AB969, s. 93 17Section 93. 218.01 (2) (g) of the statutes is renumbered 218.0114 (19).
AB969, s. 94 18Section 94. 218.01 (2) (h) 1. of the statutes is renumbered 218.0114 (20) (a) and
19amended to read:
AB969,32,2420 218.0114 (20) (a) If the licensor has reasonable cause to doubt the financial
21responsibility of the applicant or licensee or the compliance by the applicant or
22licensee with this section ss. 218.0101 to 218.0163, the licensor may require the
23applicant or licensee to furnish information relating to the applicant's or licensee's
24solvency and financial standing.
AB969, s. 95
1Section 95. 218.01 (2) (h) 2. of the statutes is renumbered 218.0114 (20) (b) and
2amended to read:
AB969,33,173 218.0114 (20) (b) Provided If the licensor has reasonable cause to doubt the
4financial responsibility of the applicant or licensee or the compliance by the
5applicant or licensee with this section ss. 218.0101 to 218.0163, the licensor may
6require the applicant or licensee to furnish and maintain a bond in the form, amount
7and with the sureties it approves, but not less than $5,000, nor more than $100,000,
8conditioned upon the applicant or licensee complying with the statutes applicable to
9the licensee and as indemnity for any loss sustained by any person by reason of any
10acts of the licensee constituting grounds for suspension or revocation of the license
11under this section ss. 218.0101 to 218.0163. The bonds shall be executed in the name
12of the department of transportation for the benefit of any aggrieved parties;
13provided
, except that the aggregate liability of the surety to all such aggrieved
14parties shall, in no event, exceed the amount of the bond. The bonding requirements
15in this subdivision paragraph shall not apply to manufacturers, factory branches,
16and their agents and is in addition to the bond or letter of credit required of a motor
17vehicle dealer under par. (bb) 1. sub. (5) (a).
AB969, s. 96 18Section 96. 218.01 (2) (h) 3. of the statutes is renumbered 218.0114 (20) (c) and
19amended to read:
AB969,34,420 218.0114 (20) (c) An applicant or licensee furnishing information under subd.
211.
par. (a) may designate the information as a trade secret, as defined in s. 134.90 (1)
22(c), or as confidential business information. The licensor shall notify the applicant
23or licensee providing the information 15 days before any information designated as
24a trade secret or as confidential business information is disclosed to the legislature,
25a state agency, as defined in s. 13.62 (2), a local governmental unit, as defined in s.

1605.01 (1), or any other person. The applicant or licensee furnishing the information
2may seek a court order limiting or prohibiting the disclosure. In such cases in which
3case
, the court shall weigh the need for confidentiality of the information against the
4public interest in the disclosure.
AB969, s. 97 5Section 97. 218.01 (2) (i) of the statutes is renumbered 218.0114 (21) and
6amended to read:
AB969,34,197 218.0114 (21) Application for dealers' licenses shall be submitted to the
8department of transportation in duplicate and shall contain such information as the
9licensors require. Application for sales finance company licenses shall contain such
10information as the division of banking requires. No motor vehicle dealer or sales
11finance company, unless so licensed, shall be permitted to register or receive or use
12registration plates under ss. 341.47 to 341.57. The department of transportation
13shall transmit the duplicate copy of each application for a dealer's license to the
14division of banking with the fee required under par. (d) 8. sub. (14) (g). The division
15of banking may not refund the fee required under par. (d) 8. sub. (14) (g). The division
16of banking shall approve a sales finance company license for a dealer if no prior sales
17finance company license has been suspended or revoked, and if the applicant meets
18the requirements of this section ss. 218.0101 to 218.0163 relating to sales finance
19companies.
AB969, s. 98 20Section 98. 218.01 (2) (j) of the statutes is renumbered 218.0114 (22) and
21amended to read:
AB969,34,2422 218.0114 (22) A motor vehicle dealer licensed in accordance with the provisions
23of this section ss. 218.0101 to 218.0163 shall make reports to the licensor at such
24intervals and showing such information as the licensor may require.
