Illinois Compiled Statutes
Chapter 815 - BUSINESS TRANSACTIONS
815 ILCS 710/ - Motor Vehicle Franchise Act.

(815 ILCS 710/1) (from Ch. 121 1/2, par. 751)
Sec. 1.
Short title.
This Act may be cited as
the
Motor Vehicle Franchise Act.

(Source: P.A. 86-1475.)
 
(815 ILCS 710/1.1) (from Ch. 121 1/2, par. 751.1)
Sec. 1.1. Declaration of purpose. The Legislature finds and declares that
the distribution and sale of vehicles within this State vitally affects
the general economy of the State and the public interest, welfare, and safety and
that in order to promote the public interest, welfare, and safety, and in the exercise
of its police power, it is necessary to regulate motor vehicle manufacturers,
distributors, wholesalers and factory or distributor branches or representatives,
and to regulate dealers of motor vehicles doing business in this State in
order to prevent frauds, impositions, discrimination, and other abuses upon its citizens,
to protect and preserve the investments and properties of the citizens of
this State, to foster healthy competition, and to provide adequate and sufficient service to consumers generally. The licensing and supervision of motor vehicle dealers is necessary for the protection of consumers and the sale of motor vehicles by unlicensed dealers shall be prohibited.
The Legislature further finds that the regulation of motor vehicle manufacturers, distributors, wholesalers, factory branches, distributor branches and representatives, and dealers promotes the distribution of motor vehicles to the public and provides a system for servicing vehicles and for complying with manufacturer warranties so that consumers can keep their motor vehicles properly functioning and safe. The sale and distribution of motor vehicles constitutes a continuing obligation of manufacturers, distributors, wholesalers, factory branches, distributor branches and representatives, and dealers to consumers, and the public has an interest in promoting the availability of post-sale mechanical and operational services.
(Source: P.A. 102-232, eff. 1-1-22.)
 
(815 ILCS 710/2) (from Ch. 121 1/2, par. 752)
Sec. 2. Definitions. As used in this Act, the following words shall,
unless the context otherwise requires, have the following meanings:
(a) "Motor vehicle", any motor driven vehicle required to be registered
under "The Illinois Vehicle Code". Beginning January 1, 2010, the term "motor vehicle" also includes any engine, transmission, or rear axle, regardless of whether it is attached to a vehicle chassis, that is manufactured for installation in any motor-driven vehicle with a gross vehicle weight rating of more than 16,000 pounds that is required to be registered under the Illinois Vehicle Code.
(b) "Manufacturer", any person engaged in the business of manufacturing
or assembling new and unused motor vehicles. "Manufacturer" includes a factory branch, distributor, and distributor branch.
(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.
(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.
(e) "Factory representative", a representative employed by a manufacturer
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
instructing motor 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 distributes
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 course of
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 in the
marketing of motor vehicles or services related thereto at wholesale,
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
or granted.
(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 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.
(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.
(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.
(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.
(p) "Market Area", the franchisee's area of primary responsibility as
defined in its franchise.
(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 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
mean the area within a radius of 15 miles from the principal location of
said franchise or dealership.
(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 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
manufacturer directly or at a factory authorized or sponsored auction.
(t) "Board" means the Motor Vehicle Review Board
created under this Act.
(u) "Secretary of State" means the Secretary of State of Illinois.
(v) "Good cause" means facts establishing commercial reasonableness in
lawful or privileged competition and business practices as defined at common
law.

(Source: P.A. 100-308, eff. 8-24-17.)
 
(815 ILCS 710/3) (from Ch. 121 1/2, par. 753)
Sec. 3.
Applicability of Act.
Any person who engages directly or indirectly in purposeful contacts within
this State in connection with the offering or advertising for sale or has
business dealings with respect to a motor vehicle within the State shall
be subject to the provisions of this Act and shall be subject to the jurisdiction
of the courts of this State.

(Source: P.A. 81-43.)
 
(815 ILCS 710/3.1)
Sec. 3.1.
Motor vehicle financing affiliate.
For purposes of this Act, a
franchisee and
a motor vehicle financing affiliate, as defined in Section 5-100 of the
Illinois Vehicle
Code, shall be treated as a single entity. That a franchisee arranges to
receive motor
vehicles through a motor vehicle financing affiliate shall not exempt a
manufacturer from
the provisions of this Act. A manufacturer shall not require, directly or
indirectly, a
motor vehicle dealer to contract with a motor vehicle financing affiliate in
order to
receive its motor vehicles nor shall a manufacturer prevent, directly or
indirectly, a motor
vehicle dealer from contracting with a motor vehicle financing affiliate in
order to
receive its motor vehicles. A manufacturer shall not use a motor vehicle
financing
affiliate as a means of avoiding the provisions and requirements of this Act.

(Source: P.A. 91-415, eff. 1-1-00.)
 
