218.0119 (3) Whenever a licensed dealer, distributor or manufacturer discontinues or disposes of his or her business, such person that dealer, distributor or manufacturer shall promptly report such that fact to the department of transportation and return the license and registration plates issued. Whenever a licensed dealer, distributor or manufacturer discontinues business due to license suspension or revocation, such person that dealer, distributor or manufacturer shall surrender the licenses and registration plates to the department of transportation for such the suspension or revocation period.
31,109 Section 109. 218.01 (2a) (d) of the statutes is renumbered 218.0119 (4) and amended to read:
218.0119 (4) Any dealer, distributor, manufacturer or transporter who fails to comply with the requirements of this subsection section may be fined not more than $200 or imprisoned for not more than 6 months or both.
31,110 Section 110. 218.01 (2c) of the statutes is renumbered 218.0121 and amended to read:
218.0121 Factory stores. A manufacturer, importer or distributor, or a subsidiary thereof of a manufacturer, importer or distributor, shall not own, operate or control a motor vehicle dealership in this state. This subsection section does not prohibit any of the following:
(1) The ownership and operation by a manufacturer, importer or distributor, or a subsidiary thereof of a manufacturer, importer or distributor, of a dealership for a temporary period, not to exceed one year, during the transition from one owner or operator to another.
(2) The ownership or control of a dealership by a manufacturer, importer or distributor, or a subsidiary thereof of a manufacturer, importer or distributor, if the dealership is being sold under a bona fide contract or purchase option to the operator of the dealership, or a contract exists under which the operator of the dealership can expect to acquire full ownership of or a controlling interest in the dealership, and after the transfer of ownership is completed the dealership will no longer be owned, operated or controlled by the manufacturer, importer or distributor, or a subsidiary thereof of the manufacturer, importer or distributor.
(3) The ownership, operation or control of a dealership by a manufacturer, importer or distributor, or subsidiary thereof of a manufacturer, importer or distributor, which does not meet the conditions under par. (a) or (b) sub. (1) or (2), if the division of hearings and appeals determines, after a hearing on the matter at the request of any party, that there is no prospective independent dealer available to own and operate the dealership in a manner consistent with the public interest and that meets the reasonable standard and uniformly applied qualifications of the manufacturer, importer or distributor.
31,111 Section 111. 218.01 (2d) of the statutes is renumbered 218.0122 and amended to read:
218.0122 Damages to delivered vehicles. (1) A manufacturer, importer or distributor shall disclose in writing to a motor vehicle dealer, at or before delivery to the dealer, any damage and repair to a new motor vehicle occurring after the manufacturing process is complete but before delivery to the dealer, if the cost of the repair exceeds 6% of the manufacturer's suggested retail price, as measured by retail repair costs. Replacement of glass, tires, bumpers, fenders, moldings, audio equipment, instrument panels, hoods and deck lids with identical manufacturer's original equipment is not considered damage and repair under this paragraph subsection. If a manufacturer, importer or distributor fails to make a disclosure of damage and repair under this paragraph subsection, it shall be liable to the dealer for any liability imposed on the dealer for a failure on the part of the dealer to disclose that damage and repair.
(2) If the cost of repairing damage to a new motor vehicle that occurs before delivery to the dealer's location exceeds 6% of the manufacturer's suggested retail price, as measured by retail repair costs, the dealer may reject or, if title has passed to the dealer, require the manufacturer, importer or distributor who delivered the vehicle to repurchase the vehicle within 10 business days after delivery, unless the damage occurred during shipment and the method of transportation, carrier or transporter of the motor vehicle was designated by the motor vehicle dealer. Upon repurchase, the manufacturer, importer or distributor shall be subrogated to all of the dealer's rights against the carrier or transporter of the motor vehicle regarding damage. The cost of repairing glass, tires, bumpers, moldings and audio equipment with identical manufacturer's original equipment shall not be included in determining the cost of repairing damage under this paragraph subsection.
(3) This subsection section does not apply to motorcycles that are delivered in a crated, disassembled condition to the dealer or the dealer's agent.
31,112 Section 112. 218.01 (2f) of the statutes is renumbered 218.0123.
31,113 Section 113. 218.01 (2g) of the statutes is renumbered 218.0124.
