(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:
(1) revoke acceptance of the delivery of the new |
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.)
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