State of Illinois
92nd General Assembly
Legislation

   [ Search ]   [ PDF text ]   [ Legislation ]   
[ Home ]   [ Back ]   [ Bottom ]


[ Engrossed ][ Enrolled ]


92_SB1851

 
                                               LRB9215626DHmg

 1        AN ACT in relation to business transactions.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The Motor Vehicle Franchise Act is amended by
 5    changing Section 5 as follows:

 6        (815 ILCS 710/5) (from Ch. 121 1/2, par. 755)
 7        Sec. 5.  Delivery  and  preparation  obligations;  damage
 8    disclosures.   Every manufacturer shall specify in writing to
 9    the dealer the delivery and preparation  obligations  of  its
10    motor vehicle dealers prior to delivery of new motor vehicles
11    to  retail  buyers.   A  copy of the delivery and preparation
12    obligations of its motor vehicle dealers and  a  schedule  of
13    the  compensation to be paid to its motor vehicle dealers for
14    the work and services they shall be required  to  perform  in
15    connection  with  such  delivery  and preparation obligations
16    shall  be  presented  to  the  dealer  and  the   obligations
17    specified  therein  shall   constitute any such dealer's only
18    predelivery obligations  as  between  such  dealer  and  such
19    manufacturer.  The compensation as set forth on said schedule
20    shall be reasonable.
21        A  manufacturer, factory branch, distributor, distributor
22    branch,  or  wholesaler  of  new  motor  vehicles   sold   or
23    transferred  to  a  motor  vehicle dealer in this State shall
24    disclose to the motor  vehicle  dealer,  in  writing,  before
25    delivery  of  a  vehicle  to  the  motor  vehicle  dealer all
26    in-transit, post-manufacture, or other damage to the  vehicle
27    that  was  sustained  or incurred by the motor vehicle at any
28    time after the manufacturing process was complete but  before
29    delivery  of  the  vehicle to the dealer.  This disclosure is
30    not required when the cost to repair does not  exceed  6%  of
31    the  manufacturer's  suggested  retail  price  of the vehicle
 
                            -2-                LRB9215626DHmg
 1    based upon the dealer's actual retail repair cost,  including
 2    labor,  parts,  and  materials  if  the damage is repaired or
 3    retail estimate to repair if the vehicle is not repaired. New
 4    motor vehicles that are repaired may be sold as new and shall
 5    be fully warranted by the manufacturer.
 6        For purposes of this Section,  "manufacturer's  suggested
 7    retail price" means the retail price of the new motor vehicle
 8    suggested  by the manufacturer including the retail delivered
 9    price suggested  by  the  manufacturer  for  each  separately
10    priced  accessory  or  item  of optional equipment physically
11    attached to the new motor vehicle at the time of delivery.
12        Whenever a new  motor  vehicle  sustains  or  incurs  any
13    in-transit,  post-manufacture,  or  other  damage at any time
14    after the  manufacturing  process  is  complete,  but  before
15    delivery  of  the  vehicle  to  the motor vehicle dealer, the
16    dealer may within a reasonable period of time after  delivery
17    of  the  motor vehicle notify the manufacturer or distributor
18    of that damage and either:
19             (1)  revoke acceptance of the delivery  of  the  new
20        motor  vehicle  whereby  ownership  of  the motor vehicle
21        shall revert to the manufacturer, and  the  dealer  shall
22        incur  no  obligations,  financial, or otherwise for that
23        new motor vehicle; or
24             (2)  request authorization from the manufacturer  to
25        repair  the damage sustained or incurred by the new motor
26        vehicle.   If  the  manufacturer  refuses  or  fails   to
27        authorize  repair  of  the  damage  within  3 days of the
28        request  by  the  dealer,  the  dealer  may  then  revoke
29        acceptance of the delivery  of  the  new  motor  vehicle;
30        ownership  shall  revert  to  the  manufacturer;  and the
31        dealer  shall  incur  no   obligations,   financial,   or
32        otherwise for that new motor vehicle.
33        A  motor  vehicle  dealer shall disclose to the purchaser
34    before delivery of the new motor  vehicle,  in  writing,  any
 
                            -3-                LRB9215626DHmg
 1    damage  that the dealer has actual knowledge was sustained or
 2    incurred  by  the  motor  vehicle  at  any  time  after   the
 3    manufacturing process was complete but before delivery of the
 4    vehicle  to  the  purchaser.  This disclosure is not required
 5    when  the  cost  to  repair  does  not  exceed  6%   of   the
 6    manufacturer's  suggested  retail  price of the vehicle based
 7    upon the dealer's actual retail repair cost, including labor,
 8    parts, and materials if the damage is repaired or the  retail
 9    estimate to repair the vehicle if it is not repaired.
10        Damage  to  glass,  tires,  bumpers, video and telephonic
11    components,  and  in-dash  audio  equipment  is  not  to   be
12    considered in determining the cost of repair if replaced with
13    the manufacturer's original equipment.
14        If  disclosure  is  not  required  under  this Section, a
15    purchaser may not revoke or rescind a sales contract  due  to
16    the  fact  the  new  vehicle  was damaged and repaired before
17    completion of the sale. In that  circumstance,  nondisclosure
18    does not constitute a misrepresentation or omission of fact.
19        A  manufacturer, factory branch, distributor, distributor
20    branch,  or  wholesaler  of   new   motor   vehicles   shall,
21    notwithstanding   the   terms  of  any  franchise  agreement,
22    indemnify  and  hold  harmless  the  motor   vehicle   dealer
23    obtaining  a new motor vehicle from the manufacturer, factory
24    branch, distributor, distributor branch, or  wholesaler  from
25    and  against  any  liability, including reasonable attorney's
26    fees, expert witness fees, court costs,  and  other  expenses
27    incurred  in  the  litigation, so long as such fees and costs
28    are  reasonable,  that  the  motor  vehicle  dealer  may   be
29    subjected  to  by  the  purchaser  of  the vehicle because of
30    damage to the motor vehicle that occurred before delivery  of
31    the  vehicle  to  the  dealer  and  that was not disclosed in
32    writing to the dealer prior to delivery of the vehicle.  This
33    indemnity obligation of  the  manufacturer,  factory  branch,
34    distributor,   distributor   branch,  or  wholesaler  applies
 
                            -4-                LRB9215626DHmg
 1    regardless of whether the damage falls below the 6% threshold
 2    under this Section.  The failure of the manufacturer, factory
 3    branch, distributor, distributor  branch,  or  wholesaler  to
 4    indemnify  and  hold  harmless  the motor vehicle dealer is a
 5    violation of this Section.
 6    (Source: P.A. 91-485, eff. 1-1-00.)

[ Top ]