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Trans 138.04 Trans 138.04 Records kept. This section establishes the minimum books and records required to be kept and maintained at the licensed business premises by motor vehicle dealers and used motor vehicle wholesalers under ss. 218.0116 (3) and (5), and 342.16 (2), Stats., and the required retention periods for those records.
Trans 138.04(1) (1)Dealer required records. Motor vehicle dealers shall maintain, at a minimum, the following books and records:
Trans 138.04(1)(a) (a) Ownership records. As evidence of ownership, title for each used vehicle owned and offered for sale and manufacturer's statement of origin, or MSO, for each new vehicle owned and offered for sale. If a manufacturer or lending institution is holding the title or MSO to ensure payment at the time of sale, the dealer shall have for each such vehicle either a factory invoice, a completed dealer reassignment form, or a purchase contract evidencing trade-in or purchase. If the used vehicle is a manufacturer's buy-back under s. 218.0171, Stats., and the manufacturer holds title to the vehicle, the dealer may have in its possession a copy of the title.
Trans 138.04 Note Note: Section 218.0171, Stats., is commonly known as the lemon law.
Trans 138.04(1)(b) (b) Consignment sale documents.
Trans 138.04(1)(b)1.1. Written consignment agreement between owner and dealer for each vehicle not owned by the dealer and offered for sale by the dealer. Consignments between motor vehicle dealers are prohibited. Nor may wholesalers consign vehicles to motor vehicle dealers. Each consignment agreement shall contain:
Trans 138.04(1)(b)1.a. a. Date of consignment;
Trans 138.04(1)(b)1.b. b. Name of consignor and consignee;
Trans 138.04(1)(b)1.c. c. Description of vehicle including year, make and identification number, a description of the prior use of the vehicle and an odometer disclosure statement as specified in s. Trans 154.08 (1). The odometer disclosure statement shall be separate from the rest of the consignment agreement;
Trans 138.04(1)(b)1.d. d. Terms of agreement including duration of agreement, agreed upon minimum selling price at which the dealer is authorized to sell the vehicle for the consignee, the agreed disposition of any amount received for the vehicle above the minimum sales price, and the amount of the dealer's sales commission;
Trans 138.04(1)(b)1.e. e. A statement by the owner that either the vehicle is clear of any liens, or identifying the lienholder and stating the amount of any outstanding lien balance;
Trans 138.04(1)(b)1.f. f. Signatures by the vehicle owner and selling dealer; and
Trans 138.04(1)(b)1.g. g. An agreement between the vehicle's owner and the dealer providing that the dealer will hold the title certificate or a copy of both sides of the original title certificate for inspection by potential purchasers during the period of consignment, and that the title reassignment by the owner portion of the original title certificate will not be signed until the vehicle is actually sold. The agreement shall also provide that if the vehicle is not sold during the duration of the consignment, the dealer will promptly return the title certificate to the owner along with the vehicle.
Trans 138.04(1)(b)2. 2. Copies of any documents required to be created under s. Trans 139.08.
Trans 138.04(1)(c) (c) Vehicle condition disclosures. Vehicle general condition disclosure statements, as required by s. Trans 139.04 (4).
Trans 138.04(1)(d) (d) Odometer disclosure. Odometer disclosure statement from prior owner and odometer disclosure statement to subsequent purchaser, as required by s. Trans 139.04 (7).
Trans 138.04(1)(e) (e) Contracts. Original or copy of motor vehicle purchase contracts, as required by s. Trans 139.05, purchase orders and invoices. Copy of MV1 or MV11, Wisconsin title, registration or license plate application forms, completed for each vehicle purchaser as additional evidence of sale, and information regarding collection of sales tax and Wisconsin title and registration fees, when applicable. If the contract supersedes any prior offer or contract between the parties, copies of the superseded contract as required by s. Trans 139.05 (1) (a) 2.
Trans 138.04(1)(f) (f) Dealer record book.
Trans 138.04(1)(f)1.1. The following information shall be kept on every used vehicle, including executive and demonstrator vehicles, bought, sold, exchanged or consigned:
Trans 138.04(1)(f)1.a. a. Date of acquisition of the vehicle.
Trans 138.04(1)(f)1.b. b. Name and address of the person from whom the vehicle was acquired.
Trans 138.04(1)(f)1.c. c. The year, make and vehicle identification number, or VIN, of the vehicle.
Trans 138.04(1)(f)1.d. d. The date of the disposition of the vehicle.
Trans 138.04(1)(f)1.e. e. The name and address of the person to whom any vehicle was disposed.
