facility shall be presumed to be reasonable, and the
12    manufacturer shall have the burden to overcome that
13    presumption. A motor vehicle dealer must provide a written
14    notification of its intent to add a make or line of new
15    motor vehicles to the manufacturer. If the manufacturer
16    does not respond to the motor vehicle dealer, in writing,
17    objecting to the addition of the make or line within 60
18    days after the date that the motor vehicle dealer sends
19    the written notification, then the manufacturer shall be
20    deemed to have approved the addition of the make or line;
21        (9) to use or consider the performance of a motor
22    vehicle dealer relating to the sale of the manufacturer's,
23    distributor's, or wholesaler's vehicles or the motor
24    vehicle dealer's ability to satisfy any minimum sales or
25    market share quota or responsibility relating to the sale
26    of the manufacturer's, distributor's, or wholesaler's new

 

 

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1    vehicles in determining:
2            (A) the motor vehicle dealer's eligibility to
3        purchase program, certified, or other used motor
4        vehicles from the manufacturer, distributor, or
5        wholesaler;
6            (B) the volume, type, or model of program,
7        certified, or other used motor vehicles that a motor
8        vehicle dealer is eligible to purchase from the
9        manufacturer, distributor, or wholesaler;
10            (C) the price of any program, certified, or other
11        used motor vehicle that the dealer is eligible to
12        purchase from the manufacturer, distributor, or
13        wholesaler; or
14            (D) the availability or amount of any discount,
15        credit, rebate, or sales incentive that the dealer is
16        eligible to receive from the manufacturer,
17        distributor, or wholesaler for the purchase of any
18        program, certified, or other used motor vehicle
19        offered for sale by the manufacturer, distributor, or
20        wholesaler;
21        (10) to take any adverse action against a dealer
22    pursuant to an export or sale-for-resale prohibition
23    because the dealer sold or leased a vehicle to a customer
24    who either exported the vehicle to a foreign country or
25    resold the vehicle in violation of the prohibition, unless
26    the export or sale-for-resale prohibition policy was

 

 

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1    provided to the dealer in writing either electronically or
2    on paper, prior to the sale or lease, and the dealer knew
3    or reasonably should have known of the customer's intent
4    to export or resell the vehicle in violation of the
5    prohibition at the time of the sale or lease. If the dealer
6    causes the vehicle to be registered and titled in this or
7    any other state, and collects or causes to be collected
8    any applicable sales or use tax to this State, a
9    rebuttable presumption is established that the dealer did
10    not have reason to know of the customer's intent to resell
11    the vehicle;
12        (11) to coerce or require any dealer to construct
13    improvements to his or her facilities or to install new
14    signs or other franchiser image elements that replace or
15    substantially alter those improvements, signs, or
16    franchiser image elements completed within the past 10
17    years that were required and approved by the manufacturer
18    or one of its affiliates. The 10-year period under this
19    paragraph (11) begins to run for a dealer, including that
20    dealer's successors and assigns, on the date that the
21    manufacturer gives final written approval of the facility
22    improvements or installation of signs or other franchiser
23    image elements or the date that the dealer receives a
24    certificate of occupancy, whichever is later. For the
25    purpose of this paragraph (11), the term "substantially
26    alter" does not include routine maintenance, including,

 

 

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1    but not limited to, interior painting, that is reasonably
2    necessary to keep a dealer facility in attractive
3    condition; or
4        (12) to require a dealer to purchase goods or services
5    to make improvements to the dealer's facilities from a
6    vendor selected, identified, or designated by a
7    manufacturer or one of its affiliates by agreement,
8    program, incentive provision, or otherwise without making
9    available to the dealer the option to obtain the goods or
10    services of substantially similar quality and overall
11    design from a vendor chosen by the dealer and approved by
12    the manufacturer; however, approval by the manufacturer
13    shall not be unreasonably withheld, and the dealer's
14    option to select a vendor shall not be available if the
15    manufacturer provides substantial reimbursement for the
16    goods or services offered. "Substantial reimbursement"
17    means an amount equal to or greater than the cost savings
18    that would result if the dealer were to utilize a vendor of
19    the dealer's own selection instead of using the vendor
20    identified by the manufacturer. For the purpose of this
21    paragraph (12), the term "goods" does not include movable
22    displays, brochures, and promotional materials containing
23    material subject to the intellectual property rights of a
24    manufacturer. If signs, other than signs containing the
25    manufacturer's brand or logo or free-standing signs that
26    are not directly attached to a building, or other

 

 

