"Installment lease contract" means a lease contract that authorizes or requires the delivery of goods in separate lots to be separately accepted, even though the lease contract contains a clause stating "each delivery is a separate lease" or its equivalent.
"Lease" means a transfer of the right to possession and use of goods for a term in return for consideration, but a sale, including a sale on approval or a sale or return, or a retention or creation of a security interest is not a lease. Unless the context clearly indicates otherwise, "lease" includes a sublease.
"Lease agreement" means the bargain, with respect to the lease, of the lessor and the lessee in fact as found in their language or by implication from other circumstances including course of dealing or usage of trade or course of performance as provided in this chapter. Unless the context clearly indicates otherwise, "lease agreement" includes a sublease agreement.
"Lease contract" means the total legal obligation that results from the lease agreement as affected by this chapter and any other applicable rules of law. Unless the context clearly indicates otherwise, "lease contract" includes a sublease contract.
"Leasehold interest" means the interest of the lessor or the lessee under a lease contract.
"Lessee" means a person who acquires the right to possession and use of goods under a lease. Unless the context clearly indicates otherwise, "lessee" includes a sublessee.
"Lessee in ordinary course of business" means a person who in good faith and without knowledge that the lease to him or her is in violation of the ownership rights or security interest or leasehold interest of a 3rd party in the goods leases in ordinary course from a person in the business of selling or leasing goods of that kind but does not include a pawnbroker. "Leasing" may be for cash or by exchange of other property or on secured or unsecured credit and includes acquiring goods or documents of title under a preexisting lease contract but does not include a transfer in bulk or as security for or in total or partial satisfaction of a money debt.
"Lessor" means a person who transfers the right to possession and use of goods under a lease. Unless the context clearly indicates otherwise, "lessor" includes a sublessor.
"Lessor's residual interest" means the lessor's interest in the goods after expiration, termination or cancellation of the lease contract.
"Lien" means a charge against or interest in goods to secure payment of a debt or performance of an obligation. "Lien" does not include a security interest.
"Lot" means a parcel or a single article that is the subject matter of a separate lease or delivery, whether or not it is sufficient to perform the lease contract.
"Merchant lessee" means a lessee that is a merchant with respect to goods of the kind subject to the lease.
"Present value" means the amount, as of a date certain, of one or more sums payable in the future, discounted to the date certain. The discount is determined by the interest rate specified by the parties if the rate was not manifestly unreasonable when the transaction was entered into; otherwise, the discount is determined by a commercially reasonable rate that takes into account the facts and circumstances of each case when the transaction was entered into.
"Purchase" includes taking by sale, lease, mortgage, security interest, pledge, gift or any other voluntary transaction creating an interest in goods.
"Sublease" means a lease of goods the right to possession and use of which was acquired by the lessor as a lessee under an existing lease.
"Supplier" means a person from whom a lessor buys or leases goods to be leased under a finance lease.
"Supply contract" means a contract under which a lessor buys or leases goods to be leased.
"Termination" occurs when either party pursuant to a power created by agreement or law puts an end to the lease contract otherwise than for default.
Other definitions applying to this chapter and the sections in which they appear are:
The following definitions in other chapters apply to this chapter:
In addition, ch. 401
contains general definitions and principles of construction and interpretation applicable throughout this chapter.
Leases subject to other law. 411.104(1)
A lease, although subject to this chapter, is also subject to any applicable:
Certificate of title statute of another jurisdiction.
Consumer protection statute of this state or final consumer protection decision of a court of this state existing on July 1, 1992.
Failure to comply with an applicable law has only the effect specified therein.
History: 1991 a. 148
; 1999 a. 9
Territorial application of chapter to goods covered by certificate of title.
Subject to ss. 411.304 (3)
and 411.305 (3)
, with respect to goods covered by a certificate of title issued under a statute of this state or of another jurisdiction, compliance and the effect of compliance or noncompliance with a certificate of title statute are governed by the law, including the conflict of laws rules, of the jurisdiction issuing the certificate until the earlier of the surrender of the certificate, or 4 months after the goods are removed from that jurisdiction and thereafter until a new certificate of title is issued by another jurisdiction.
