Can a Contract Remain In Force After the Cancellation Period Has Expired ?

In General Motors Acceptance Corp. v. Johnson, 354 Ill. App. 3d 885, 822 N.E.2d 30, 290 Ill. Dec. 748 (2004), the issue was whether a consumer could avoid a contract and arbitration agreement based on a car dealership's failure to provide notice that she had three days to cancel the parties' contract, pursuant to section 2B of the Consumer Fraud Act (815 ILCS 505/2B (West 2002)). The Johnson court determined that the legislature did not specify that a contract entered into in violation of the Consumer Fraud Act was invalid, unenforceable, or void; "this option to ignore a violation and nevertheless enforce a noncompliant contract negates the conclusion that the contract would be automatically unenforceable if it violated the Act." Johnson, 354 Ill. App. 3d at 891. The Johnson court also found that a consumer could elect to waive the statute's requirements by specifically doing so or by failing to notify the seller that she wished to avoid the contract. Johnson, 354 Ill. App. 3d at 892. Therefore, after the cancellation period had expired, the contract would remain in force despite the violation. Johnson, 354 Ill App. 3d at 892.