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1    franchiser image or design elements or trade dress are to
2    be leased to the dealer by a vendor selected, identified,
3    or designated by the manufacturer, the dealer has the
4    right to purchase the signs or other franchiser image or
5    design elements or trade dress of substantially similar
6    quality and design from a vendor selected by the dealer if
7    the signs, franchiser image or design elements, or trade
8    dress are approved by the manufacturer. Approval by the
9    manufacturer shall not be unreasonably withheld. This
10    paragraph (12) shall not be construed to allow a dealer or
11    vendor to impair, infringe upon, or eliminate, directly or
12    indirectly, the intellectual property rights of the
13    manufacturer, including, but not limited to, the
14    manufacturer's intellectual property rights in any
15    trademarks or trade dress, or other intellectual property
16    interests owned or controlled by the manufacturer. This
17    paragraph (12) shall not be construed to permit a dealer
18    to erect or maintain signs that do not conform to the
19    manufacturer's intellectual property rights or trademark
20    or trade dress usage guidelines.
21    (e) It shall be deemed a violation for a manufacturer, a
22distributor, a wholesaler, a distributor branch or division or
23officer, agent or other representative thereof:
24        (1) to resort to or use any false or misleading
25    advertisement in connection with his business as such
26    manufacturer, distributor, wholesaler, distributor branch

 

 

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1    or division or officer, agent or other representative
2    thereof;
3        (2) to offer to sell or lease, or to sell or lease, any
4    new motor vehicle to any motor vehicle dealer at a lower
5    actual price therefor than the actual price offered to any
6    other motor vehicle dealer for the same model vehicle
7    similarly equipped or to utilize any device including, but
8    not limited to, sales promotion plans or programs which
9    result in such lesser actual price or fail to make
10    available to any motor vehicle dealer any preferential
11    pricing, incentive, rebate, finance rate, or low interest
12    loan program offered to competing motor vehicle dealers in
13    other contiguous states. However, the provisions of this
14    paragraph shall not apply to sales to a motor vehicle
15    dealer for resale to any unit of the United States
16    Government, the State or any of its political
17    subdivisions;
18        (3) to offer to sell or lease, or to sell or lease, any
19    new motor vehicle to any person, except a wholesaler,
20    distributor or manufacturer's employees at a lower actual
21    price therefor than the actual price offered and charged
22    to a motor vehicle dealer for the same model vehicle
23    similarly equipped or to utilize any device which results
24    in such lesser actual price. However, the provisions of
25    this paragraph shall not apply to sales to a motor vehicle
26    dealer for resale to any unit of the United States

 

 

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1    Government, the State or any of its political
2    subdivisions;
3        (4) to prevent or attempt to prevent by contract or
4    otherwise any motor vehicle dealer or franchisee from
5    changing the executive management control of the motor
6    vehicle dealer or franchisee unless the franchiser, having
7    the burden of proof, proves that such change of executive
8    management will result in executive management control by
9    a person or persons who are not of good moral character or
10    who do not meet the franchiser's existing and, with
11    consideration given to the volume of sales and service of
12    the dealership, uniformly applied minimum business
13    experience standards in the market area. However, where
14    the manufacturer rejects a proposed change in executive
15    management control, the manufacturer shall give written
16    notice of his reasons to the dealer within 60 days of
17    notice to the manufacturer by the dealer of the proposed
18    change. If the manufacturer does not send a letter to the
19    franchisee by certified mail, return receipt requested,
20    within 60 days from receipt by the manufacturer of the
21    proposed change, then the change of the executive
22    management control of the franchisee shall be deemed
23    accepted as proposed by the franchisee, and the
24    manufacturer shall give immediate effect to such change;
25        (5) to prevent or attempt to prevent by contract or
26    otherwise any motor vehicle dealer from establishing or

 

 

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1    changing the capital structure of his dealership or the
2    means by or through which he finances the operation
3    thereof; provided the dealer meets any reasonable capital
4    standards agreed to between the dealer and the
5    manufacturer, distributor or wholesaler, who may require
6    that the sources, method and manner by which the dealer
7    finances or intends to finance its operation, equipment or
8    facilities be fully disclosed;
9        (6) to refuse to give effect to or prevent or attempt
10    to prevent by contract or otherwise any motor vehicle
11    dealer or any officer, partner or stockholder of any motor
12    vehicle dealer from selling or transferring any part of
13    the interest of any of them to any other person or persons
14    or party or parties unless such sale or transfer is to a
15    transferee who would not otherwise qualify for a new motor
16    vehicle dealers license under the Illinois Vehicle Code or
17    unless the franchiser, having the burden of proof, proves
18    that such sale or transfer is to a person or party who is
19    not of good moral character or does not meet the
20    franchiser's existing and reasonable capital standards
21    and, with consideration given to the volume of sales and
22    service of the dealership, uniformly applied minimum
23    business experience standards in the market area. However,
24    nothing herein shall be construed to prevent a franchiser
25    from implementing affirmative action programs providing
26    business opportunities for minorities or from complying