AB969, s. 99 25Section 99. 218.01 (2) (k) of the statutes is renumbered 218.0114 (23).
AB969, s. 100
1Section 100. 218.01 (2a) (title) of the statutes is renumbered 218.0119 (title).
AB969, s. 101 2Section 101. 218.01 (2a) (a) of the statutes is renumbered 218.0119 (1).
AB969, s. 102 3Section 102. 218.01 (2a) (b) of the statutes is renumbered 218.0119 (2) and
4amended to read:
AB969,35,85 218.0119 (2) Whenever a licensed dealer, distributor, manufacturer or
6transporter opens a new place of business, the licensee shall promptly report such
7that fact, including the address thereof of the new place of business, to the
8department of transportation.
AB969, s. 103 9Section 103. 218.01 (2a) (c) of the statutes is renumbered 218.0119 (3) and
10amended to read:
AB969,35,1811 218.0119 (3) Whenever a licensed dealer, distributor or manufacturer
12discontinues or disposes of his or her business, such person that dealer, distributor
13or manufacturer
shall promptly report such that fact to the department of
14transportation and return the license and registration plates issued. Whenever a
15licensed dealer, distributor or manufacturer discontinues business due to license
16suspension or revocation, such person that dealer, distributor or manufacturer shall
17surrender the licenses and registration plates to the department of transportation
18for such the suspension or revocation period.
AB969, s. 104 19Section 104. 218.01 (2a) (d) of the statutes is renumbered 218.0119 (4) and
20amended to read:
AB969,35,2321 218.0119 (4) Any dealer, distributor, manufacturer or transporter who fails to
22comply with the requirements of this subsection section may be fined not more than
23$200 or imprisoned for not more than 6 months or both.
AB969, s. 105 24Section 105. 218.01 (2c) of the statutes is renumbered 218.0121 and amended
25to read:
AB969,36,4
1218.0121 Factory stores. A manufacturer, importer or distributor, or a
2subsidiary thereof of a manufacturer, importer or distributor, shall not own, operate
3or control a motor vehicle dealership in this state. This subsection does not prohibit
4any of the following:
AB969,36,8 5(1) The ownership and operation by a manufacturer, importer or distributor,
6or a subsidiary thereof of a manufacturer, importer or distributor, of a dealership for
7a temporary period, not to exceed one year, during the transition from one owner or
8operator to another.
AB969,36,16 9(2) The ownership or control of a dealership by a manufacturer, importer or
10distributor, or a subsidiary thereof of a manufacturer, importer or distributor, if the
11dealership is being sold under a bona fide contract or purchase option to the operator
12of the dealership, or a contract exists under which the operator of the dealership can
13expect to acquire full ownership of or a controlling interest in the dealership, and
14after the transfer of ownership is completed the dealership will no longer be owned,
15operated or controlled by the manufacturer, importer or distributor, or a subsidiary
16thereof of the manufacturer, importer or distributor.
AB969,36,24 17(3) The ownership, operation or control of a dealership by a manufacturer,
18importer or distributor, or subsidiary thereof of a manufacturer, importer or
19distributor
, which does not meet the conditions under par. (a) or (b) sub. (1) or (2), if
20the division of hearings and appeals determines, after a hearing on the matter at the
21request of any party, that there is no prospective independent dealer available to own
22and operate the dealership in a manner consistent with the public interest and that
23meets the reasonable standard and uniformly applied qualifications of the
24manufacturer, importer or distributor.
AB969, s. 106
1Section 106. 218.01 (2d) of the statutes is renumbered 218.0122 and amended
2to read:
AB969,37,14 3218.0122 Damages to delivered vehicles. (1) A manufacturer, importer or
4distributor shall disclose in writing to a motor vehicle dealer, at or before delivery to
5the dealer, any damage and repair to a new motor vehicle occurring after the
6manufacturing process is complete but before delivery to the dealer, if the cost of the
7repair exceeds 6% of the manufacturer's suggested retail price, as measured by retail
8repair costs. Replacement of glass, tires, bumpers, fenders, moldings, audio
9equipment, instrument panels, hoods and deck lids with identical manufacturer's
10original equipment is not considered damage and repair under this paragraph
11subsection. If a manufacturer, importer or distributor fails to make a disclosure of
12damage and repair under this paragraph subsection, it shall be liable to the dealer
13for any liability imposed on the dealer for a failure on the part of the dealer to disclose
14that damage and repair.