(815 ILCS 710/4) (from Ch. 121 1/2, par. 754)
Sec. 4. Unfair competition and practices.
(a) The unfair methods of competition and unfair and deceptive acts or
practices listed in this Section are hereby declared to be unlawful. In
construing the provisions of this Section, the courts may be guided by the
interpretations of the Federal Trade Commission Act (15 U.S.C. 45 et
seq.), as from time to time amended.
(b) It shall be deemed a violation for any manufacturer, factory branch,
factory representative, distributor or wholesaler, distributor branch,
distributor representative or motor vehicle dealer to engage in any action
with respect to a franchise which is arbitrary, in bad faith or
unconscionable and which causes damage to any of the parties or to the public.
(c) It shall be deemed a violation for a manufacturer, a distributor,
a wholesaler, a distributor branch or division, a factory branch or division,
or a wholesale branch or division, or officer, agent or other representative
thereof, to coerce, or attempt to coerce, any motor vehicle dealer:
(c-5) A manufacturer, a distributor, a wholesaler, a distributor branch or division, a factory branch or division, or a wholesale branch or division, or officer, agent, or other representative thereof may not:
It is not a violation of this subsection to offer an incentive program to motor vehicle dealers to encourage them to sell or offer to sell a secondary product approved, endorsed, sponsored, or offered by the manufacturer, distributor, wholesaler, distributor branch or division, factory branch or division, wholesale branch or division, or officer, agent, or other representative thereof, provided the program does not provide vehicle sales or service incentives.
It is not a violation of this subsection to prohibit a motor vehicle dealer from using secondary products for any repair work paid for under the terms of a warranty, recall, service contract, extended warranty, maintenance plan, or certified pre-owned vehicle program established or offered by the manufacturer, distributor, wholesaler, distributor branch or division, factory branch or division, or wholesale branch or division, or officer, agent, or other representative thereof.
As used in this subsection, "secondary product" means all products that are not new motor vehicles or original equipment manufacturer parts.
(d) 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:
(e) 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:
(f) It is deemed a violation for a manufacturer, a distributor, a wholesaler,
a distributor
branch or division, a factory branch or division, or a wholesale branch or
division, or
officer, agent, broker, shareholder, except a shareholder of 1% or less of the
outstanding
shares of any class of securities of a manufacturer, distributor, or wholesaler
which is a
publicly traded corporation, or other representative, directly or indirectly,
to own or
operate a place of business as a motor vehicle franchisee or motor vehicle
financing
affiliate, except that, this subsection shall not prohibit:
(g) Notwithstanding the terms, provisions, or conditions of any agreement or
waiver, it shall be deemed a violation for a manufacturer, a distributor,
a wholesaler, a distributor branch or division, a factory branch or division,
or a wholesale branch or division, or officer, agent or other representative
thereof, to directly or indirectly condition the awarding of a franchise to a
prospective new motor vehicle dealer, the addition of a line make or
franchise to an existing dealer, the renewal of a franchise of an existing
dealer, the approval of the relocation of an existing dealer's facility, or the
approval of the sale or transfer of the ownership of a franchise on the
willingness of a dealer, proposed new dealer, or owner of an interest in the
dealership facility to enter into a site control agreement or exclusive use
agreement unless separate and reasonable consideration was offered and accepted for that agreement.
For purposes of this subsection (g), the terms "site control
agreement" and "exclusive use agreement" include any agreement that has
the effect of either (i) requiring that the dealer establish or maintain
exclusive dealership facilities; or (ii) restricting the ability of the dealer, or
the ability of the dealer's lessor in the event the dealership facility is being
leased, to transfer, sell, lease, or change the use of the dealership premises,
whether by sublease, lease, collateral pledge of lease, or other similar agreement. "Site control agreement" and "exclusive use agreement" also include a manufacturer restricting the ability of a dealer to transfer, sell, or lease the dealership premises by right of first refusal to purchase or lease, option to purchase, or option to lease if the transfer, sale, or lease of the dealership premises is to a person who is an immediate family member of the dealer. For the purposes of this subsection (g), "immediate family member" means a spouse, parent, son, daughter, son-in-law, daughter-in-law, brother, and sister.
If a manufacturer exercises any right of first refusal to purchase or lease or option to purchase or lease with regard to a transfer, sale, or lease of the dealership premises to a person who is not an immediate family member of the dealer, then (1) within 60 days from the receipt of the completed application forms generally utilized by a manufacturer to conduct its review and a copy of all agreements regarding the proposed transfer, the manufacturer must notify the dealer of its intent to exercise the right of first refusal to purchase or lease or option to purchase or lease and (2) the exercise of the right of first refusal to purchase or lease or option to purchase or lease must result in the dealer receiving consideration, terms, and conditions that either are the same as or greater than that which they have contracted to receive in connection with the proposed transfer, sale, or lease of the dealership premises.
Any provision
contained in any agreement entered into on or after November 25, 2009 (the effective date of Public Act 96-824) that is inconsistent with the provisions of this subsection (g) shall be
voidable at the election of the affected dealer, prospective dealer, or owner
of an interest in the dealership facility.
(h) For purposes of this subsection:
"Successor manufacturer" means any motor vehicle manufacturer that, on or after January 1, 2009, acquires, succeeds to, or
assumes any part of the business of another manufacturer, referred to as the
"predecessor manufacturer", as the result of any of the following:
"Former Franchisee" means a new motor vehicle dealer that has entered into a franchise with a predecessor manufacturer and that has either:
For a period of 3 years from: (i) the date that a successor manufacturer acquires, succeeds to, or assumes any part of the business of a predecessor manufacturer; (ii) the last day that a former franchisee is authorized to remain in business as a franchised dealer with respect to a particular franchise under a termination agreement or deferred termination agreement with a predecessor or successor manufacturer; (iii) the last day that a former franchisee that was cancelled, terminated, nonrenewed, noncontinued, rejected, nonassumed, or otherwise ended by a predecessor or successor manufacturer is authorized to remain in business as a franchised dealer with respect to a particular franchise; or (iv) November 25, 2009 (the effective date of Public Act 96-824), whichever is latest, it shall be unlawful for such successor manufacturer to enter into a same line make franchise with any
person or to permit the relocation of any existing same line
make franchise, for a line make of the predecessor manufacturer that would be located or
relocated within the relevant market area of a former franchisee who owned or leased a
dealership facility in that relevant market area without first offering the additional or relocated
franchise to the former franchisee, or the designated successor of such former franchisee in the
event the former franchisee is deceased or a person with a disability, at no cost and without any requirements or
restrictions other than those imposed generally on the manufacturer's other franchisees at that
time, unless one of the following applies:
In the event that a successor manufacturer attempts to enter into a same line make franchise with any person or to permit the relocation of any existing line make franchise under this subsection (h) at a location that is within the relevant market area of 2 or more former franchisees, then the successor manufacturer may not offer it to any person other than one of those former franchisees unless the successor manufacturer can prove that at least one of the 3 exceptions in items (1), (2), and (3) of this subsection (h) applies to each of those former franchisees.
(Source: P.A. 102-433, eff. 1-1-22.)
 