 

 

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1    with applicable federal, State or local law:
2            (A) If the manufacturer intends to refuse to
3        approve the sale or transfer of all or a part of the
4        interest, then it shall, within 60 days from receipt
5        of the completed application forms generally utilized
6        by a manufacturer to conduct its review and a copy of
7        all agreements regarding the proposed transfer, send a
8        letter by certified mail, return receipt requested,
9        advising the franchisee of any refusal to approve the
10        sale or transfer of all or part of the interest and
11        shall state that the dealer only has 30 days from the
12        receipt of the notice to file with the Motor Vehicle
13        Review Board a written protest against the proposed
14        action. The notice shall set forth specific criteria
15        used to evaluate the prospective transferee and the
16        grounds for refusing to approve the sale or transfer
17        to that transferee. Within 30 days from the
18        franchisee's receipt of the manufacturer's notice, the
19        franchisee may file with the Board a written protest
20        against the proposed action.
21            When a protest has been timely filed, the Board
22        shall enter an order, fixing the date (within 60 days
23        of the date of such order), time, and place of a
24        hearing on the protest, required under Sections 12 and
25        29 of this Act, and send by certified mail, return
26        receipt requested, a copy of the order to the

 

 

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1        manufacturer that filed notice of intention of the
2        proposed action and to the protesting franchisee.
3            The manufacturer shall have the burden of proof to
4        establish that good cause exists to refuse to approve
5        the sale or transfer to the transferee. The
6        determination whether good cause exists to refuse to
7        approve the sale or transfer shall be made by the Board
8        under subdivisions (6)(B). The manufacturer shall not
9        refuse to approve the sale or transfer by a dealer or
10        an officer, partner, or stockholder of a franchise or
11        any part of the interest to any person or persons
12        before the hearing process is concluded as prescribed
13        by this Act, and thereafter if the Board determines
14        that the manufacturer has failed to meet its burden of
15        proof and that good cause does not exist to refuse to
16        approve the sale or transfer to the transferee.
17            (B) Good cause to refuse to approve such sale or
18        transfer under this Section is established when such
19        sale or transfer is to a transferee who would not
20        otherwise qualify for a new motor vehicle dealers
21        license under the Illinois Vehicle Code or such sale
22        or transfer is to a person or party who is not of good
23        moral character or does not meet the franchiser's
24        existing and reasonable capital standards and, with
25        consideration given to the volume of sales and service
26        of the dealership, uniformly applied minimum business

 

 

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1        experience standards in the market area.
2        (7) to obtain money, goods, services, anything of
3    value, or any other benefit from any other person with
4    whom the motor vehicle dealer does business, on account of
5    or in relation to the transactions between the dealer and
6    the other person as compensation, except for services
7    actually rendered, unless such benefit is promptly
8    accounted for and transmitted to the motor vehicle dealer;
9        (8) to grant an additional franchise in the relevant
10    market area of an existing franchise of the same line make
11    or to relocate an existing motor vehicle dealership within
12    or into a relevant market area of an existing franchise of
13    the same line make. However, if the manufacturer wishes to
14    grant such an additional franchise to an independent
15    person in a bona fide relationship in which such person is
16    prepared to make a significant investment subject to loss
17    in such a dealership, or if the manufacturer wishes to
18    relocate an existing motor vehicle dealership, then the
19    manufacturer shall send a letter by certified mail, return
20    receipt requested, to each existing dealer or dealers of
21    the same line make whose relevant market area includes the
22    proposed location of the additional or relocated franchise
23    at least 60 days before the manufacturer grants an
24    additional franchise or relocates an existing franchise of
25    the same line make within or into the relevant market area
26    of an existing franchisee of the same line make. Each

 

 

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1    notice shall set forth the specific grounds for the
2    proposed grant of an additional or relocation of an
3    existing franchise and shall state that the dealer has
4    only 30 days from the date of receipt of the notice to file
5    with the Motor Vehicle Review Board a written protest
6    against the proposed action. Unless the parties agree upon
7    the grant or establishment of the additional or relocated
8    franchise within 30 days from the date the notice was
9    received by the existing franchisee of the same line make
10    or any person entitled to receive such notice, the
11    franchisee or other person may file with the Board a
12    written protest against the grant or establishment of the
13    proposed additional or relocated franchise.
14        When a protest has been timely filed, the Board shall
15    enter an order fixing a date (within 60 days of the date of
16    the order), time, and place of a hearing on the protest,
17    required under Sections 12 and 29 of this Act, and send by
18    certified or registered mail, return receipt requested, a
19    copy of the order to the manufacturer that filed the
20    notice of intention to grant or establish the proposed
21    additional or relocated franchise and to the protesting
22    dealer or dealers of the same line make whose relevant
23    market area includes the proposed location of the
24    additional or relocated franchise.
25        When more than one protest is filed against the grant
26    or establishment of the additional or relocated franchise

