DEALERSHIP LAW
Navigating legal complexities for dealerships and franchisees
Lavelle Law’s dealership group represents motor vehicle and other dealerships and franchisees on a variety of matters impacting their multi-faceted businesses. Our team of trusted lawyers is well-versed in helping dealers navigate the complexities of franchise relationships, business operations, and consumer disputes. We diligently stay up-to-date on hot-button issues and novel laws to help clients stay ahead of the curve and mitigate risk in this dynamic industry. At the end of the day, lawyers on the Lavelle Law dealership team use specialized knowledge and expertise to ensure that dealers are protected and taken care of.
Our Services
- Business Torts
- Contract Compliance
- Dealership Acquisitions
- Dealership and Franchise Litigation
- Dealership Business Establishment
- Dealership Buy/Sell Agreements
- Dealership Employment Matters
- Dealership Terminations
- Franchise Organization, Structuring, and Planning
- Licensing, Regulatory, and Advertising Compliance
- Resolution of Dealership and Franchise Consumer Issues
- Review and Negotiation of Dealership, Distribution, and Franchise Agreements
- Succession Planning
OUR DEALERSHIP LAW TEAM
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Lavelle Law News and Events
If enacted, the Junk Fee Ban Act would protect consumers from hidden fees and promote fair business practices in Illinois. While there has yet to be legislation in the proposed Junk Fee Ban Act that excludes dealerships, it will be important to look for future updates on this bill, as Illinois is quickly becoming a hub for vehicle innovation and automotive plant expansion.
Amendments to BIPA
SB 2929 became effective on August 2, 2024. Codified as 740 ILCS 14/10 and 14/20, this Act introduced two pivotal changes to BIPA that dealers should be aware of:
• Limiting Per-Scan Damages: The amendments clarify that a single violation under BIPA accrues per type of violation, rather than per scan. This significantly reduces the financial exposure for dealerships.
• Electronic Consent: The amendments formalize electronic signatures as a valid means of securing biometric consent, streamlining compliance processes for businesses.
In Illinois, consumer actions against new and used vehicle dealerships are often brought under the Illinois Consumer Fraud and Deceptive Business Practices Act (the “Act”) codified as 815 ILCS 505. Section 10a of the Act allows individuals to file a lawsuit if they suffer actual damages from unfair or deceptive acts or practices from a new or used vehicle dealership. Section 2 of the Act details the prohibitions against “unfair or deceptive acts or practices.” Many of these actions include but are not limited to:
Misrepresentation: Providing false or misleading information about a vehicle’s condition, history, or features.
Omission of Material Facts: Failing to disclose important information that could affect a consumer’s decision to purchase a vehicle.
Deceptive Advertising: Engaging in false advertising or using bait-and-switch tactics to lure customers.
Unfair Practices: Conduct considered unethical, oppressive, or causes substantial injury to consumers.