31,114 Section 114. 218.01 (2w) (title) of the statutes is renumbered 218.0125 (title).
31,115 Section 115. 218.01 (2w) (a) of the statutes is renumbered 218.0125 (1) and amended to read:
218.0125 (1) In this subsection section, "dealer cost" means the wholesale cost for a part as listed in the manufacturer's, importer's or distributor's current price schedules or, if the part is not so listed, the dealer's original invoice cost for the part.
31,116 Section 116. 218.01 (2w) (b) of the statutes is renumbered 218.0125 (2).
31,117 Section 117. 218.01 (2w) (c) of the statutes is renumbered 218.0125 (3) and amended to read:
218.0125 (3) To be eligible for compensation for parts under par. (b) sub. (2), a dealer shall notify the manufacturer, importer or distributor in writing of the amounts that the dealer charges its other retail service customers for parts and request that it be paid for parts in accordance with this subsection section. The notice may be limited to the dealer's average markup over dealer cost that the dealer charges its other retail service customers for parts used to perform similar work. The notice shall be served upon the manufacturer, importer or distributor not less than 30 days before the date on which the dealer requests that the manufacturer, importer or distributor begin paying the dealer for parts at the stated amounts. The manufacturer, importer or distributor shall pay the dealer, as provided in this subsection section, at the amounts stated in the dealer notice for parts used in work performed on and after the beginning date stated in the notice.
31,118 Section 118. 218.01 (2w) (d) of the statutes is renumbered 218.0125 (4).
31,119 Section 119. 218.01 (2w) (e) of the statutes is renumbered 218.0125 (5) and amended to read:
218.0125 (5) A manufacturer, importer or distributor who fails to compensate a dealer for parts at an amount not less than the amount the dealer charges its other retail service customers for parts used to perform similar work shall not be found to have violated this subsection section if the manufacturer, importer or distributor shows that the amount is not reasonably competitive to the amounts charged to retail service customers by other similarly situated franchised motor vehicle dealers in this state for the same parts when used by those dealers to perform similar work.
31,120 Section 120. 218.01 (2w) (f) of the statutes is renumbered 218.0125 (6) and amended to read:
218.0125 (6) If a manufacturer, importer or distributor furnishes a part to a dealer at no cost for use by the dealer in performing work for which the manufacturer, importer or distributor is required to compensate the dealer under this subsection section, the manufacturer, importer or distributor shall compensate the dealer for the part at an amount not less than the amount the dealer charges its other retail customers for parts when used to perform similar work less the wholesale cost for such the furnished part as listed in the manufacturer's current price schedules. A manufacturer, importer or distributor may pay the dealer a reasonable handling fee instead of the compensation otherwise required by this subsection section for special high-performance complete engine assemblies furnished to the dealer at no cost, provided that the manufacturer, importer or distributor excludes special high-performance complete engine assemblies in determining whether the amounts requested in the dealer's notice are consistent with the amounts that the dealer charges its other retail service customers for parts used by the dealer to perform similar work.
31,121 Section 121. 218.01 (2w) (g) of the statutes is renumbered 218.0125 (7) and amended to read:
218.0125 (7) A claim made by a franchised motor vehicle dealer for compensation under this subsection section shall be either approved or disapproved within 30 days after the claim is submitted to the manufacturer, importer or distributor in the manner and on the forms the manufacturer, importer or distributor reasonably prescribes. An approved claim shall be paid within 30 days after its approval; and, if. If a claim is not specifically disapproved in writing or by electronic transmission within 30 days after the date on which the manufacturer, importer or distributor receives it, the claim shall be considered to be approved and payment shall follow within 30 days. A manufacturer, importer or distributor retains the right to audit claims for a period of one year after the date on which the claim is paid and to charge back any amounts paid on claims that are false or unsubstantiated. If there is evidence of fraud, this paragraph subsection does not limit the right of the manufacturer to audit for longer periods and charge back for any fraudulent claim, subject to the limitations period under s. 893.93 (1) (b).
