Question: The Kawasaki Shop of Aurora Illinois dealer advised Kawasaki Motors

The Kawasaki Shop of Aurora, Illinois (dealer), advised Kawasaki Motors Corp. (manufacturer) that it intended to move its Kawasaki franchise from New York Street to Hill Avenue, which was in the same market area. The Hill Avenue location was also the site of a Honda franchise. The manufacturer's sales manager advised the dealer that he did not want the dealer to move in with Honda at the Hill Avenue site. In February, the dealer moved to the Hill Avenue location. Effective May 1, the manufacturer terminated the dealer's franchise. The dealer brought suit against the manufacturer under the state's Motor Vehicle Franchise Act, which made it unlawful to terminate franchises for site control (requiring that the dealer's site be used exclusively as a Kawasaki dealership). The manufacturer argued that it had a right to have its products sold by a dealer who was not affiliated with a competitor.
Decide. [Kawasaki Shop v. Kawasaki Motors Corp., 544 N.E.2d 457 (Ill. App.)]

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  • CreatedJune 06, 2014
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