AB969,38,2 15(2) If the cost of repairing damage to a new motor vehicle that occurs before
16delivery to the dealer's location exceeds 6% of the manufacturer's suggested retail
17price, as measured by retail repair costs, the dealer may reject or, if title has passed
18to the dealer, require the manufacturer, importer or distributor who delivered the
19vehicle to repurchase the vehicle within 10 business days after delivery, unless the
20damage occurred during shipment and the method of transportation, carrier or
21transporter of the motor vehicle was designated by the motor vehicle dealer. Upon
22repurchase, the manufacturer, importer or distributor shall be subrogated to all of
23the dealer's rights against the carrier or transporter of the motor vehicle regarding
24damage. The cost of repairing glass, tires, bumpers, moldings and audio equipment

1with identical manufacturer's original equipment shall not be included in
2determining the cost of repairing damage under this paragraph subsection.
AB969,38,4 3(3) This subsection section does not apply to motorcycles that are delivered in
4a crated, disassembled condition to the dealer or the dealer's agent.
AB969, s. 107 5Section 107. 218.01 (2f) of the statutes is renumbered 218.0123.
AB969, s. 108 6Section 108. 218.01 (2g) of the statutes is renumbered 218.0124.
AB969, s. 109 7Section 109. 218.01 (2w) (title) of the statutes is renumbered 218.0125 (title).
AB969, s. 110 8Section 110. 218.01 (2w) (a) of the statutes is renumbered 218.0125 (1) and
9amended to read:
AB969,38,1210 218.0125 (1) In this subsection section, "dealer cost" means the wholesale cost
11for a part as listed in the manufacturer's, importer's or distributor's current price
12schedules or, if the part is not so listed, the dealer's original invoice cost for the part.
AB969, s. 111 13Section 111. 218.01 (2w) (b) of the statutes is renumbered 218.0125 (2).
AB969, s. 112 14Section 112. 218.01 (2w) (c) of the statutes is renumbered 218.0125 (3) and
15amended to read:
AB969,39,216 218.0125 (3) To be eligible for compensation for parts under par. (b) sub. (2),
17a dealer shall notify the manufacturer, importer or distributor in writing of the
18amounts that the dealer charges its other retail service customers for parts and
19request that it be paid for parts in accordance with this subsection section. The notice
20may be limited to the dealer's average markup over dealer cost that the dealer
21charges its other retail service customers for parts used to perform similar work. The
22notice shall be served upon the manufacturer, importer or distributor not less than
2330 days before the date on which the dealer requests that the manufacturer, importer
24or distributor begin paying the dealer for parts at the stated amounts. The
25manufacturer, importer or distributor shall pay the dealer, as provided in this

1subsection section, at the amounts stated in the dealer notice for parts used in work
2performed on and after the beginning date stated in the notice.
AB969, s. 113 3Section 113. 218.01 (2w) (d) of the statutes is renumbered 218.0125 (4).
AB969, s. 114 4Section 114. 218.01 (2w) (e) of the statutes is renumbered 218.0125 (5) and
5amended to read:
AB969,39,126 218.0125 (5) A manufacturer, importer or distributor who fails to compensate
7a dealer for parts at an amount not less than the amount the dealer charges its other
8retail service customers for parts used to perform similar work shall not be found to
9have violated this subsection section if the manufacturer, importer or distributor
10shows that the amount is not reasonably competitive to the amounts charged to retail
11service customers by other similarly situated franchised motor vehicle dealers in this
12state for the same parts when used by those dealers to perform similar work.
