Pub. 8 2018 Issue 3
9 Also remember, especially if a manu- facturer representative tries to suggest oth- erwise, that all of the foregoing provisions of the MVFA apply to the manufacturers and the dealership facility requirements. Section 3 of the MVFA states: “Any person [e.g., manufacturer] who engages directly or indirectly in purpose- ful contacts within this State in connec- tion 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 [MVFA] and shall be subject to the juris- diction of the courts of this State.” (815 ILCS 710/3). Moreover, the provisions of the MVFA apply to all manufacturer writ- ten or oral agreements with a dealer (including the manufacturers’ sales and service agreements, bulletins, policies, program guides, and the like). (815 ILCS 710/8). It’s important for dealers to keep these MVFAprovisions at handwhen consider- ing a facility remodel or newconstruction, or even when thinking about a dealership acquisition or sale. For example, service department upgrades are becoming more prevalent, with many manufacturers requiring dedicated service drives. An- other trend relates to the customer wait- ing areas that allow customers to see the service area and their vehicle while being serviced. And often, with a dealership ac- quisition comes the question of factoring in the cost of any facility upgrades as part of the buy/sell transaction. Image compli- ance requirements may not translate into an increased valuation. However, these MVFA provisions provide some protec- tion for dealers who determine to invest in their facilities and may allow them to realize a greater return on their initial fa- cility improvements investment. Julie A. Cardosi is Principal of the private firm, Law Office of Julie A. Cardosi, P.C., of Springfield, Illinois. She has practiced law for over 30 years, and represents the business interests of franchised motor vehicle dealers throughout Illinois. Formerly in-house staff legal counsel for the Illinois Automobile DealersAssociation,sheconcentratesherprivatepractice in the areas of dealership compliance matters, transfers of ownership, mergers and acquisitions, franchise law, commercialrealestatetransfers,andotherareasimpacting day-to-day dealership operations. She has also served as formerIllinoisAssistantAttorneyGeneralandDeputyChief of the Consumer Fraud Bureau of the Attorney General’s Office. The material discussed in this article is for general information only and is not intended as legal advice and should not be acted upon as such. Dealers should consult theirownprivatelegalcounselforapplicationtotheirspecific circumstances.Formoreinformation,Juliecanbereached at jcardosi@autocounsel.com, or at 217-787-9782, ext. 1.
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