 

 

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1    of the same line make, the Board may consolidate the
2    hearings to expedite disposition of the matter. The
3    manufacturer shall have the burden of proof to establish
4    that good cause exists to allow the grant or establishment
5    of the additional or relocated franchise. The manufacturer
6    may not grant or establish the additional franchise or
7    relocate the existing franchise before the hearing process
8    is concluded as prescribed by this Act, and thereafter if
9    the Board determines that the manufacturer has failed to
10    meet its burden of proof and that good cause does not exist
11    to allow the grant or establishment of the additional
12    franchise or relocation of the existing franchise.
13        The determination whether good cause exists for
14    allowing the grant or establishment of an additional
15    franchise or relocated existing franchise, shall be made
16    by the Board under subsection (c) of Section 12 of this
17    Act. If the manufacturer seeks to enter into a contract,
18    agreement or other arrangement with any person,
19    establishing any additional motor vehicle dealership or
20    other facility, limited to the sale of factory repurchase
21    vehicles or late model vehicles, then the manufacturer
22    shall follow the notice procedures set forth in this
23    Section and the determination whether good cause exists
24    for allowing the proposed agreement shall be made by the
25    Board under subsection (c) of Section 12, with the
26    manufacturer having the burden of proof.

 

 

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1            A. (Blank).
2            B. For the purposes of this Section, appointment
3        of a successor motor vehicle dealer at the same
4        location as its predecessor, or within 2 miles of such
5        location, or the relocation of an existing dealer or
6        franchise within 2 miles of the relocating dealer's or
7        franchisee's existing location, shall not be construed
8        as a grant, establishment or the entering into of an
9        additional franchise or selling agreement, or a
10        relocation of an existing franchise. The reopening of
11        a motor vehicle dealership that has not been in
12        operation for 18 months or more shall be deemed the
13        grant of an additional franchise or selling agreement.
14            C. This Section does not apply to the relocation
15        of an existing dealership or franchise in a county
16        having a population of more than 300,000 persons when
17        the new location is within the dealer's current
18        relevant market area, provided the new location is
19        more than 7 miles from the nearest dealer of the same
20        line make. This Section does not apply to the
21        relocation of an existing dealership or franchise in a
22        county having a population of less than 300,000
23        persons when the new location is within the dealer's
24        current relevant market area, provided the new
25        location is more than 12 miles from the nearest dealer
26        of the same line make. A dealer that would be farther

 

 

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1        away from the new location of an existing dealership
2        or franchise of the same line make after a relocation
3        may not file a written protest against the relocation
4        with the Motor Vehicle Review Board.
5            D. Nothing in this Section shall be construed to
6        prevent a franchiser from implementing affirmative
7        action programs providing business opportunities for
8        minorities or from complying with applicable federal,
9        State or local law;
10        (9) to require a motor vehicle dealer to assent to a
11    release, assignment, novation, waiver or estoppel which
12    would relieve any person from liability imposed by this
13    Act;
14        (10) to prevent or refuse to give effect to the
15    succession to the ownership or management control of a
16    dealership by any legatee under the will of a dealer or to
17    an heir under the laws of descent and distribution of this
18    State unless the franchisee has designated a successor to
19    the ownership or management control under the succession
20    provisions of the franchise. Unless the franchiser, having
21    the burden of proof, proves that the successor is a person
22    who is not of good moral character or does not meet the
23    franchiser's existing and reasonable capital standards
24    and, with consideration given to the volume of sales and
25    service of the dealership, uniformly applied minimum
26    business experience standards in the market area, any

 

 

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1    designated successor of a dealer or franchisee may succeed
2    to the ownership or management control of a dealership
3    under the existing franchise if:
4                (i) The designated successor gives the
5            franchiser written notice by certified mail,
6            return receipt requested, of his or her intention
7            to succeed to the ownership of the dealer within
8            60 days of the dealer's death or incapacity; and
9                (ii) The designated successor agrees to be
10            bound by all the terms and conditions of the
11            existing franchise.
12        Notwithstanding the foregoing, in the event the motor
13    vehicle dealer or franchisee and manufacturer have duly
14    executed an agreement concerning succession rights prior
15    to the dealer's death or incapacitation, the agreement
16    shall be observed.
17            (A) If the franchiser intends to refuse to honor
18        the successor to the ownership of a deceased or
19        incapacitated dealer or franchisee under an existing
20        franchise agreement, the franchiser shall send a
21        letter by certified mail, return receipt requested, to
22        the designated successor within 60 days from receipt
23        of a proposal advising of its intent to refuse to honor
24        the succession and to discontinue the existing
25        franchise agreement and shall state that the
26        designated successor only has 30 days from the receipt