31,122 Section 122. 218.01 (2x) of the statutes is renumbered 218.0126 and amended to read:
218.0126 Promotional allowances. A claim made by a franchised motor vehicle dealer for promotional allowances or other incentive payments shall be either approved or disapproved within 30 days after the claim is submitted to the manufacturer, importer or distributor in the manner and on the forms the manufacturer, importer or distributor reasonably prescribes. An approved claim shall be paid within 30 days after its approval; and, if. If a claim is not specifically disapproved in writing or by electronic transmission within 30 days after the date on which the manufacturer, importer or distributor receives it, the claim shall be considered to be approved and payment shall follow within 30 days after approval. A manufacturer, importer or distributor retains the right to audit a claim for a period of 2 years after the date on which the claim is paid and to charge back any amounts paid on claims that are false or unsubstantiated. If there is evidence of fraud, this subsection section does not limit the right of the manufacturer to audit for longer periods and charge back for any fraudulent claim, subject to the limitations period under s. 893.93 (1) (b).
31,123 Section 123. 218.01 (3) (title) of the statutes is renumbered 218.0116 (title).
31,124 Section 124. 218.01 (3) (a) (intro.) of the statutes is renumbered 218.0116 (1) (intro.).
31,125 Section 125. 218.01 (3) (a) 1. of the statutes is renumbered 218.0116 (1) (a).
31,126 Section 126. 218.01 (3) (a) 2. of the statutes is renumbered 218.0116 (1) (am).
31,127 Section 127. 218.01 (3) (a) 3. of the statutes is renumbered 218.0116 (1) (b).
31,128 Section 128. 218.01 (3) (a) 4. of the statutes is renumbered 218.0116 (1) (bm) and amended to read:
218.0116 (1) (bm) Wilful failure to comply with any provision of this section ss. 218.0101 to 218.0163 or any rule or regulation promulgated by the licensor under this section ss. 218.0101 to 218.0163.
31,129 Section 129. 218.01 (3) (a) 5. of the statutes is renumbered 218.0116 (1) (c).
31,130 Section 130. 218.01 (3) (a) 6. of the statutes is renumbered 218.0116 (1) (cm).
31,131 Section 131. 218.01 (3) (a) 7. of the statutes is renumbered 218.0116 (1) (d).
31,132 Section 132. 218.01 (3) (a) 8. of the statutes is renumbered 218.0116 (1) (dm).
31,133 Section 133. 218.01 (3) (a) 9. of the statutes is renumbered 218.0116 (1) (e).
31,134 Section 134. 218.01 (3) (a) 10. and 11. of the statutes are renumbered 218.0116 (1) (em) and (f) and amended to read:
218.0116 (1) (em) Employment of fraudulent devices, methods or practices in connection with compliance with the statutes with respect to the retaking of goods under retail instalment contracts or consumer leases and the redemption and resale or subsequent lease of such the retaken goods.
(f) Having indulged engaged in any unconscionable practice relating to said the licensed business activity.
Note: Inserts specific references and preferred term. Section 218.01 (3) (a) which was contained in the original s. 218.01, created by Chapter 474 of the Laws of 1933, has never contained an antecedent to the "said business" in subd. 11.
31,135 Section 135. 218.01 (3) (a) 12. of the statutes is renumbered 218.0116 (1) (fm).
31,136 Section 136. 218.01 (3) (a) 13. of the statutes is renumbered 218.0116 (1) (g) and amended to read:
218.0116 (1) (g) Having sold a retail instalment contract or consumer lease to a sales finance company that is not licensed hereunder under ss. 218.0101 to 218.0163.
31,137 Section 137. 218.01 (3) (a) 14. of the statutes is renumbered 218.0116 (1) (gm).
31,138 Section 138. 218.01 (3) (a) 15. of the statutes is renumbered 218.0116 (1) (h) and amended to read:
218.0116 (1) (h) Being a manufacturer, importer or distributor who has coerced or attempted to coerce any motor vehicle dealer to order any commodity or service or to accept delivery of or pay for any commodity or service that the motor vehicle dealer has not ordered. This subdivision paragraph does not modify or prohibit reasonable requirements in a franchise agreement that require a dealer to market and service a representative line of new motor vehicles that the manufacturer, importer or distributor is publicly advertising.