(815 ILCS 710/5) (from Ch. 121 1/2, par. 755)
Sec. 5.
Delivery and preparation obligations; damage disclosures.
Every
manufacturer shall specify in writing to the dealer the delivery and
preparation obligations of its motor vehicle dealers prior to delivery of new
motor vehicles to retail buyers. A copy of the delivery and preparation
obligations of its motor vehicle dealers and a schedule of the compensation to
be paid to its motor vehicle dealers for the work and services they shall be
required to perform in connection with such delivery and preparation
obligations shall be presented to the dealer and the obligations specified
therein shall constitute any such dealer's only predelivery obligations as
between such dealer and such manufacturer. The compensation as set forth on
said schedule shall be reasonable.
A manufacturer, factory branch, distributor, distributor branch, or
wholesaler of new motor vehicles sold or transferred to a motor vehicle dealer
in this State shall disclose to the motor vehicle dealer, in writing, before
delivery of a vehicle to the motor vehicle dealer all in-transit,
post-manufacture, or other damage to the vehicle that was sustained or incurred
by the motor vehicle at any time after the manufacturing process was complete
but before delivery of the vehicle to the dealer. This disclosure is not
required when the cost to repair does not exceed 6% of the manufacturer's
suggested retail price of the vehicle based upon the dealer's actual retail
repair cost, including labor, parts, and materials if the damage is repaired or
retail estimate to repair if the vehicle is not repaired. New motor vehicles
that are repaired may be sold as new and shall be fully warranted by the
manufacturer.
For purposes of this Section, "manufacturer's suggested retail price" means
the retail price of the new motor vehicle suggested by the manufacturer
including the retail delivered price suggested by the manufacturer for each
separately priced accessory or item of optional equipment physically attached
to the new motor vehicle at the time of delivery.
Whenever a new motor vehicle sustains or incurs any in-transit,
post-manufacture, or other damage at any time after the manufacturing process
is complete, but before delivery of the vehicle to the motor vehicle dealer,
the dealer may within a reasonable period of time after delivery of the motor
vehicle notify the manufacturer or distributor of that damage and either:
A motor vehicle dealer shall disclose to the purchaser before delivery of
the new motor vehicle, in writing, any damage that the dealer has actual
knowledge was sustained or incurred by the motor vehicle at any time after the
manufacturing process was complete but before delivery of the vehicle to the
purchaser. This disclosure is not required when the cost to repair does not
exceed 6% of the manufacturer's suggested retail price of the vehicle based
upon the dealer's actual retail repair cost, including labor, parts, and
materials if the damage is repaired or the retail estimate to repair the
vehicle if it is not repaired.
Damage to glass, tires, bumpers,
video and telephonic components,
and in-dash audio equipment is not to
be considered in determining the cost of repair if replaced with the
manufacturer's original equipment.
If disclosure is not required under this Section, a purchaser may not revoke
or rescind a sales contract due to the fact the new vehicle was damaged and
repaired before completion of the sale. In that circumstance, nondisclosure
does not constitute a misrepresentation or omission of fact.
A manufacturer, factory branch, distributor, distributor branch, or
wholesaler of new motor vehicles shall, notwithstanding the terms of any
franchise agreement, indemnify and hold harmless the motor vehicle dealer
obtaining a new motor vehicle from the manufacturer, factory branch,
distributor, distributor branch, or wholesaler from and against any liability,
including reasonable attorney's fees,
expert witness fees, court costs, and other expenses incurred in the
litigation, so long as such fees and costs are reasonable,
that the motor vehicle dealer may be
subjected to by the purchaser of the vehicle because of damage to the motor
vehicle that occurred before delivery of the vehicle to the dealer and that was
not disclosed in writing to the dealer prior to delivery of the vehicle. This
indemnity obligation of the manufacturer, factory branch, distributor,
distributor branch, or wholesaler applies regardless of whether the damage
falls below the 6% threshold under this Section. The failure of the
manufacturer, factory branch, distributor, distributor branch, or wholesaler to
indemnify and hold harmless the motor vehicle dealer is a violation of this
Section.

(Source: P.A. 91-485, eff. 1-1-00; 92-758, eff. 1-1-03.)
 