 

 

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1        of the notice to file with the Motor Vehicle Review
2        Board a written protest against the proposed action.
3        The notice shall set forth the specific grounds for
4        the refusal to honor the succession and discontinue
5        the existing franchise agreement.
6            If notice of refusal is not timely served upon the
7        designated successor, the franchise agreement shall
8        continue in effect subject to termination only as
9        otherwise permitted by paragraph (6) of subsection (d)
10        of Section 4 of this Act.
11            Within 30 days from the date the notice was
12        received by the designated successor or any other
13        person entitled to notice, the designee or other
14        person may file with the Board a written protest
15        against the proposed action.
16            When a protest has been timely filed, the Board
17        shall enter an order, fixing a date (within 60 days of
18        the date of the order), time, and place of a hearing on
19        the protest, required under Sections 12 and 29 of this
20        Act, and send by certified mail, return receipt
21        requested, a copy of the order to the franchiser that
22        filed the notice of intention of the proposed action
23        and to the protesting designee or such other person.
24            The manufacturer shall have the burden of proof to
25        establish that good cause exists to refuse to honor
26        the succession and discontinue the existing franchise

 

 

HB2435- 29 -LRB102 13556 JLS 18904 b

1        agreement. The determination whether good cause exists
2        to refuse to honor the succession shall be made by the
3        Board under subdivision (B) of this paragraph (10).
4        The manufacturer shall not refuse to honor the
5        succession or discontinue the existing franchise
6        agreement before the hearing process is concluded as
7        prescribed by this Act, and thereafter if the Board
8        determines that it has failed to meet its burden of
9        proof and that good cause does not exist to refuse to
10        honor the succession and discontinue the existing
11        franchise agreement.
12            (B) No manufacturer shall impose any conditions
13        upon honoring the succession and continuing the
14        existing franchise agreement with the designated
15        successor other than that the franchisee has
16        designated a successor to the ownership or management
17        control under the succession provisions of the
18        franchise, or that the designated successor is of good
19        moral character or meets the reasonable capital
20        standards and, with consideration given to the volume
21        of sales and service of the dealership, uniformly
22        applied minimum business experience standards in the
23        market area;
24        (11) to prevent or refuse to approve a proposal to
25    establish a successor franchise at a location previously
26    approved by the franchiser when submitted with the

 

 

HB2435- 30 -LRB102 13556 JLS 18904 b

1    voluntary termination by the existing franchisee unless
2    the successor franchisee would not otherwise qualify for a
3    new motor vehicle dealer's license under the Illinois
4    Vehicle Code or unless the franchiser, having the burden
5    of proof, proves that such proposed successor is not of
6    good moral character or does not meet the franchiser's
7    existing and reasonable capital standards and, with
8    consideration given to the volume of sales and service of
9    the dealership, uniformly applied minimum business
10    experience standards in the market area. However, when
11    such a rejection of a proposal is made, the manufacturer
12    shall give written notice of its reasons to the franchisee
13    within 60 days of receipt by the manufacturer of the
14    proposal. However, nothing herein shall be construed to
15    prevent a franchiser from implementing affirmative action
16    programs providing business opportunities for minorities,
17    or from complying with applicable federal, State or local
18    law;
19        (12) to prevent or refuse to grant a franchise to a
20    person because such person owns, has investment in or
21    participates in the management of or holds a franchise for
22    the sale of another make or line of motor vehicles within 7
23    miles of the proposed franchise location in a county
24    having a population of more than 300,000 persons, or
25    within 12 miles of the proposed franchise location in a
26    county having a population of less than 300,000 persons;

 

 

HB2435- 31 -LRB102 13556 JLS 18904 b

1        (13) to prevent or attempt to prevent any new motor
2    vehicle dealer from establishing any additional motor
3    vehicle dealership or other facility limited to the sale
4    of factory repurchase vehicles or late model vehicles or
5    otherwise offering for sale factory repurchase vehicles of
6    the same line make at an existing franchise by failing to
7    make available any contract, agreement or other
8    arrangement which is made available or otherwise offered
9    to any person; or
10        (14) to exercise a right of first refusal or other
11    right to acquire a franchise from a dealer, unless the
12    manufacturer:
13            (A) notifies the dealer in writing that it intends
14        to exercise its right to acquire the franchise not
15        later than 60 days after the manufacturer's or
16        distributor's receipt of a notice of the proposed
17        transfer from the dealer and all information and
18        documents reasonably and customarily required by the
19        manufacturer or distributor supporting the proposed
20        transfer;
21            (B) pays to the dealer the same or greater
22        consideration as the dealer has contracted to receive
23        in connection with the proposed transfer or sale of
24        all or substantially all of the dealership assets,
25        stock, or other ownership interest, including the
26        purchase or lease of all real property, leasehold, or