31,139 Section 139. 218.01 (3) (a) 16. of the statutes is renumbered 218.0116 (1) (hm) and amended to read:
218.0116 (1) (hm) Being a manufacturer of motor vehicles, factory branch, distributor, field representative, officer, agent or any representative whatsoever of such a motor vehicle manufacturer or factory branch, who has attempted to induce or coerce, or has induced or coerced, any motor vehicle dealer to enter into any agreement with such the manufacturer, factory branch or representative thereof of the motor vehicle manufacturer or factory branch, or to do any other act unfair to said the dealer, by threatening to cancel any franchise existing between such the manufacturer, factory branch or representative thereof of the motor vehicle manufacturer or factory branch and said the dealer.
31,140 Section 140. 218.01 (3) (a) 17. of the statutes is renumbered 218.0116 (1) (i) 2. and amended to read:
218.0116 (1) (i) 2. Subject to sub. (3n) s. 218.0132, being a manufacturer, importer or distributor who has unfairly, without due regard to the equities or without just provocation, directly or indirectly canceled or failed to renew the franchise of any motor vehicle dealer; or being a manufacturer or importer, who has unfairly, without due regard to the equities or without just provocation, directly or indirectly canceled or failed to renew the franchise of any distributor. If there is a change in a manufacturer, importer or distributor, a motor vehicle dealer's franchise granted by the former manufacturer, importer or distributor shall continue in full force and operation under the new manufacturer, importer or distributor unless a mutual agreement of cancellation is filed with the department of transportation between the new manufacturer, importer or distributor and the dealer. In this subdivision, "due regard to the equities" means treatment in enforcing an agreement that is fair and equitable to a motor vehicle dealer or distributor and that is not discriminatory compared to similarly situated dealers or distributors; and "just provocation" means a material breach by a motor vehicle dealer or distributor, due to matters within the dealer's or distributor's control, of a reasonable and necessary provision of an agreement and the breach is not cured within a reasonable time after written notice of the breach has been received from the manufacturer, importer or distributor.
Note: The stricken definitions are recreated by this bill as s. 218.0116 (1) (i) 1. for proper location according to current style.
31,141 Section 141. 218.01 (3) (a) 18. of the statutes is renumbered 218.0116 (1) (im) 2. and amended to read:
218.0116 (1) (im) 2. Having accepted an order or contract of purchase from a buyer or a consumer lease or prelease agreement from a lessee or prospective lessee if such the arrangement results in the practice of bushing. For the purpose of this section, "bushing" means, with respect to an order or contract of purchase, the practice of increasing the selling price of a motor vehicle above that originally quoted the purchaser as evidenced by a purchase order or contract which has been signed by both the purchaser and dealer licensee and, with respect to a consumer lease or prelease agreement, the practice of increasing the gross capitalized cost above that originally quoted the lessee or prospective lessee as evidenced by a consumer lease or prelease agreement which has been signed by both the lessee or prospective lessee and the dealer licensee.
Note: The stricken definition is recreated by this bill as s. 218.0116 (1) (im) 1. by this bill for proper location according to current style.
31,142 Section 142. 218.01 (3) (a) 19. of the statutes is renumbered 218.0116 (1) (j).
31,143 Section 143. 218.01 (3) (a) 20. of the statutes is renumbered 218.0116 (1) (jm) and amended to read:
218.0116 (1) (jm) Having set up, promoted or aided in the promotion of a plan by which motor vehicles are sold or leased to a person for a consideration and upon the further consideration that the purchaser or lessee agrees to secure one or more persons to participate in the plan by respectively making a similar purchase or lease and in turn agreeing to secure one or more persons likewise to join in said the plan, each purchaser or lessee being given the right to secure money, credits, goods or something of value, depending upon the number of persons joining in the plan.
31,144 Section 144. 218.01 (3) (a) 21. of the statutes is renumbered 218.0116 (1) (k) and amended to read:
218.0116 (1) (k) Being a dealer who keeps open the dealer's place of business on Sunday for the purpose of buying, leasing or selling motor vehicles; but nothing in this subdivision paragraph shall apply to any person who conscientiously believes that the 7th day of the week, from sunset Friday to sunset Saturday, should be observed as the Sabbath and who actually refrains from conducting or engaging in the business of buying, leasing, selling or offering for lease or sale motor vehicles, or performing other secular business on that day.
31,145 Section 145. 218.01 (3) (a) 22. of the statutes is renumbered 218.0116 (1) (km) and amended to read:
218.0116 (1) (km) Being a manufacturer, importer or distributor who violates sub. (2c), (2d), (2f), (2g) or (2w) s. 218.0121, 218.0122, 218.0123, 218.0124 or 218.0125.