(815 ILCS 710/6) (from Ch. 121 1/2, par. 756)
Sec. 6. Warranty agreements; claims; approval; payment; written
disapproval.
(a) Every manufacturer, distributor, wholesaler, distributor branch
or division, factory branch or division, or wholesale branch or division
shall properly fulfill any warranty agreement and adequately and fairly
compensate each of its motor vehicle dealers for labor and parts.
(b) Adequate and fair compensation requires the manufacturer to pay each dealer no less than the amount the retail customer pays for the same services with regard to rate and time.
Any time guide previously agreed to by the manufacturer and the dealer for extended warranty repairs may be used in lieu of actual time expended. In the event that a time guide has not been agreed to for warranty repairs, or said time guide does not define time for an applicable warranty repair, the manufacturer's time guide shall be used, multiplied by 1.5.
In no event shall such compensation fail to include full
compensation for diagnostic work, as well as repair service, labor, and
parts. Time allowances for the diagnosis and performance of warranty
work and service shall be no less than charged to retail customers
for the same work to be performed.
No warranty or factory compensated repairs shall be excluded from this requirement, including recalls or other voluntary stop-sell repairs required by the manufacturer. If a manufacturer is required to issue a recall, the dealer will be compensated for labor time as above stated.
Furthermore, manufacturers shall pay the dealer the same effective labor rate (using the 100 sequential repair orders chosen and submitted by the dealer less simple maintenance repair orders) that the dealer receives for customer-pay repairs. This requirement includes vehicle diagnostic times for all warranty repairs. Additionally, if a technician is required to communicate with a Technical Assistance Center/Engineering/or some external manufacturer source in order to provide a warranty repair, the manufacturer shall pay for the time from start of communications (including hold time) until the communication is complete.
The dealer may submit a request to the manufacturer for warranty labor rate increases a maximum of once per calendar year.
A claim made by a franchised motor vehicle dealer for compensation under this Section shall be either approved or disapproved within 30 days after the claim is submitted to the manufacturer in the manner and on the forms the manufacturer reasonably prescribes. An approved claim shall be paid within 30 days after its approval. If a claim is not specifically disapproved in writing or by electronic transmission within 30 days after the date on which the manufacturer receives it, the claim shall be considered to be approved and payment shall follow within 30 days.
In no event shall compensation to a motor
vehicle dealer for labor times and labor rates be less than the rates charged by such
dealer for like service to retail customers for nonwarranty service and
repairs. Additionally, the manufacturer shall reimburse the dealer for any parts provided in satisfaction of a warranty at the prevailing retail price charged by that dealer for the same parts when not provided in satisfaction of a warranty; provided that such dealer's prevailing retail price is not unreasonable when compared with that of the holders of motor vehicle franchises from the same manufacturer for identical parts in the geographic area in which the dealer is engaged in business.
There shall be no reduction in payments due to preestablished market norms or market averages.
Manufacturers are prohibited from establishing restrictions or limitations of customer repair frequency due to failure rate indexes or national failure averages.
No debit reduction or charge back of any item on a warranty repair order may be made absent a finding of fraud or illegal actions by the dealer.
A warranty claim timely made shall not be deemed invalid solely because unavailable parts cause additional use and mileage on the vehicle.
If a manufacturer imposes a recall or stop sale on any new vehicle in a dealer's inventory that prevents the sale of the vehicle, the manufacturer shall compensate the dealer for any interest and storage until the vehicle is repaired and made ready for sale.
Manufacturers are not permitted to impose any form of cost recovery fees or surcharges against a franchised auto dealership for payments made in accordance with this Section.
All claims, either original or resubmitted, made by motor vehicle
dealers hereunder and under Section 5 for such labor and parts shall be either
approved or disapproved within 30 days following their submission. All
approved claims shall be paid within 30 days following their approval. The
motor vehicle dealer who submits a claim which is disapproved shall be notified
in writing of the disapproval within the same period, and each such notice
shall state the specific grounds upon which the disapproval is based. The
motor vehicle dealer shall be permitted to correct and resubmit such
disapproved claims within 30 days of receipt of disapproval. Any claims not
specifically disapproved in writing within 30 days from their submission shall
be deemed approved and payment shall follow within 30 days. The manufacturer
or franchiser shall have the right to require reasonable documentation for
claims and to audit such claims within a one year period from the date the
claim was paid or credit issued by the manufacturer or franchiser, and to
charge back any false or unsubstantiated claims. The audit and charge back
provisions of this Section also apply to all other incentive and reimbursement
programs for a period of one year after the date the claim was paid or credit issued by the manufacturer or franchiser. However, the manufacturer retains the
right to charge back any fraudulent claim if the manufacturer establishes in
a court of competent jurisdiction in this State that the claim is fraudulent.
(c) The motor vehicle franchiser shall not, by agreement, by restrictions
upon reimbursement, or otherwise, restrict the nature and extent of services to
be rendered or parts to be provided so that such restriction prevents the motor
vehicle franchisee from satisfying the warranty by rendering services in a good
and workmanlike manner and providing parts which are required in accordance
with generally accepted standards. Any such restriction shall constitute a
prohibited practice.
(d) For the purposes of this Section, the "prevailing retail price
charged by that dealer for the same parts" means the price paid by
the motor vehicle franchisee for parts, including all shipping and other
charges, multiplied by the sum of 1.0 and the franchisee's average percentage
markup over the price paid by the motor vehicle franchisee for parts purchased
by the motor vehicle franchisee from the motor vehicle franchiser and sold at
retail. The motor vehicle franchisee may establish average percentage markup
under this Section by submitting to the motor vehicle franchiser 100 sequential
customer paid service repair orders or 90 days of customer paid service repair
orders, whichever is less, covering repairs made no more than 180 days before
the submission, and declaring what the average percentage markup is. The
average percentage markup so declared shall go into effect 30 days following
the declaration, subject to audit of the submitted repair orders by the motor
vehicle franchiser and adjustment of the average percentage markup based on
that audit. Any audit must be conducted within 30 days following the
declaration. Only retail sales not involving warranty repairs, parts covered
by subsection (e) of this Section, or parts supplied for routine vehicle
maintenance, shall be considered in calculating average percentage markup. No
motor vehicle franchiser shall require a motor vehicle franchisee to establish
average percentage markup by a methodology, or by requiring information, that
is unduly burdensome or time consuming to provide, including, but not limited
to, part by part or transaction by transaction calculations. A motor vehicle
franchisee shall not request a change in the average percentage markup more
than twice in one calendar year.
(e) If a motor vehicle franchiser supplies a part or parts for use in a
repair rendered under a warranty other than by sale of that part or parts to
the motor vehicle franchisee, the motor vehicle franchisee shall be entitled to
compensation equivalent to the motor vehicle franchisee's average percentage
markup on the part or parts, as if the part or parts had been sold to the motor
vehicle franchisee by the motor vehicle franchiser. The requirements of this
subsection (e) shall not apply to entire engine assemblies, propulsion engine assemblies, including electric vehicle batteries, and entire transmission assemblies. In the case of those assemblies, the motor vehicle franchiser shall reimburse the motor vehicle franchisee up to and including 30% of what the motor vehicle franchisee would have paid the motor vehicle franchiser for the assembly if the assembly had not been supplied by the franchiser other than by the sale of that assembly to the motor vehicle franchisee.
(f) The obligations imposed on motor vehicle franchisers by this Section
shall apply to any parent, subsidiary, affiliate, or agent of the motor vehicle
franchiser, any person under common ownership or control, any employee of the
motor vehicle franchiser, and any person holding 1% or more of the shares of
any class of securities or other ownership interest in the motor vehicle
franchiser, if a warranty or service or repair plan is issued by that person
instead of or in addition to one issued by the motor vehicle franchiser.
(g) (Blank).
(Source: P.A. 102-232, eff. 1-1-22; 102-669, eff. 11-16-21.)
 
(815 ILCS 710/7) (from Ch. 121 1/2, par. 757)
Sec. 7.
Unreasonable dealer or franchise restrictions.
It
shall be unlawful directly or indirectly to impose unreasonable restrictions
on the motor vehicle dealer or franchisee relative to transfer, sale, right
to renew, termination, discipline, noncompetition covenants, site-control
(whether by sublease, collateral pledge of lease, or otherwise), right of
first refusal to purchase, option to purchase, compliance with subjective
standards and assertion of legal or equitable rights.

(Source: P.A. 81-43.)
 
(815 ILCS 710/8) (from Ch. 121 1/2, par. 758)
Sec. 8.
Agreements applicable.
The
provisions of this Act shall apply to all written or oral agreements between
a manufacturer, wholesaler or distributor with a motor vehicle dealer including,
but not limited to, the franchise offering, the franchise agreement, sales
of goods, services or advertising, leases or mortgages of real or personal
property, promises to pay, security interests, pledges, insurance contracts,
advertising contracts, construction or installation contracts, servicing
contracts, and all other such agreements in which the manufacturer,
wholesaler or distributor has any direct or indirect interest.

(Source: P.A. 81-43.)
 
(815 ILCS 710/9) (from Ch. 121 1/2, par. 759)
Sec. 9. Renewals; transfers.
(a) Anything
to the contrary notwithstanding, it shall be unlawful for the manufacturer,
wholesaler, distributor or franchiser without good cause,
to fail to renew a franchise on terms then equally available to all its
motor vehicle dealers, or to terminate a franchise or restrict the transfer
of a franchise until the franchisee shall receive fair and
reasonable compensation for the value of the business and business premises.
(b) For the purposes of this Section 9, the term "reasonable compensation" includes, but is not limited to all of the following items:
This subsection (b) shall not apply to a non-renewal or termination that is implemented as a result of a sale of the assets or stock of the franchise.
(c) The payment under item (b)(1) is due in 12 equal, monthly installments, beginning 30 days after the franchise is terminated or nonrenewed. The payments under items (b)(2) through (b)(6) are due no later than 90 days after the franchise is terminated or nonrenewed. As a condition of payment under items (b)(2) through (b)(6), the motor vehicle dealer must comply with all reasonable requirements provided by the manufacturer, distributor, or wholesaler regarding the return of inventory.
If a manufacturer, distributor, or wholesaler does not reimburse the motor vehicle dealer for the amounts required under items (b)(2) through (b)(6) by the deadlines under this subsection (c), and the Board or, if agreed to under Section 12, the arbitrator, finds the manufacturer, distributor, or wholesaler in violation of this subsection, then the manufacturer, distributor, or wholesaler shall, in addition to any other amounts due, pay the motor vehicle dealer:
(Source: P.A. 96-11, eff. 5-22-09; 96-1000, eff. 7-2-10.)
 