Trans 138.04(1)(f)2. 2. Persons requiring a license who do not maintain their records in an electronic data processing record keeping system shall maintain the information required in subd. 1. in a permanently bound book containing consecutively pre-numbered pages with horizontal line ruling. Initial purchase entries shall be made immediately as each vehicle is acquired and sales information entered on the same line at subsequent time of sale. All entries shall be consecutively entered in ink and be legible. No blank horizontal lines shall be allowed. Vertical dividing lines shall be provided, and may be manually drawn, to divide the following information as shown: - See PDF for table PDF
Trans 138.04(1)(f)3. 3. Persons requiring a license who maintain their records in an electronic data processing record keeping system shall maintain the information required in subd. 1. in compliance with the following requirements:
Trans 138.04(1)(f)3.a. a. One record shall contain all of the information specified in subd. 1.
Trans 138.04(1)(f)3.b. b. Initial purchase entries shall be made immediately as acquired, and sales information shall be completed on the same record at the time of sale.
Trans 138.04(1)(f)3.c. c. The information shall be accessible for inspection and shall be retrievable electronically by the date acquired, name of person from whom the vehicle was acquired, VIN, date sold, and name of person to whom the vehicle was disposed.
Trans 138.04(1)(f)3.d. d. All records shall be retrievable during the inspection and a printer shall be kept on site to provide hard copy if requested. Hard copy shall include all information in the same format as specified in par. (f) 2. Horizontal and vertical lines are not required.
Trans 138.04(1)(f)3.e. e. There is an employee of the person requiring a license available to retrieve the records during the hours of operation of the business.
Trans 138.04(1)(h) (h) Electronic record keeping. Persons requiring a license who maintain their used vehicle records as specified in par. (f) in an electronic data processing record keeping system can satisfy the record retention requirement in sub. (3) with hard copy of their records when memory limitations of the electronic system prohibit electronic storage for the specified period. Hard copy shall meet the following requirements:
Trans 138.04(1)(h)1. 1. Hard copy shall include only those records of vehicles that have been disposed of. Incomplete records of vehicles acquired and still in inventory must be maintained on the electronic system until disposed of and the record is completed.
Trans 138.04(1)(h)2. 2. Hard copy shall include all information in the same format as specified in par. (f) 2. Horizontal and vertical line ruling shall not be required.
Trans 138.04(1)(h)3. 3. Hard copy shall be printed in the order of the date acquired and each report shall contain at least 12 consecutive months of vehicle acquisitions.
Trans 138.04(1)(h)4. 4. Hard copy shall contain system generated page numbers and the current date on every page.
Trans 138.04(2) (2)Wholesaler required records. Motor vehicle wholesalers (used vehicles) shall maintain those books and records included in sub. (1) (a), (d) and (f) for the period specified under sub. (3). The records and books to be maintained are limited to used vehicle record books, invoices, dealer reassignment forms, regular and conforming power of attorney forms, prior owner odometer disclosure statements and wholesaler's subsequent odometer disclosure statements.
Trans 138.04(3) (3)Retention requirements. The used vehicle information described in sub. (1) (f) shall be maintained for a period of 5 years, as required by s. 342.16, Stats., and all other required records shall be maintained for a period of 5 years from the date of sale, including copies of factory invoices, dealer reassignment forms, consignment agreements, purchase contracts, MV1 or MV11 Wisconsin title, registration or license plate applications, Wisconsin buyers guides, regular and conforming power of attorney forms, prior owner odometer disclosure statements, dealer's subsequent odometer disclosure statements, lessor's notices to lessees relating to odometer disclosure required at end of lease, and lessee's odometer disclosure statement completed at end of lease. The records shall be kept in the place of business during business hours and shall be open to inspection and copying by a representative of the department during reasonable business hours. Multi-location dealerships may keep records at a single location. If the location is out of state, the dealerships shall reimburse the department for actual and necessary expenses, plus wages pursuant to the appropriate state compensation plan or applicable labor agreement for examining the documents at that location. The actual and necessary expenses charged include the following:
Trans 138.04(3)(a) (a) Travel expenses.
Trans 138.04(3)(b) (b) Meal expenses.
Trans 138.04(3)(c) (c) Lodging expenses.
Trans 138.04(3)(d) (d) Telephone expenses.
Trans 138.04(3)(e) (e) Copying and data processing expenses.