AB969, s. 115 13Section 115. 218.01 (2w) (f) of the statutes is renumbered 218.0125 (6) and
14amended to read:
AB969,40,415 218.0125 (6) If a manufacturer, importer or distributor furnishes a part to a
16dealer at no cost for use by the dealer in performing work for which the manufacturer,
17importer or distributor is required to compensate the dealer under this subsection
18section, the manufacturer, importer or distributor shall compensate the dealer for
19the part at an amount not less than the amount the dealer charges its other retail
20customers for parts when used to perform similar work less the wholesale cost for
21such the furnished part as listed in the manufacturer's current price schedules. A
22manufacturer, importer or distributor may pay the dealer a reasonable handling fee
23instead of the compensation otherwise required by this subsection section for special
24high-performance complete engine assemblies furnished to the dealer at no cost,
25provided that the manufacturer, importer or distributor excludes special

1high-performance complete engine assemblies in determining whether the amounts
2requested in the dealer's notice are consistent with the amounts that the dealer
3charges its other retail service customers for parts used by the dealer to perform
4similar work.
AB969, s. 116 5Section 116. 218.01 (2w) (g) of the statutes is renumbered 218.0125 (7) and
6amended to read:
AB969,40,207 218.0125 (7) A claim made by a franchised motor vehicle dealer for
8compensation under this subsection section shall be either approved or disapproved
9within 30 days after the claim is submitted to the manufacturer, importer or
10distributor in the manner and on the forms the manufacturer, importer or distributor
11reasonably prescribes. An approved claim shall be paid within 30 days after its
12approval; and, if. If a claim is not specifically disapproved in writing or by electronic
13transmission within 30 days after the date on which the manufacturer, importer or
14distributor receives it, the claim shall be considered to be approved and payment
15shall follow within 30 days. A manufacturer, importer or distributor retains the right
16to audit claims for a period of one year after the date on which the claim is paid and
17to charge back any amounts paid on claims that are false or unsubstantiated. If there
18is evidence of fraud, this paragraph subsection does not limit the right of the
19manufacturer to audit for longer periods and charge back for any fraudulent claim,
20subject to the limitations period under s. 893.93 (1) (b).
AB969, s. 117 21Section 117. 218.01 (2x) of the statutes is renumbered 218.0126 and amended
22to read:
AB969,41,12 23218.0126 Promotional allowances. A claim made by a franchised motor
24vehicle dealer for promotional allowances or other incentive payments shall be either
25approved or disapproved within 30 days after the claim is submitted to the

1manufacturer, importer or distributor in the manner and on the forms the
2manufacturer, importer or distributor reasonably prescribes. An approved claim
3shall be paid within 30 days after its approval; and, if. If a claim is not specifically
4disapproved in writing or by electronic transmission within 30 days after the date
5on which the manufacturer, importer or distributor receives it, the claim shall be
6considered to be approved and payment shall follow within 30 days after approval.
7A manufacturer, importer or distributor retains the right to audit a claim for a period
8of 2 years after the date on which the claim is paid and to charge back any amounts
9paid on claims that are false or unsubstantiated. If there is evidence of fraud, this
10subsection section does not limit the right of the manufacturer to audit for longer
11periods and charge back for any fraudulent claim, subject to the limitations period
12under s. 893.93 (1) (b).
AB969, s. 118 13Section 118. 218.01 (3) (title) of the statutes is renumbered 218.0116 (title).
AB969, s. 119 14Section 119. 218.01 (3) (a) (intro.) of the statutes is renumbered 218.0116 (1)
15(intro.).
AB969, s. 120 16Section 120. 218.01 (3) (a) 1. of the statutes is renumbered 218.0116 (1) (a).
AB969, s. 121 17Section 121. 218.01 (3) (a) 2. of the statutes is renumbered 218.0116 (1) (am).
AB969, s. 122 18Section 122. 218.01 (3) (a) 3. of the statutes is renumbered 218.0116 (1) (b).
AB969, s. 123 19Section 123. 218.01 (3) (a) 4. of the statutes is renumbered 218.0116 (1) (bm)
20and amended to read:
AB969,41,2321 218.0116 (1) (bm) Wilful failure to comply with any provision of this section ss.