(815 ILCS 710/9.5)
Sec. 9.5. Termination with good cause.
(a) Anything to the contrary notwithstanding, if a manufacturer, wholesaler, distributor, or franchiser, with good cause, (i) fails to renew a franchise on terms then equally available to all of its motor vehicle dealers, (ii) terminates a franchise, or (iii) restricts the transfer of a franchise, the manufacturer, wholesaler, distributor or franchiser shall pay to the franchisee all of the following, including, but not limited to:
(b) The payment under item (a)(1) is due in 12 equal, monthly installments, beginning 30 days after the franchise is terminated or nonrenewed. The payments under items (a)(2) through (a)(5) are due no later than 90 days after the franchise is terminated or nonrenewed. As a condition of payment under items (a)(2) through (a)(5) the motor vehicle dealer must comply with all reasonable requirements provided by the manufacturer, distributor, or wholesaler regarding the return of inventory.
If a manufacturer, distributor, or wholesaler does not reimburse the motor vehicle dealer for the amounts required under items (a)(2) through (a)(6) by the deadlines under this subsection (b), then the manufacturer, distributor, or wholesaler shall, in addition to any amounts due, pay the motor vehicle dealer:
(c) This Section does not apply to a termination or nonrenewal that is implemented as a result of the sale of the assets or stock of the franchise.

(Source: P.A. 96-11, eff. 5-22-09.)
 
(815 ILCS 710/10) (from Ch. 121 1/2, par. 760)
Sec. 10.
Free association.
Every
franchisee shall have the right of free association with other franchisees
for any lawful purpose.

(Source: P.A. 81-43.)
 
(815 ILCS 710/10.1) (from Ch. 121 1/2, par. 760.1)
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.
(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:
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
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
inventory of the motorcycle dealer.
(c) The provisions of this Section 10.1 are applicable to all new or
existing
motorcycle
franchisees and franchisers 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,
this Section shall be controlling.
(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
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,
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.

(Source: P.A. 100-863, eff. 8-14-18.)
 
(815 ILCS 710/11) (from Ch. 121 1/2, par. 761)
Sec. 11.
Refunds; discounts.
In connection with a sale of a motor vehicle
or vehicles to the State or to any political subdivision thereof, no manufacturer,
distributor or wholesaler shall offer any discounts, refunds or any other
similar type of inducement
to any dealer without making the same offer or offers available to all other
of its dealers within the relevant market area.

(Source: P.A. 81-43.)
 
(815 ILCS 710/12) (from Ch. 121 1/2, par. 762)
Sec. 12. Arbitration; administrative proceedings; civil actions;
determining good cause.
(a) The franchiser and franchisee may agree to submit a dispute
involving
Section 4, 5, 6, 7, 9, 10.1, or 11
to
arbitration. Any such proceeding shall be conducted under the provisions of
the Uniform Arbitration Act by a 3 member panel composed of one member
appointed by the franchisee and one member appointed by the franchiser who
together shall choose the third member.
An arbitration proceeding hereunder
for a remedy under paragraph (6) of subsection (d) or paragraph (6), (8),
(10) or (11) of subsection (e) of Section 4 of this Act
shall be commenced by written notice
to the franchiser by the objecting franchisee
within 30 days from the date the dealer received notice
to cancel, terminate, modify or not extend or renew an existing franchise
or selling agreement or refusal to honor succession to ownership or refusal
to honor a sale or transfer or to grant or enter into the additional
franchise
or selling agreement, or to relocate an existing motor vehicle dealer;
or within 60 days of the date the franchisee received notice in writing by
the
franchiser of its determination under any
provision of Section 4 (other than paragraph (6) of subsection (d) or
paragraph (6), (8), (10) or (11) of subsection (e) of Section 4), 5, 6, 7, 9,
10.1, or 11 of this Act; however, if notice of the provision under which the
determination has been made is not given by the franchiser, then the
proceeding shall be commenced as provided by Section 14 of this Act.
The franchiser and the franchisee shall appoint their respective arbitrators
and they shall select the third arbitrator within 14 days of receipt of
such notice by the franchiser. The arbitrators shall commence hearings
within 60 days after all the arbitrators have been appointed and a decision
shall be rendered within 30 days after completion of the hearing.
During the pendency of the arbitration, any party may apply to a court
of competent jurisdiction which shall have power to modify or stay the
effective date of a proposed additional franchise or selling
agreement, or the effective date of a proposed motor vehicle dealership
relocation or the effective date of a cancellation, termination or
modification or refusal to honor succession or refusal to allow a sale or
transfer or extend the expiration date of a franchise or selling
agreement pending a final determination of
the issues raised in the arbitration hearing upon such terms as the court
may determine. Any such modification or stay shall not be effective for
more than 60 days unless extended by the court for good cause or unless
the arbitration hearing is then in progress.
(b) If the franchiser and the franchisee have not agreed to submit a
dispute involving
Section 4, 5, 6, 7, 9, 10.1, or 11 of this Act to arbitration under
subsection (a), then a proceeding before
the Motor Vehicle Review Board as prescribed by subsection (c) or (d) of
Section 12 and Section 29 of this Act for a remedy other than damages under
paragraph (6) of subsection (d) or paragraph (6), (8), (10), or (11) of
subsection (e) of Section 4 of this Act shall be commenced upon receipt by
the Motor Vehicle Review Board of a timely notice of protest or within 60
days of the date the franchisee received notice in writing by the franchiser
of its determination under any provision of those Sections other than
paragraph (6) of subsection (d) or paragraph (6), (8), (10), or (11) of
subsection (e) of Section 4 of this Act; however, if
notice of the provision under which the determination has been made is not
given by the franchiser, then the proceeding shall be commenced as provided
by Section 14 of this Act.
During the pendency of a proceeding under this Section, a party
may apply to a court of competent jurisdiction that shall have power to modify
or stay the effective date of a proposed additional franchise or selling
agreement, or the effective date of a proposed motor vehicle
dealership relocation, or the effective date of a cancellation,
termination, or modification, or extend the expiration date of a
franchise or selling agreement or refusal to honor succession to
ownership or refusal to approve a sale or transfer pending a final
determination of the issues raised in the hearing upon such terms as
the court may determine. Any modification or stay shall not be
effective for more than 60 days unless extended by the court for good cause or
unless the hearing is then in progress.
(c) In proceedings under (a) or (b), when determining whether good cause
has been established for granting such proposed additional franchise or
selling agreement, or for relocating an existing motor vehicle dealership, the
arbitrators or Board shall consider all
relevant
circumstances in accordance with subsection (v) of Section 2 of this Act,
including but not limited to:
(d) In proceedings under subsection (a) or (b), when determining
whether good cause has been established for cancelling, terminating, refusing
to extend or renew, or changing or modifying the obligations of the motor
vehicle dealer as a condition to offering a renewal, replacement, or
succeeding franchise or selling agreement, the arbitrators or Board
shall consider all relevant circumstances in accordance with
subsection (v) of Section 2 of this Act, including but not
limited to:
(e) If the franchiser and the franchisee have not agreed to
submit a dispute to arbitration, and the dispute did not arise under paragraph
(6) of subsection (d) or paragraph (6),
(8), (10), or (11) of subsection (e) of Section 4 of this Act, then
a proceeding for a remedy other than damages may be
commenced by the objecting
franchisee in the circuit court of the county in which the objecting
franchisee has its principal place of business, within 60 days of the
date the franchisee received notice in writing by the franchiser of
its determination under any provision of this Act other than paragraph (6)
of subsection (d) or paragraph (6), (8), (10), or (11) of subsection (e) of
Section 4 of this Act; however, if notice of the provision under which the
determination has been made is not given by the franchiser, then the
proceeding shall be commenced as provided by Section 14 of this Act.
(f) The changes to this Section made by this amendatory Act of the
92nd General Assembly (i) apply only to causes of action accruing on or
after its effective date and (ii) are intended to provide only an additional
venue for dispute resolution without changing any substantive rights under this
Act.