History: 1991 a. 148
Limitation on power of parties to consumer lease to choose applicable law and judicial forum. 411.106(1)
If the law chosen by the parties to a consumer lease is that of a jurisdiction other than a jurisdiction in which the lessee resides when the lease agreement becomes enforceable or within 30 days thereafter or in which the goods are to be used, the choice is not enforceable.
If the judicial forum chosen by the parties to a consumer lease is a forum that would not otherwise have jurisdiction over the lessee, the choice is not enforceable.
History: 1991 a. 148
Waiver or renunciation of claim or right after default.
Any claim or right arising out of an alleged default or breach of warranty may be discharged in whole or in part without consideration by a written waiver or renunciation signed and delivered by the aggrieved party.
History: 1991 a. 148
If the court as a matter of law finds a lease contract or any clause of a lease contract to have been unconscionable when it was made, the court may refuse to enforce the lease contract, or it may enforce the remainder of the lease contract without the unconscionable clause, or it may so limit the application of any unconscionable clause as to avoid any unconscionable result.
With respect to a consumer lease, if the court as a matter of law finds that a lease contract or any clause of a lease contract has been induced by unconscionable conduct or that unconscionable conduct has occurred in the collection of a claim arising from a lease contract, the court may grant appropriate relief.
Before making a finding of unconscionability under sub. (1)
, the court, on its own motion or that of a party, shall afford the parties a reasonable opportunity to present evidence as to the setting, purpose and effect of the lease contract or the clause of the lease contract, or of the conduct.
In an action in which the lessee claims unconscionability with respect to a consumer lease, all of the following apply:
If the court finds unconscionability under sub. (1)
, the court shall award reasonable attorney fees to the lessee, notwithstanding s. 814.04 (1)
If the court does not find unconscionability and the lessee claiming unconscionability brought or maintained an action that he or she knew to be groundless, the court shall award reasonable attorney fees, notwithstanding s. 814.04 (1)
, to the party against whom the claim is made.
In determining attorney fees, the amount of the recovery on behalf of the claimant under subs. (1)
is not controlling.
History: 1991 a. 148
Option to accelerate at will. 411.109(1)
A term providing that one party or his or her successor in interest may accelerate payment or performance or require collateral or additional collateral "at will" or "when he or she considers himself or herself insecure" or in words of similar import means that he or she has power to do so only if he or she in good faith believes that the prospect of payment or performance is impaired.
With respect to a consumer lease, the burden of establishing good faith under sub. (1)
is on the party who exercised the power. With respect to a lease other than a consumer lease, the burden of establishing lack of good faith under sub. (1)
is on the party against whom the power has been exercised.
History: 1991 a. 148
FORMATION AND CONSTRUCTION
OF LEASE CONTRACT
A lease contract is not enforceable by way of action or defense unless any of the following occurs:
The total payments to be made under the lease contract, excluding payments for options to renew or buy, are less than $1,000.
There is a writing, signed by the party against whom enforcement is sought or by that party's authorized agent, sufficient to indicate that a lease contract has been made between the parties and to describe the goods leased and the lease term.
Any description of leased goods or of the lease term is sufficient and satisfies sub. (1) (b)
, whether or not it is specific, if it reasonably identifies what is described.
A writing is not insufficient because it omits or incorrectly states a term agreed upon, but the lease contract is not enforceable under sub. (1) (b)
beyond the lease term and the quantity of goods shown in the writing.
A lease contract that does not satisfy the requirements of sub. (1)
, but that is valid in other respects, is enforceable if any of the following occurs:
The goods are to be specially manufactured or obtained for the lessee and are not suitable for lease or sale to others in the ordinary course of the lessor's business, and the lessor, before notice of repudiation is received and under circumstances that reasonably indicate that the goods are for the lessee, has made either a substantial beginning of their manufacture or commitments for their procurement.
The party against whom enforcement is sought admits in that party's pleading, testimony or otherwise in court that a lease contract was made, except that the lease contract is not enforceable under this paragraph beyond the quantity of goods admitted.
Goods have been received and accepted by the lessee, except that the lease contract is not enforceable under this paragraph beyond the quantity of goods received and accepted.
The lease term under a lease contract referred to in sub. (4)
is one of the following:
If there is a writing signed by the party against whom enforcement is sought or by that party's authorized agent specifying the lease term, the term so specified.