Trans 138.04 Note Note: The current Wisconsin Title and License Plate Application forms used by dealers is form MV-11, which may be purchased from motor vehicle dealer form supply companies. MV-1 is used by the general public for this purpose and is available from motor vehicle service centers or on the Internet at http:\\www.dot.state.wi.us
Trans 138.04 History History: Cr. Register, May, 1966, No. 125, eff. 6-1-66; r. and recr. Register, April, 1977, No. 256, eff. 5-1-77; renum. from MVD 13.02 and am., Register, July, 1981, No. 307, eff. 8-1-81; am. (1) (c) to (e), Register, December, 1982, No. 324, eff. 1-1-83; am. (intro.) (1) (b) 5. and 6., r. (1) (b) r. and (2), renum. (3) to be (2), Register, October, 1984, No. 346, eff. 11-1-84; am. (1) (b), cr. (1) (b) 7., Register, June, 1991, No. 426, eff. 7-1-91; am. (1) (b) 3., (d), (g) and (2), renum. (1) (f) to be (1) (f) 2., cr. (1) (f) 1. and 3. and (h), Register, January, 1996, No. 481, eff. 2-1-96; CR 99-135: am. (intro.), (1) (intro.), (a), (b) (intro.), (e) and (2), renum. (1) (b) 1. to 7. and (g) to be (1) (b) 1. a. to g. and (3) and am. (1) (b) 1. g. and (3), cr. (1) (b) 2., Register February 2004 No. 578, eff. 3-1-04; correction in (1) (h) (intro.) made under s. 13.93 (2m) (b) 7., Stats., Register February 2004 No. 578; CR 08-029: am. (1) (a) and (3) Register August 2008 No. 632, eff. 9-1-08.
Trans 138.05 Trans 138.05 Auction dealers. Motor vehicle wholesale auction dealers shall:
Trans 138.05(1) (1) For each vehicle offered for sale, either require the consigning dealer deposit clear title or furnish title insurance at time of sale.
Trans 138.05(2) (2) Prominently display the selling dealer's name and address, and state in which the vehicle is titled, on each vehicle offered for sale, prior to each vehicle entering the auction sale building. Recommended methods are either affixing the information on the side window by grease pencil, or entering the information on a card plainly visible through either the windshield or side window.
Trans 138.05(3) (3) Retain a copy of a properly completed, signed wholesale auction dealer reassignment form for each vehicle sold with a nonconforming title as required under s. Trans 154.03 (3) (d) 3., and furnish 2 copies to the purchasing dealer and one copy to the selling dealer.
Trans 138.05(4) (4) For each motor vehicle sold at an auction sale, establish and maintain for 5 years those records as required under s. Trans 154.12 (3) as authorized under s. 342.157, Stats.
Trans 138.05(5) (5) Rescind the vehicle sale transaction if unable to furnish clear title to the purchasing dealer within 14 days following date of sale, if so requested by the purchasing dealer.
Trans 138.05(6) (6) Required records shall be kept in the place of business during business hours and shall be open to inspection and copying by a representative of the department during reasonable business hours.
Trans 138.05 History History: Cr. Register, April, 1977, No. 256, eff. 5-1-77; renum. from MVD 13.03 and am. Register, July, 1981, No. 307, eff. 8-1-81; am. (5), Register, June, 1991, No. 426, eff. 7-1-91; am. (3), r. and recr. (4), cr. (6), Register, January, 1996, No. 481, eff. 2-1-96; CR 99-135: am. (5) Register February 2004 No. 578, eff. 3-1-04.
Trans 138.06 Trans 138.06 Business signs. All motor vehicle dealers, motor vehicle wholesalers and motor vehicle wholesale auction dealers shall display the following signs:
Trans 138.06(1) (1) An exterior business sign in compliance with s. 100.18 (5), Stats. The sign shall state the name of the licensee, as shown on the department license and any other name under which the licensee does business as a motor vehicle dealer, wholesaler or auction dealer. The sign shall have lettering a minimum of 4 inches high, unless smaller dimensions are required in order to comply with a local zoning or sign ordinance.
Trans 138.06(2) (2) A sign posted on or adjacent to the entrance door describing the dealer's business hours.
Trans 138.06 History History: Cr. Register, May, 1966, No. 125, eff. 6-1-66; renum. from MVD 13.03 and am. Register, April, 1977, No. 256, eff. 5-1-77; renum. from MVD 13.04, Register, July, 1981, No. 307, eff. 8-1-81; am. Register, October, 1984, No. 346, eff. 11-1-84; am. (intro.), cr. (1), (2), Register, June, 1991, No. 426, eff. 7-1-91.
Trans 138.07 Trans 138.07 Lease agreement.
Trans 138.07(1)(1) Motor vehicle dealers and wholesalers shall furnish a copy of a signed lease agreement with the dealer license application whenever first applying for a license for a business location, unless the business property is owned by the dealership entity.
Trans 138.07(2) (2) Such lease agreement shall name the dealer applicant as lessee and shall contain the following items:
Trans 138.07(2)(a) (a) Names of parties to the agreement;
Trans 138.07(2)(b) (b) Consideration for lease agreement;
Trans 138.07(2)(c) (c) Description of business premises;
Trans 138.07(2)(d) (d) Terms of lease; and
Trans 138.07(2)(e) (e) Signatures of parties to the agreement.