(Source: P.A. 100-308, eff. 8-24-17.)
 
(815 ILCS 710/13) (from Ch. 121 1/2, par. 763)
Sec. 13.
Damages; equitable relief.
Any franchisee or motor vehicle dealer
who suffers any loss of money or property, real or personal, as a result of
the use or employment by a manufacturer, wholesaler, distributor, distributor
branch or division, factory branch or division, wholesale branch or division,
or any agent, servant or employee thereof, of an unfair method of competition
or an unfair or deceptive act or practice declared unlawful by this Act,
or any action in violation of this Act,
may bring an action for damages and equitable relief, including injunctive
relief, in the circuit court of the county in which the objecting franchisee
has its principal place of business or, if the parties have so agreed, in
arbitration. If the misconduct is willful or wanton, treble damages may be
awarded. A motor vehicle dealer, if it has not suffered any loss
of money or property, may obtain permanent equitable relief if it can be shown
that the unfair act or practice may have the effect of causing such loss
of money or property. Where the franchisee or dealer substantially
prevails the court or arbitration panel or Motor Vehicle Review Board
shall award attorney's fees and assess costs, including expert witness fees
and other expenses incurred by the dealer in the litigation, so long as such
fees and costs are reasonable, against the opposing
party. Moreover, for the purposes of the award of attorney's fees, expert
witness fees, and costs
whenever the franchisee or dealer is seeking injunctive or other relief, the
franchisee or dealer may be considered to have prevailed when a judgment is
entered in its favor, when a final administrative decision is entered in its
favor and affirmed, if subject to judicial review, when a consent order is
entered into, or when the manufacturer, distributor, wholesaler, distributor
branch or division, factory branch or division, wholesale branch
or division, or
any officer, agent or other representative thereof ceases the conduct, act or
practice which is alleged to be in violation of any Section of this Act.
The changes to this Section made by this amendatory Act of the
92nd General Assembly (i) apply only to causes of action accruing on or
after its effective date and (ii) are intended to provide only an additional
venue for dispute resolution without changing any substantive rights under this
Act.

(Source: P.A. 91-485, eff. 1-1-00; 91-533, eff. 8-13-99; 92-272, eff. 1-1-02.)
 
(815 ILCS 710/14) (from Ch. 121 1/2, par. 764)
Sec. 14.
Limitations.
Except as provided in Section 12, actions arising
out of any provision of this Act
shall be commenced within 4 years next after the cause of action
accrues; provided, however, that if a person liable hereunder conceals the
cause of action from the knowledge of the person entitled to bring it, the
period prior to the discovery of his cause of action by the person entitled
shall be excluded in determining the time limited for the commencement of
the action. If a cause of action accrues during the pendency of any civil,
criminal or administrative proceeding against a person brought by the United
States, or any of its agencies under the antitrust laws, the Federal Trade
Commission Act, or any other federal act, or the laws or to franchising,
such actions may be commenced within one year after the final disposition
of such civil, criminal or administrative proceeding.

(Source: P.A. 81-43.)
 
(815 ILCS 710/16)
Sec. 16.
Motor Vehicle Review Board; Appointment.
The Secretary of State
shall, within 6 months of the effective date of this Act, establish a Motor
Vehicle Review Board. The Motor Vehicle
Review Board shall be composed of 7 members appointed by the
Secretary of State. The members shall represent the public interest at
large and shall not have engaged in the sale, manufacture, or distribution of
motor vehicles at retail in this State.
Each member of the Board shall receive compensation as provided in the
regulations for performance of the duties of
the office, and in addition, shall be paid all travel and other
necessary expenses incurred while performing official duties. Terms of office
of the members shall be for 3 years, except that, of the members first
appointed to take office after the effective date of this amendatory Act of
1995, 2 shall be appointed for a 3-year term, and one shall be appointed for a
2-year term. Of the members first appointed under this amendatory Act of
1996, one shall be appointed to a 3-year term, and one shall be appointed to a
2-year term.
Of the members first appointed to take office after the effective date of
this amendatory Act of the 91st General Assembly, one shall be appointed to a
3-year term and one shall be appointed to a 2-year term. Thereafter, each
member shall be appointed for a
3-year term. As terms of appointment expire, members shall serve until
their respective successors are appointed and qualified. No more than 4
members of the Board may be of the same political party. A member who tenders a written
resignation shall serve only until the resignation is accepted by the
Chairperson. A member who fails to attend 3 consecutive Board meetings
without an excused absence shall no longer serve as a member. The Secretary
of State shall fill any vacancy by the appointment of a member for the
unexpired term of the member in the same manner as in the making of original
appointments. Annually, the Board shall organize by selecting a Chairperson
from one of the 7 members from the public at large.

