Public Act 095-0678
Public Act 0678 95TH GENERAL ASSEMBLY
|Public Act 095-0678
||LRB095 06228 LCT 26322 b
AN ACT concerning business.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
The Motor Vehicle Franchise Act is amended by
changing Section 2 as follows:
(815 ILCS 710/2)
(from Ch. 121 1/2, par. 752)
As used in this Act, the following
unless the context otherwise requires, have the
(a) "Motor vehicle", any motor driven vehicle required to
under "The Illinois Vehicle Code".
(b) "Manufacturer", any person engaged in the business of
or assembling new and unused motor vehicles.
(c) "Factory branch", a branch office maintained by a
manufactures or assembles motor vehicles
for sale to distributors or motor
vehicle dealers or which is
maintained for directing and supervising the
of the manufacturer.
(d) "Distributor branch", a branch office maintained by a
or wholesaler who or which sells or distributes new
or used motor vehicles
to motor vehicle dealers.
(e) "Factory representative", a representative employed by
or employed by a factory branch for the purpose
of making or promoting the
sale of motor vehicles or for
contracting with, supervising, servicing or
vehicle dealers or prospective motor vehicle dealers.
(f) "Distributor representative", a representative
employed by a
distributor branch, distributor or wholesaler.
(g) "Distributor" or "wholesaler", any person who sells or
new or used motor vehicles to motor vehicle dealers
or who maintains
distributor representatives within the State.
(h) "Motor vehicle dealer", any person who, in the ordinary
business, is engaged in the business of selling new
or used motor vehicles
to consumers or other end users.
(i) "Franchise", an oral or written arrangement for a
definite or indefinite
period in which a manufacturer,
distributor or wholesaler grants to a motor
vehicle dealer a
license to use a trade name, service mark, or related
characteristic, and in which there is a community of interest
marketing of motor vehicles or services related thereto
retail, leasing or otherwise.
(j) "Franchiser", a manufacturer, distributor or
wholesaler who grants
a franchise to a motor vehicle dealer.
(k) "Franchisee", a motor vehicle dealer to whom a
franchise is offered
(l) "Sale", shall include the issuance, transfer,
agreement for transfer,
exchange, pledge, hypothecation,
mortgage in any form, whether by transfer
in trust or
otherwise, of any motor vehicle or interest therein or of any
franchise related thereto; and any option, subscription or
or solicitation, looking to a sale, or offer or
attempt to sell in any form,
whether oral or written. A gift or
delivery of any motor vehicle or franchise
with respect thereto
with or as a bonus on account of the sale of anything
deemed a sale of such motor vehicle or franchise.
(m) "Fraud", shall include, in addition to its normal legal
the following: a misrepresentation in any manner,
false or due to reckless disregard for
truth or falsity, of a material fact;
a promise or
not made honestly and in good faith; and an
intentional failure to disclose
a material fact.
(n) "Person", a natural person, corporation, partnership,
trust or other
entity, and in case of an entity, it shall
include any other entity in
which it has a majority interest or
which it effectively controls as well
as the individual
officers, directors and other persons in active control
activities of each such entity.
(o) "New motor vehicle", a motor vehicle which has not been
sold to any person except a distributor or
wholesaler or motor vehicle dealer
(p) "Market Area", the franchisee's area of primary
defined in its franchise.
(q) "Relevant Market Area", the area within a radius of 10
the principal location of a franchise or dealership
if said principal location
is in a county having a population
of more than 300,000 persons; if the
principal location of a
franchise or dealership is in a county having a
less than 300,000 persons, then "relevant market area" shall
mean the area within a radius of 15 miles from the principal
said franchise or dealership
; or the area of
responsibility as defined in
the franchise agreement,
whichever is greater
(r) "Late model vehicle" means a vehicle of the current
model year and
one, 2, or 3 preceding model years for which the
motor vehicle dealer holds
an existing franchise from the
manufacturer for that same line make.
(s) "Factory repurchase vehicle" means a motor vehicle of
model year or a late model vehicle reacquired by
the manufacturer under an
existing agreement or otherwise from
a fleet, lease or daily rental company
or under any State or
federal law or program relating to allegedly
motor vehicles, and offered for sale and resold by the
manufacturer directly or at a factory authorized or sponsored
(t) "Board" means the Motor Vehicle Review Board
under this Act.
(u) "Secretary of State" means the Secretary of State of
(v) "Good cause" means facts establishing commercial
lawful or privileged competition and
business practices as defined at common
(Source: P.A. 89-145, eff. 7-14-95.)
This Act takes effect upon
Effective Date: 10/11/2007