 

 

HB2435- 32 -LRB102 13556 JLS 18904 b

1        improvements related to the transfer or sale of the
2        dealership. Upon exercise of the right of first
3        refusal or such other right, the manufacturer or
4        distributor shall have the right to assign the lease
5        or to convey the real property;
6            (C) assumes all of the duties, obligations, and
7        liabilities contained in the agreements that were to
8        be assumed by the proposed transferee and with respect
9        to which the manufacturer or distributor exercised the
10        right of first refusal or other right to acquire the
11        franchise;
12            (D) reimburses the proposed transferee for all
13        reasonable expenses incurred in evaluating,
14        investigating, and negotiating the transfer of the
15        dealership prior to the manufacturer's or
16        distributor's exercise of its right of first refusal
17        or other right to acquire the dealership. For purposes
18        of this paragraph, "reasonable expenses" includes the
19        usual and customary legal and accounting fees charged
20        for similar work, as well as expenses associated with
21        the evaluation and investigation of any real property
22        on which the dealership is operated. The proposed
23        transferee shall submit an itemized list of its
24        expenses to the manufacturer or distributor not later
25        than 30 days after the manufacturer's or distributor's
26        exercise of the right of first refusal or other right

 

 

HB2435- 33 -LRB102 13556 JLS 18904 b

1        to acquire the motor vehicle franchise. The
2        manufacturer or distributor shall reimburse the
3        proposed transferee for its expenses not later than 90
4        days after receipt of the itemized list. A
5        manufacturer or distributor may request to be provided
6        with the itemized list of expenses before exercising
7        the manufacturer's or distributor's right of first
8        refusal.
9        Except as provided in this paragraph (14), neither the
10    selling dealer nor the manufacturer or distributor shall
11    have any liability to any person as a result of a
12    manufacturer or distributor exercising its right of first
13    refusal.
14        For the purpose of this paragraph, "proposed
15    transferee" means the person to whom the franchise would
16    have been transferred to, or was proposed to be
17    transferred to, had the right of first refusal or other
18    right to acquire the franchise not been exercised by the
19    manufacturer or distributor.
20    (f) It is deemed a violation for a manufacturer, a
21distributor, a wholesaler, a distributor branch or division, a
22factory branch or division, or a wholesale branch or division,
23or officer, agent, broker, shareholder, except a shareholder
24of 1% or less of the outstanding shares of any class of
25securities of a manufacturer, distributor, or wholesaler which
26is a publicly traded corporation, or other representative,

 

 

HB2435- 34 -LRB102 13556 JLS 18904 b

1directly or indirectly, to own or operate a place of business
2as a motor vehicle franchisee or motor vehicle financing
3affiliate, except that, this subsection shall not prohibit:
4        (1) the ownership or operation of a place of business
5    by a manufacturer, distributor, or wholesaler for a
6    period, not to exceed 18 months, during the transition
7    from one motor vehicle franchisee to another;
8        (2) the investment in a motor vehicle franchisee by a
9    manufacturer, distributor, or wholesaler if the investment
10    is for the sole purpose of enabling a partner or
11    shareholder in that motor vehicle franchisee to acquire an
12    interest in that motor vehicle franchisee and that partner
13    or shareholder is not otherwise employed by or associated
14    with the manufacturer, distributor, or wholesaler and
15    would not otherwise have the requisite capital investment
16    funds to invest in the motor vehicle franchisee, and has
17    the right to purchase the entire equity interest of the
18    manufacturer, distributor, or wholesaler in the motor
19    vehicle franchisee within a reasonable period of time not
20    to exceed 5 years; or
21        (3) the ownership or operation of a place of business
22    by a manufacturer that manufactures only diesel engines
23    for installation in trucks having a gross vehicle weight
24    rating of more than 16,000 pounds that are required to be
25    registered under the Illinois Vehicle Code, provided that:
26            (A) the manufacturer does not otherwise

 

 

HB2435- 35 -LRB102 13556 JLS 18904 b

1        manufacture, distribute, or sell motor vehicles as
2        defined under Section 1-217 of the Illinois Vehicle
3        Code;
4            (B) the manufacturer owned a place of business and
5        it was in operation as of January 1, 2016;
6            (C) the manufacturer complies with all obligations
7        owed to dealers that are not owned, operated, or
8        controlled by the manufacturer, including, but not
9        limited to those obligations arising pursuant to
10        Section 6;
11            (D) to further avoid any acts or practices, the
12        effect of which may be to lessen or eliminate
13        competition, the manufacturer provides to dealers on
14        substantially equal terms access to all support for
15        completing repairs, including, but not limited to,
16        parts and assemblies, training, and technical service
17        bulletins, and other information concerning repairs
18        that the manufacturer provides to facilities that are
19        owned, operated, or controlled by the manufacturer;
20        and
21            (E) the manufacturer does not require that
22        warranty repair work be performed by a
23        manufacturer-owned repair facility and the
24        manufacturer provides any dealer that has an agreement
25        with the manufacturer to sell and perform warranty
26        repairs on the manufacturer's engines the opportunity