22218.0101 to 218.0163
or any rule or regulation promulgated by the licensor under
23this section ss. 218.0101 to 218.0163.
AB969, s. 124 24Section 124. 218.01 (3) (a) 5. of the statutes is renumbered 218.0116 (1) (c).
AB969, s. 125 25Section 125. 218.01 (3) (a) 6. of the statutes is renumbered 218.0116 (1) (cm).
AB969, s. 126
1Section 126. 218.01 (3) (a) 7. of the statutes is renumbered 218.0116 (1) (d).
AB969, s. 127 2Section 127. 218.01 (3) (a) 8. of the statutes is renumbered 218.0116 (1) (dm).
AB969, s. 128 3Section 128. 218.01 (3) (a) 9. of the statutes is renumbered 218.0116 (1) (e) and
4amended to read:
AB969,42,85 218.0116 (1) (e) Fraudulent misrepresentation, circumvention or concealment
6through whatsoever subterfuge or device of any of the material particulars or the
7nature thereof required hereunder to be stated or furnished to the retail buyer, lessee
8or prospective lessee.
AB969, s. 129 9Section 129. 218.01 (3) (a) 10. and 11. of the statutes are renumbered 218.0116
10(1) (em) and (f) and amended to read:
AB969,42,1411 218.0116 (1) (em) Employment of fraudulent devices, methods or practices in
12connection with compliance with the statutes with respect to the retaking of goods
13under retail instalment contracts or consumer leases and the redemption and resale
14or subsequent lease of such the retaken goods.
AB969,42,1615 (f) Having indulged engaged in any unconscionable practice relating to said the
16business of selling motor vehicles.
AB969, s. 130 17Section 130. 218.01 (3) (a) 12. of the statutes is renumbered 218.0116 (1) (fm).
AB969, s. 131 18Section 131. 218.01 (3) (a) 13. of the statutes is renumbered 218.0116 (1) (g)
19and amended to read:
AB969,42,2120 218.0116 (1) (g) Having sold a retail instalment contract or consumer lease to
21a sales finance company that is not licensed hereunder.
AB969, s. 132 22Section 132. 218.01 (3) (a) 14. of the statutes is renumbered 218.0116 (1) (gm).
AB969, s. 133 23Section 133. 218.01 (3) (a) 15. of the statutes is renumbered 218.0116 (1) (h)
24and amended to read:
AB969,43,7
1218.0116 (1) (h) Being a manufacturer, importer or distributor who has coerced
2or attempted to coerce any motor vehicle dealer to order any commodity or service
3or to accept delivery of or pay for any commodity or service that the motor vehicle
4dealer has not ordered. This subdivision paragraph does not modify or prohibit
5reasonable requirements in a franchise agreement that require a dealer to market
6and service a representative line of new motor vehicles that the manufacturer,
7importer or distributor is publicly advertising.
AB969, s. 134 8Section 134. 218.01 (3) (a) 16. of the statutes is renumbered 218.0116 (1) (hm)
9and amended to read:
AB969,43,1810 218.0116 (1) (hm) Being a manufacturer of motor vehicles, factory branch,
11distributor, field representative, officer, agent or any representative whatsoever of
12such a motor vehicle manufacturer or factory branch, who has attempted to induce
13or coerce, or has induced or coerced, any motor vehicle dealer to enter into any
14agreement with such the manufacturer, factory branch or representative thereof of
15the motor vehicle manufacturer or factory branch
, or to do any other act unfair to said
16the dealer, by threatening to cancel any franchise existing between such the
17manufacturer, factory branch or representative thereof of the motor vehicle
18manufacturer or factory branch
and said the dealer.