Trans 138.07 History History: Cr. Register, July, 1981, No. 307, eff. 8-1-81; am. (1), Register, October, 1984, No. 346, eff. 11-1-84; am. (1), Register, June, 1991, No. 426, eff. 7-1-91.
Trans 138.08 Trans 138.08 Temporary sales locations. A motor vehicle dealer shall be permitted to display and sell vehicles at a temporary site other than its licensed place of business, providing that:
Trans 138.08(1) (1) Each dealer furnishes the department with written notification of the sale at least 10 days in advance.
Trans 138.08(2) (2) The duration of each sale may not exceed 10 business days.
Trans 138.08(3) (3) A dealer may not participate in more than 6 sales during each licensing (calendar) year.
Trans 138.08(4) (4) Each participating dealer shall furnish each consumer a written notice of the 3-day "cooling off" rights pursuant to s. 423.203, Stats., (The Wisconsin Consumer Act).
Trans 138.08(5)(a)(a) Permanent facilities required. The dealer maintains a permanent facility in this state in the manner required by s. Trans 138.03 (1) (a), except as provided in par. (b).
Trans 138.08 Note Note: Dealers without permanent facilities in the state may not conduct any sales in this state, including sales at temporary locations, except as provided in s. Trans 138.03 (6).
Trans 138.08(5)(b) (b) Motor home exemption. The department may exempt a dealer from the facility requirement in par. (a), but not from any other requirement of state law, if the dealer is selling motor homes at a rally or show sponsored by an established state, national or international motor home or camping association with a minimum membership of 100 members. An exemption under this paragraph may not be granted by the department more than once in any 4-year period. Any license issued by the department containing the exemption described in this paragraph shall be limited to one specific event and may not exceed 10 days duration. An exemption granted under this paragraph will not exempt a dealer from geographic sales restrictions contained in a dealer franchise agreement or other private contractual obligation.
Trans 138.08 Note Note: All off-premise sales in Wisconsin are limited to 10 days. s. Trans 138.08 (2), Stats. All other licensing and permit requirements of state law, including administrative rules issued by the department, apply to a motor home dealer granted an exemption under this paragraph. A Wisconsin dealer having franchise rights in the area in which the show is conducted is not prevented from enforcing those rights by the exemption in par. (b).
Trans 138.08 History History: Cr. Register, July, 1981, No. 307, eff. 8-1-81; am. (intro.), Register, October, 1984, No. 346, eff. 11-1-84; CR 99-135: am. (2) Register February 2004 No. 578, eff. 3-1-04; CR 06-135: cr. (5), Register August 2007 No. 620, eff. 9-1-07.
Trans 138.09 Trans 138.09 Effect of suspension, denial, revocation or voluntary surrender of license.
Trans 138.09(1) (1)Suspension.
Trans 138.09(1)(a)(a) No motor vehicle dealer may sell, offer to sell, or buy vehicles while his or her license is suspended.
Trans 138.09(1)(b) (b) A motor vehicle dealer also engaged in business activities on the same premises which do not require a license issued by the department, such as the sale of motor vehicle accessories or repair of motor vehicles, may continue to conduct this unlicensed business while his or her license is suspended. However, if such activities are conducted within the indoor facilities the dealer ordinarily uses to display motor vehicles offered for sale or lease with an option of purchase, then during the suspension all motor vehicles offered for sale or lease shall either be removed from those facilities or moved to a location in those facilities not accessible to consumers.
Trans 138.09(1)(c) (c) No licensed salesperson may be present at the dealership during the period of suspension, without the written permission of the department. The department may not grant permission unless the particular conditions of the salesperson's employment require his or her presence to perform duties unrelated to the activities regulated by the department under ch. 218, Stats.
Trans 138.09(2) (2)Denial.
Trans 138.09(2)(a)(a) Except as provided in par. (b), no person whose application for an initial motor vehicle dealer license has been denied may do business as a motor vehicle dealer.
Trans 138.09(2)(b) (b) If the applicant held a valid license in the previous license year, the applicant may continue to do business after his or her application has been denied, as authorized under s. 227.51 (2), Stats., provided the applicant meets all of the following requirements:
Trans 138.09(2)(b)1. 1. At the time of the license application, the applicant was a motor vehicle dealer whose motor vehicle dealer license had neither expired nor been revoked.
Trans 138.09(2)(b)2. 2. The applicant applied for an identical license for the same dealership and was denied.
Trans 138.09(2)(b)3. 3. The applicant requested a hearing to review the license denial within 30 days of the department's denial.
Trans 138.09(2)(b)4. 4. The applicant paid all fees required for issuance of dealer registration plates for the new licensing period.
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