 

 

HB2435- 36 -LRB102 13556 JLS 18904 b

1        to perform warranty repairs on those engines,
2        regardless of whether the dealer sold the truck into
3        which the engine was installed.
4    (g) Notwithstanding the terms, provisions, or conditions
5of any agreement or waiver, it shall be deemed a violation for
6a manufacturer, a distributor, a wholesaler, a distributor
7branch or division, a factory branch or division, or a
8wholesale branch or division, or officer, agent or other
9representative thereof, to directly or indirectly condition
10the awarding of a franchise to a prospective new motor vehicle
11dealer, the addition of a line make or franchise to an existing
12dealer, the renewal of a franchise of an existing dealer, the
13approval of the relocation of an existing dealer's facility,
14or the approval of the sale or transfer of the ownership of a
15franchise on the willingness of a dealer, proposed new dealer,
16or owner of an interest in the dealership facility to enter
17into a site control agreement or exclusive use agreement
18unless separate and reasonable consideration was offered and
19accepted for that agreement.
20    For purposes of this subsection (g), the terms "site
21control agreement" and "exclusive use agreement" include any
22agreement that has the effect of either (i) requiring that the
23dealer establish or maintain exclusive dealership facilities;
24or (ii) restricting the ability of the dealer, or the ability
25of the dealer's lessor in the event the dealership facility is
26being leased, to transfer, sell, lease, or change the use of

 

 

HB2435- 37 -LRB102 13556 JLS 18904 b

1the dealership premises, whether by sublease, lease,
2collateral pledge of lease, or other similar agreement. "Site
3control agreement" and "exclusive use agreement" also include
4a manufacturer restricting the ability of a dealer to
5transfer, sell, or lease the dealership premises by right of
6first refusal to purchase or lease, option to purchase, or
7option to lease if the transfer, sale, or lease of the
8dealership premises is to a person who is an immediate family
9member of the dealer. For the purposes of this subsection (g),
10"immediate family member" means a spouse, parent, son,
11daughter, son-in-law, daughter-in-law, brother, and sister.
12    If a manufacturer exercises any right of first refusal to
13purchase or lease or option to purchase or lease with regard to
14a transfer, sale, or lease of the dealership premises to a
15person who is not an immediate family member of the dealer,
16then (1) within 60 days from the receipt of the completed
17application forms generally utilized by a manufacturer to
18conduct its review and a copy of all agreements regarding the
19proposed transfer, the manufacturer must notify the dealer of
20its intent to exercise the right of first refusal to purchase
21or lease or option to purchase or lease and (2) the exercise of
22the right of first refusal to purchase or lease or option to
23purchase or lease must result in the dealer receiving
24consideration, terms, and conditions that either are the same
25as or greater than that which they have contracted to receive
26in connection with the proposed transfer, sale, or lease of

 

 

HB2435- 38 -LRB102 13556 JLS 18904 b

1the dealership premises.
2    Any provision contained in any agreement entered into on
3or after November 25, 2009 (the effective date of Public Act
496-824) that is inconsistent with the provisions of this
5subsection (g) shall be voidable at the election of the
6affected dealer, prospective dealer, or owner of an interest
7in the dealership facility.
8    (h) For purposes of this subsection:
9    "Successor manufacturer" means any motor vehicle
10manufacturer that, on or after January 1, 2009, acquires,
11succeeds to, or assumes any part of the business of another
12manufacturer, referred to as the "predecessor manufacturer",
13as the result of any of the following:
14        (i) A change in ownership, operation, or control of
15    the predecessor manufacturer by sale or transfer of
16    assets, corporate stock or other equity interest,
17    assignment, merger, consolidation, combination, joint
18    venture, redemption, court-approved sale, operation of law
19    or otherwise.
20        (ii) The termination, suspension, or cessation of a
21    part or all of the business operations of the predecessor
22    manufacturer.
23        (iii) The discontinuance of the sale of the product
24    line.
25        (iv) A change in distribution system by the
26    predecessor manufacturer, whether through a change in

 

 