31,146 Section 146. 218.01 (3) (a) 23. of the statutes is renumbered 218.0116 (1) (L) and amended to read:
218.0116 (1) (L) Being a motor vehicle dealer who, in breach of an agreement, voluntarily changes its ownership or executive management, transfers its dealership assets to another person, adds another franchise at the same location as its existing franchise, or relocates a franchise without first complying with the procedures in sub. (3x) s. 218.0134.
31,147 Section 147. 218.01 (3) (a) 24. of the statutes is renumbered 218.0116 (1) (Lm) and amended to read:
218.0116 (1) (Lm) Being a manufacturer, importer or distributor who fails to comply with the procedures in sub. (3x) s. 218.0134 regarding a dealer's request for approval of a change of ownership or executive management, transfer of its dealership assets to another person, adding another franchise at the same location as its existing franchise, or relocation of a franchise or who fails to comply with an order of the division of hearings and appeals issued under sub. (3x) s. 218.0134.
31,148 Section 148. 218.01 (3) (a) 25. of the statutes is renumbered 218.0116 (1) (m).
31,149 Section 149. 218.01 (3) (a) 26. of the statutes is renumbered 218.0116 (1) (mm) and amended to read:
218.0116 (1) (mm) Being a manufacturer, factory branch, distributor, field representative, officer, agent or any representative of such a manufacturer, factory branch or distributor who, notwithstanding the terms of any agreement, refuses to honor the succession to the ownership or operation of a dealership under an existing franchise agreement by a designated family member of a deceased or incapacitated dealer, except in the manner prescribed by sub. (3c) s. 218.0131, or who unreasonably withholds its approval of a change of ownership or executive management of the dealership after the dealer's death or incapacity.
31,150 Section 150. 218.01 (3) (a) 27. of the statutes is renumbered 218.0116 (1) (n).
31,151 Section 151. 218.01 (3) (a) 28. of the statutes is renumbered 218.0116 (1) (nm) and amended to read:
218.0116 (1) (nm) Wilful failure to provide and maintain facilities and business records as required by this section ss. 218.0101 to 218.0163 or by any rule promulgated by the licensor pertaining to facility and business records.
31,152 Section 152. 218.01 (3) (a) 29. of the statutes is renumbered 218.0116 (1) (o).
31,153 Section 153. 218.01 (3) (a) 30. of the statutes is renumbered 218.0116 (1) (om).
31,154 Section 154. 218.01 (3) (a) 31. of the statutes is renumbered 218.0116 (1) (p) and amended to read:
218.0116 (1) (p) Having violated an order issued under par. (h) sub. (10).
31,155 Section 155. 218.01 (3) (a) 32. of the statutes is renumbered 218.0116 (1) (pm) and amended to read:
218.0116 (1) (pm) Being a manufacturer, factory branch or distributor who enters into a franchise agreement establishing or relocating a motor vehicle dealership, parts outlet or service outlet in a relevant market area without first complying with the procedure in par. (f) 1. sub. (7) (a).
31,156 Section 156. 218.01 (3) (a) 35. of the statutes is renumbered 218.0116 (1) (q) and amended to read:
218.0116 (1) (q) Being a manufacturer, factory branch or distributor who engages in any action which transfers to a motor vehicle dealer any responsibility of the manufacturer, factory branch or distributor under s. 218.015 218.0171.
31,157 Section 157. 218.01 (3) (a) 36. (intro.) of the statutes is renumbered 218.0116 (1) (qm) (intro.).
31,158 Section 158. 218.01 (3) (a) 36. a. of the statutes is renumbered 218.0116 (1) (qm) 1. and amended to read:
218.0116 (1) (qm) 1. Fails to notify the department of transportation of any revision or addition to an agreement as required under sub. (2) (bd) 1. s. 218.0114 (7) (a) 2.
31,159 Section 159. 218.01 (3) (a) 36. b. of the statutes is renumbered 218.0116 (1) (qm) 2. and amended to read:
218.0116 (1) (qm) 2. Fails to revise or remove portions of an agreement that the department of transportation declares to contain provisions which are inconsistent with sub. (2) (bm) s. 218.0114 (9).
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