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| Public Act 098-0424 | ||||
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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 10.1 as follows:
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(815 ILCS 710/10.1) (from Ch. 121 1/2, par. 760.1)
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Sec. 10.1.
(a) As used in this Section, "motorcycle" means | ||||
every motor
vehicle having a seat or saddle for the use of the | ||||
rider and designed to
travel with 3 or less wheels in contact | ||||
with the ground, excluding farm,
garden, and lawn equipment, | ||||
and including off-highway
vehicles.
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(b) It shall be deemed a violation for a manufacturer, a | ||||
distributor, a
wholesaler, a distributor branch or division, or | ||||
officer, agent or other
representative thereof:
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(1) To require a motorcycle franchisee to participate | ||||
in a retail
financing plan or retail leasing plan or to | ||||
participate in any retail
consumer insurance plan.
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(2) To own, to operate or to control any motorcycle | ||||
dealership in this
State for a period longer than 2 years.
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(3) Whenever any motorcycle dealer enters into a | ||||
franchise agreement,
evidenced by a contract, with a | ||||
wholesaler, manufacturer or distributor
wherein the | ||||
franchisee agrees to maintain an inventory and the contract | ||||
is
terminated by the wholesaler, manufacturer, | ||
distributor, or franchisee,
then the franchisee may | ||
require the repurchase of the inventory as provided
for in | ||
this Act. If the franchisee has any outstanding debts to | ||
the
wholesaler, manufacturer or distributor then the | ||
repurchase amount may be
credited to the franchisee's | ||
account.
The franchise agreement shall either expressly or | ||
by operation of law have as
part of its terms a security | ||
agreement whereby the wholesaler, manufacturer, or
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distributor agrees to and does grant a security interest to | ||
the motorcycle
dealer in the repurchased inventory to | ||
secure payment of the repurchase amount
to the dealer. The | ||
perfection, priority, and
other matters relating to the | ||
security interest shall be governed by Article 9
of the | ||
Uniform Commercial Code. The provisions of this Section | ||
shall not be
construed to affect in any way any security | ||
interest that any financial
institution, person, | ||
wholesaler, manufacturer, or distributor may have in the
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inventory of the motorcycle dealer.
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(4) To require a motorcycle dealer to utilize
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manufacturer approved floor fixtures for the display of any
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product that is not a product of the manufacturer. | ||
(5) To require a motorcycle dealer to purchase
lighting | ||
fixtures that are to be installed in the
dealership only | ||
from the manufacturer's approved vendors. | ||
(6) To require a motorcycle dealer to relocate to a
new | ||
or alternate facility. | ||
(c) The provisions of this Section 10.1 are applicable to | ||
all new or
existing
motorcycle
franchisees and franchisors and | ||
are in addition to the other rights and
remedies provided in | ||
this Act, and, in the case of a conflict with other
provisions | ||
contained in this Act, with respect to motorcycle franchises,
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this Section shall be controlling.
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(d) The filing of a timely protest by a motorcycle | ||
franchise before the
Motor Vehicle
Review Board as prescribed | ||
by Sections 12 and 29 of this Act, shall stay the
effective
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date of a proposed additional franchise or selling agreement, | ||
or the effective
date of a
proposed motorcycle dealership | ||
relocation, or the effective date of a
cancellation,
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termination or modification, or extend the expiration date of a | ||
franchise or
selling
agreement by refusal to honor succession | ||
to ownership or refusal to approve a
sale
or
transfer pending a | ||
final determination of the issues in the hearing.
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(Source: P.A. 91-142, eff. 7-16-99.)
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