(Source: P.A. 91-798, eff. 7-9-00.)
 
(815 ILCS 710/17)
Sec. 17.
Board; organization and meetings.
The Board shall adopt
regulations for the
holding and conducting of hearings concerning all matters within its powers,
shall keep a record of all meetings and transactions, and shall make other
provisions for the conduct of its business as it deems necessary. A majority
of the members of the Board shall constitute a quorum. The act of the
majority of the members of the Board present at a meeting at which a quorum is
present shall be the act of the Board. Regular meetings shall be held as
provided in the regulations, and special meetings may be called by the
Chairperson or upon the request of a majority of those Board members
appointed.

(Source: P.A. 89-145, eff. 7-14-95; 89-687, eff. 6-1-97.)
 
(815 ILCS 710/18)
Sec. 18.
Board; powers.
The Board shall have the following powers:
(a) To conduct hearings, by or through its duly authorized
administrative hearing officer, on protests filed under Sections 4,
5, 6, 7, 9, 10.1, 11,
and 12
of this Act.
(b) To make reasonable regulations that are necessary to carry
out and effect its official duties and such further rules as necessary relating
to the time, place, and manner of conducting hearings as provided for in this
Act.
(c) To advise the Secretary of State upon appointments.
(d) To advise the Secretary of State on legislation proposed
to amend this Act or any related Act.
The changes to this Section made by this amendatory Act of the
92nd General Assembly (i) apply only to causes of action accruing on or
after its effective date and (ii) are intended to provide only an additional
venue for dispute resolution without changing any substantive rights under this
Act.

(Source: P.A. 92-272, eff. 1-1-02.)
 
(815 ILCS 710/19)
Sec. 19.
Relationship between Board and Office of Secretary of State.
The
Motor Vehicle
Review Board shall be administered by the Secretary of State who is
vested with powers, duties, and jurisdiction of administering the provisions
of this Act. The Board shall maintain permanent records of its meetings,
hearings, and decisions at the Office of the Secretary of State.

(Source: P.A. 89-145, eff. 7-14-95.)
 
(815 ILCS 710/20)
Sec. 20.
Organization of administration.
The Secretary of State shall
organize the work of the administration of the portion of this Act delegated
to him or her in a manner as he or she may deem necessary to carry out the
provisions
of this Act.

(Source: P.A. 89-145, eff. 7-14-95.)
 
(815 ILCS 710/21)
Sec. 21.
Secretary of State to appoint subordinates.
The Secretary of
State shall appoint subordinate officers, clerks, investigators, and other
employees necessary to carry out the provisions of this Act. All
clerical, professional, and other agencies for the execution of the powers and
duties vested in the Board shall be in the Secretary of State.

(Source: P.A. 89-145, eff. 7-14-95.)
 
(815 ILCS 710/22)
Sec. 22.
Powers and duties of Secretary of State.
(a) The administration of this Act is vested in the Secretary of State
who is charged with the duty of observing, administering, and enforcing the
provisions of this Act.
(b) The Secretary may from time to time make, amend, and rescind
rules and regulations as may be necessary in the public interest to carry out
the provisions of this Act.

(Source: P.A. 89-145, eff. 7-14-95; 89-433, eff. 12-15-95.)
 
(815 ILCS 710/23)
Sec. 23.
Secretary of State to prescribe forms.
The Secretary of State
shall prescribe forms or provide suitable forms
requisite or deemed necessary to carry out the provisions of this Act and any
other laws pertaining to vehicles, the enforcement and administration of which
are vested in the Secretary of State.

(Source: P.A. 89-145, eff. 7-14-95.)
 
(815 ILCS 710/24)
Sec. 24.
Authority to administer oaths.
Officers and employees of the
Secretary of State designated by him or her are, for the purpose of
administering the
Motor Vehicle Review Board and any laws relating to the use and operation of
motor vehicles, authorized to administer oaths and acknowledge signatures, and
shall do so without fee.

(Source: P.A. 89-145, eff. 7-14-95.)
 
(815 ILCS 710/25)
Sec. 25.
Authority to certify copies of records.
The Secretary of
State is authorized to prepare under the seal of the Secretary of State
certified copies of any records of his or her office. Every certified copy
shall be admissible in a proceeding in court in the same manner as the
original.

(Source: P.A. 89-145, eff. 7-14-95.)
 
(815 ILCS 710/26)
Sec. 26.
Records of Secretary of State.
The Secretary of State may
destroy any records of his or her office relating to the administration of any
laws
relating to Motor Vehicle Franchise Act matters if the records have been
maintained on file for 4 years. The records may be destroyed prior to the
expiration of 4 years
with the approval of the State Records Commission.

(Source: P.A. 89-145, eff. 7-14-95.)
 
(815 ILCS 710/27)
Sec. 27.
Enforcement.
The Secretary of State may provide training and
education for members of his or her office in the administration and
enforcement
matters under this Act.

(Source: P.A. 89-145, eff. 7-14-95.)
 
(815 ILCS 710/28)
Sec. 28.
Injunction.
Whenever it shall appear to the Secretary of
State that a person is engaged or about to engage in acts or practices
that constitute or will constitute a violation of the provisions of this Act,
or of any rule or regulation prescribed under authority of this Act, the
Secretary
of State may in his or her discretion, through the Attorney General, apply for
an injunction without notice, and upon a proper showing, the circuit court
shall have power to enter a permanent or preliminary injunction, or a temporary
restraining order without bond, to enforce the provisions of this Act, in
addition to the other remedies provided in this Act. Either party may
appeal as in other civil cases.

(Source: P.A. 89-145, eff. 7-14-95.)
 