HB2435- 39 -LRB102 13556 JLS 18904 b

1    distributor or the predecessor manufacturer's decision to
2    cease conducting business through a distributor
3    altogether.
4    "Former Franchisee" means a new motor vehicle dealer that
5has entered into a franchise with a predecessor manufacturer
6and that has either:
7        (i) entered into a termination agreement or deferred
8    termination agreement with a predecessor or successor
9    manufacturer related to such franchise; or
10        (ii) has had such franchise canceled, terminated,
11    nonrenewed, noncontinued, rejected, nonassumed, or
12    otherwise ended.
13    For a period of 3 years from: (i) the date that a successor
14manufacturer acquires, succeeds to, or assumes any part of the
15business of a predecessor manufacturer; (ii) the last day that
16a former franchisee is authorized to remain in business as a
17franchised dealer with respect to a particular franchise under
18a termination agreement or deferred termination agreement with
19a predecessor or successor manufacturer; (iii) the last day
20that a former franchisee that was cancelled, terminated,
21nonrenewed, noncontinued, rejected, nonassumed, or otherwise
22ended by a predecessor or successor manufacturer is authorized
23to remain in business as a franchised dealer with respect to a
24particular franchise; or (iv) November 25, 2009 (the effective
25date of Public Act 96-824), whichever is latest, it shall be
26unlawful for such successor manufacturer to enter into a same

 

 

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1line make franchise with any person or to permit the
2relocation of any existing same line make franchise, for a
3line make of the predecessor manufacturer that would be
4located or relocated within the relevant market area of a
5former franchisee who owned or leased a dealership facility in
6that relevant market area without first offering the
7additional or relocated franchise to the former franchisee, or
8the designated successor of such former franchisee in the
9event the former franchisee is deceased or a person with a
10disability, at no cost and without any requirements or
11restrictions other than those imposed generally on the
12manufacturer's other franchisees at that time, unless one of
13the following applies:
14        (1) As a result of the former franchisee's
15    cancellation, termination, noncontinuance, or nonrenewal
16    of the franchise, the predecessor manufacturer had
17    consolidated the line make with another of its line makes
18    for which the predecessor manufacturer had a franchisee
19    with a then-existing dealership facility located within
20    that relevant market area.
21        (2) The successor manufacturer has paid the former
22    franchisee, or the designated successor of such former
23    franchisee in the event the former franchisee is deceased
24    or a person with a disability, the fair market value of the
25    former franchisee's franchise on (i) the date the
26    franchiser announces the action which results in the

 

 

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1    termination, cancellation, or nonrenewal; or (ii) the date
2    the action which results in termination, cancellation, or
3    nonrenewal first became general knowledge; or (iii) the
4    day 12 months prior to the date on which the notice of
5    termination, cancellation, or nonrenewal is issued,
6    whichever amount is higher. Payment is due within 90 days
7    of the effective date of the termination, cancellation, or
8    nonrenewal. If the termination, cancellation, or
9    nonrenewal is due to a manufacturer's change in
10    distributors, the manufacturer may avoid paying fair
11    market value to the dealer if the new distributor or the
12    manufacturer offers the dealer a franchise agreement with
13    terms acceptable to the dealer.
14        (3) The successor manufacturer proves that it would
15    have had good cause to terminate the franchise agreement
16    of the former franchisee, or the successor of the former
17    franchisee under item (e)(10) in the event that the former
18    franchisee is deceased or a person with a disability. The
19    determination of whether the successor manufacturer would
20    have had good cause to terminate the franchise agreement
21    of the former franchisee, or the successor of the former
22    franchisee, shall be made by the Board under subsection
23    (d) of Section 12. A successor manufacturer that seeks to
24    assert that it would have had good cause to terminate a
25    former franchisee, or the successor of the former
26    franchisee, must file a petition seeking a hearing on this

 

 

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1    issue before the Board and shall have the burden of
2    proving that it would have had good cause to terminate the
3    former franchisee or the successor of the former
4    franchisee. No successor dealer, other than the former
5    franchisee, may be appointed or franchised by the
6    successor manufacturer within the relevant market area of
7    the former franchisee until the Board has held a hearing
8    and rendered a determination on the issue of whether the
9    successor manufacturer would have had good cause to
10    terminate the former franchisee.
11    In the event that a successor manufacturer attempts to
12enter into a same line make franchise with any person or to
13permit the relocation of any existing line make franchise
14under this subsection (h) at a location that is within the
15relevant market area of 2 or more former franchisees, then the
16successor manufacturer may not offer it to any person other
17than one of those former franchisees unless the successor
18manufacturer can prove that at least one of the 3 exceptions in
19items (1), (2), and (3) of this subsection (h) applies to each
20of those former franchisees.
21(Source: P.A. 99-143, eff. 7-27-15; 99-844, eff. 8-19-16;
22100-201, eff. 8-18-17; 100-308, eff. 8-24-17; 100-863, eff.
238-14-18.)