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Public Act 095-0678
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| SB1344 Enrolled |
LRB095 06228 LCT 26322 b |
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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 |
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 |
words shall,
unless the context otherwise requires, have the |
following meanings:
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(a) "Motor vehicle", any motor driven vehicle required to |
be registered
under "The Illinois Vehicle Code".
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(b) "Manufacturer", any person engaged in the business of |
manufacturing
or assembling new and unused motor vehicles.
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(c) "Factory branch", a branch office maintained by a |
manufacturer which
manufactures or assembles motor vehicles |
for sale to distributors or motor
vehicle dealers or which is |
maintained for directing and supervising the
representatives |
of the manufacturer.
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(d) "Distributor branch", a branch office maintained by a |
distributor
or wholesaler who or which sells or distributes new |
or used motor vehicles
to motor vehicle dealers.
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(e) "Factory representative", a representative employed by |
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 |
contracting with, supervising, servicing or
instructing motor |
vehicle dealers or prospective motor vehicle dealers.
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(f) "Distributor representative", a representative |
employed by a
distributor branch, distributor or wholesaler.
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(g) "Distributor" or "wholesaler", any person who sells or |
distributes
new or used motor vehicles to motor vehicle dealers |
or who maintains
distributor representatives within the State.
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(h) "Motor vehicle dealer", any person who, in the ordinary |
course of
business, is engaged in the business of selling new |
or used motor vehicles
to consumers or other end users.
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(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
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characteristic, and in which there is a community of interest |
in the
marketing of motor vehicles or services related thereto |
at wholesale,
retail, leasing or otherwise.
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(j) "Franchiser", a manufacturer, distributor or |
wholesaler who grants
a franchise to a motor vehicle dealer.
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(k) "Franchisee", a motor vehicle dealer to whom a |
franchise is offered
or granted.
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(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
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franchise related thereto; and any option, subscription or |
other contract
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
shall be |
deemed a sale of such motor vehicle or franchise.
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(m) "Fraud", shall include, in addition to its normal legal |
connotation,
the following: a misrepresentation in any manner, |
whether intentionally
false or due to reckless disregard for |
truth or falsity, of a material fact;
a promise or |
representation
not made honestly and in good faith; and an |
intentional failure to disclose
a material fact.
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(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
of the |
activities of each such entity.
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(o) "New motor vehicle", a motor vehicle which has not been |
previously
sold to any person except a distributor or |
wholesaler or motor vehicle dealer
for resale.
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(p) "Market Area", the franchisee's area of primary |
responsibility as
defined in its franchise.
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(q) "Relevant Market Area", the area within a radius of 10 |
miles from
the principal location of a franchise or dealership |
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 |
franchise or dealership is in a county having a
population of |
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 |
location of
said franchise or dealership; or the area of |
responsibility as defined in
the franchise agreement, |
whichever is greater.
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(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.
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(s) "Factory repurchase vehicle" means a motor vehicle of |
the current
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
defective new |
motor vehicles, and offered for sale and resold by the
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manufacturer directly or at a factory authorized or sponsored |
auction.
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(t) "Board" means the Motor Vehicle Review Board
created |
under this Act.
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(u) "Secretary of State" means the Secretary of State of |
Illinois.
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(v) "Good cause" means facts establishing commercial |
reasonableness in
lawful or privileged competition and |
business practices as defined at common
law.
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