(815 ILCS 710/29)
Sec. 29.
Procedures for hearing on protest.
Upon receipt of a timely
notice of protest filed with the Motor Vehicle Review Board under Section 4,
5, 6, 7, 9, 10.1, 11, or 12 of this Act, the Motor
Vehicle Review Board shall enter an order fixing a
date (within 60 days of the date of the order), time, the place
of a hearing and send by certified mail, return receipt requested, a copy of
the order to the manufacturer and the objecting dealer or dealers. Subject to
Section 10-20 of the Illinois Administrative Procedure Act, the Board shall
designate a hearing officer who shall conduct the hearing. All administrative
hearing officers shall be attorneys licensed to practice law in this State.
At the time and place fixed in the Board's order, the Board or its duly
authorized agent, the hearing officer, shall proceed to hear the protest, and
all parties to the protest shall be afforded an opportunity to present in
person or by counsel, statements, testimony, evidence, and argument as may be
pertinent to the issues. The hearing officer may continue the hearing date by
agreement of the parties, or upon a finding of good cause, but in no event
shall the hearing be rescheduled more than 90 days after the Board's initial
order.
Upon any hearing, the Board or its duly authorized agent, the
hearing officer, may administer oaths to witnesses and issue subpoenas for the
attendance of witnesses or other persons and the production of relevant
documents, records, and other evidence and may require examination thereon.
For purposes of discovery, the Board or its designated hearing officer may,
if deemed appropriate and proper under the circumstances, authorize the parties
to engage in such discovery procedures as are provided for in civil actions in
Section 2-1003 of the Code of Civil Procedure. Discovery shall be completed no
later than 15 days prior to commencement of the proceeding or hearing.
Enforcement of discovery procedures shall be as provided in the regulations.
Subpoenas issued shall be served in the same manner as subpoenas
issued out of the circuit courts. The fees of subpoenaed witnesses under this
Act for attendance and travel shall be the same as fees of witnesses before
the circuit courts of this State, such fees to be paid when the witness is
excused from further attendance, provided the witness is subpoenaed at the
instance of the Board or an agent authorized by the Board; and payment of
fees shall be made and audited in the same manner as other expenses of
the Board. Whenever a subpoena is issued at the request of a party to a
proceeding, complainant, or respondent, as the case may be, the Board may
require that the cost of service of the subpoena and the fee of same shall be
borne by the party at whose instance the witness is summoned, and the Board
shall have power, in its discretion, to require a deposit to cover the cost of
service and witness fees and the payment of the legal witness fee and mileage
to the witness served with the subpoena.
In any protest before the Board, the Board or its designated hearing officer
may order a mandatory settlement conference. The failure of a party to appear,
to be prepared, or to have authority to settle the matter may result in any or
all of the following:
(a) The Board or its designated hearing officer may suspend all
proceedings before the Board in the matter until compliance.
(b) The Board or its designated hearing officer may dismiss the proceedings
or any part thereof before the Board with or without prejudice.
(c) The Board or its designated hearing officer may require all of the
Board's costs to be paid by the party at fault.
Any circuit court of this State, upon application of the Board, or an
officer or agent designated by the Board for the purpose of conducting any
hearing, may, in its discretion, compel the attendance of witnesses, the
production of books, papers, accounts, or documents, and giving of testimony
before the Board or before any officer or agent designated for the
purpose of conducting the hearing. Failure to obey the order may be
punished by the circuit court as contempt.
A party may conduct
cross-examination required for a full and fair disclosure of the facts.
Within 20 days of the date of the hearing, the hearing officer shall issue
his or her proposed decision to the Board and shall, by certified mail, return
receipt requested, serve the proposed decision upon the parties, with an
opportunity afforded to each party to file exceptions and present a brief to
the Board within 10 days of their receipt of the proposed decision. The
proposed decision shall contain a statement of the reasons for the decision and
each issue of fact or law necessary to the proposed decision. The Board shall
then issue its final order
which, if applicable, shall include the award of attorney's fees, expert
witness fees, and an assessment of costs, including other expenses incurred in
the litigation, if permitted under this Act, so long as such fees and costs are
reasonable.
In a hearing on a protest filed under paragraph (6) of subsection (d) or
paragraph (6), (8), (10), or (11) of Section 4 or Section 12 of this
Act, the
manufacturer shall have the burden
of proof to establish that there is good cause for the franchiser to: grant
or establish an additional franchise or relocate an existing franchise; cancel,
terminate, refuse to extend or renew a franchise or selling agreement; or
change or modify the obligations of the motor vehicle dealer as a condition to
offering a renewal, replacement, or succeeding franchise or selling agreement
or refuse to honor succession to ownership or refuse to approve a proposed
transfer or sale. The determination whether good cause exists shall be made
under Section 12 of this Act.
The Board shall record the testimony and
preserve a record of all proceedings at the hearing by proper means of
recordation. The notice required to
be given by the manufacturer and notice of protest by the dealer or other
party, the notice of hearing, and all other documents in the nature of
pleadings, motions, and rulings, all evidence, offers of proof, objections, and
rulings thereon, the transcript of testimony, the report of findings or
proposed decision of the hearing officer, and the orders of the Board shall
constitute the record of the proceedings. The Board shall furnish a
transcript of the record to any person interested in the hearing upon
payment of the actual cost thereof.
The changes to this Section made by this amendatory Act of the
92nd General Assembly (i) apply only to causes of action accruing on or
after its effective date
and (ii) are intended to provide only an additional venue for dispute
resolution without changing any substantive rights under this Act.

(Source: P.A. 91-485, eff. 1-1-00; 92-272, eff. 1-1-02.)
 
(815 ILCS 710/30)
Sec. 30.
Form; contents; service of Board's decision after hearing.

The decision of the Motor Vehicle Review Board on any matter heard under
Section 29 of this Act shall be in writing and shall contain findings of fact
and a determination of the issues presented. A copy of the Board's order shall
be served upon all parties to the action by the Board, either personally or by
certified mail. All expenses incurred by the Board in conducting the hearing
shall be paid by the parties to the hearing and shall be divided between or
among them equally, except as otherwise provided in Section 13 of this
Act.

(Source: P.A. 89-145, eff. 7-14-95.)
 
(815 ILCS 710/31)
Sec. 31.

Review under Administrative Review Law; appeal as in civil
cases.
Any person affected by a final administrative decision of the Board may
seek judicial review of the decision in the Circuit Court of Sangamon County
or in the Circuit Court of Cook County only under and in accordance with the
Administrative Review Law, if the person files, within 10 days of receipt of
service of a copy of the final decision sought to be reviewed, a written
notice with the Board of intent to seek review under such law. The
provisions of the Administrative Review Law and the rules adopted pursuant
thereto, shall apply to
and govern all proceedings for the judicial review of final administrative
decisions of the Board under this Act. The term "administrative decision" is
defined as in Section 3-101 of the Code of Civil Procedure.

(Source: P.A. 89-145, eff. 7-14-95.)
 
(815 ILCS 710/32)
Sec. 32.
Severability.
If any provision of this Act or the application
of any provision of this Act to any person or circumstance is held invalid, the
invalidity does not affect other provisions or applications of the Act that
can be given effect without the invalid provision or application, and for this
purpose the provisions of this Act are severable.

(Source: P.A. 89-145, eff. 7-14-95.)

Structure Illinois Compiled Statutes