AB969, s. 135 19Section 135. 218.01 (3) (a) 17. of the statutes is renumbered 218.0116 (1) (i)
20(intro.) and amended to read:
AB969,44,721 218.0116 (1) (i) (intro.) Subject to sub. (3n) s. 218.0132, being a manufacturer,
22importer or distributor who has unfairly, without due regard to the equities or
23without just provocation, directly or indirectly canceled or failed to renew the
24franchise of any motor vehicle dealer; or being a manufacturer or importer, who has
25unfairly, without due regard to the equities or without just provocation, directly or

1indirectly canceled or failed to renew the franchise of any distributor. If there is a
2change in a manufacturer, importer or distributor, a motor vehicle dealer's franchise
3granted by the former manufacturer, importer or distributor shall continue in full
4force and operation under the new manufacturer, importer or distributor unless a
5mutual agreement of cancellation is filed with the department of transportation
6between the new manufacturer, importer or distributor and the dealer. In this
7subdivision paragraph, "due:
AB969,44,10 81. "Due regard to the equities" means treatment in enforcing an agreement that
9is fair and equitable to a motor vehicle dealer or distributor and that is not
10discriminatory compared to similarly situated dealers or distributors ; and "just.
AB969,44,15 112. "Just provocation" means a material breach by a motor vehicle dealer or
12distributor, due to matters within the dealer's or distributor's control, of a reasonable
13and necessary provision of an agreement and the breach is not cured within a
14reasonable time after written notice of the breach has been received from the
15manufacturer, importer or distributor.
AB969, s. 136 16Section 136. 218.01 (3) (a) 18. of the statutes, as affected by 1997 Wisconsin
17Act 48
, is renumbered 218.0116 (1) (im) (intro.) and amended to read:
AB969,44,2118 218.0116 (1) (im) (intro.) Having accepted an order or contract of purchase from
19a buyer or a consumer lease or prelease agreement from a lessee or prospective lessee
20if such the arrangement results in the practice of bushing. For the purpose of In this
21section paragraph, "bushing" means, with:
AB969,44,25 221. With respect to an order or contract of purchase, the practice of increasing
23the selling price of a motor vehicle above that originally quoted the purchaser as
24evidenced by a purchase order or contract which has been signed by both the
25purchaser and dealer licensee and, with.
AB969,45,4
12. With respect to a consumer lease or prelease agreement, the practice of
2increasing the gross capitalized cost above that originally quoted the lessee or
3prospective lessee as evidenced by a consumer lease or prelease agreement which has
4been signed by both the lessee or prospective lessee and the dealer licensee.
Note: Even though the unamended text refers to "this section", the only occurrence
of the term is in this statutory subunit. As a result, "section" is amended to refer only to
"paragraph".
AB969, s. 137 5Section 137. 218.01 (3) (a) 19. of the statutes is renumbered 218.0116 (1) (j).
AB969, s. 138 6Section 138. 218.01 (3) (a) 20. of the statutes is renumbered 218.0116 (1) (jm)
7and amended to read:
AB969,45,148 218.0116 (1) (jm) Having set up, promoted or aided in the promotion of a plan
9by which motor vehicles are sold or leased to a person for a consideration and upon
10the further consideration that the purchaser or lessee agrees to secure one or more
11persons to participate in the plan by respectively making a similar purchase or lease
12and in turn agreeing to secure one or more persons likewise to join in said the plan,
13each purchaser or lessee being given the right to secure money, credits, goods or
14something of value, depending upon the number of persons joining in the plan.
AB969, s. 139 15Section 139. 218.01 (3) (a) 21. of the statutes is renumbered 218.0116 (1) (k)
16and amended to read:
AB969,45,2317 218.0116 (1) (k) Being a dealer who keeps open the dealer's place of business
18on Sunday for the purpose of buying, leasing or selling motor vehicles; but nothing
19in this subdivision paragraph shall apply to any person who conscientiously believes
20that the 7th day of the week, from sunset Friday to sunset Saturday, should be
21observed as the Sabbath and who actually refrains from conducting or engaging in
22the business of buying, leasing, selling or offering for lease or sale motor vehicles, or
23performing other secular business on that day.
AB969, s. 140
1Section 140. 218.01 (3) (a) 22. of the statutes is renumbered 218.0116 (1) (km)
2and amended to read:
AB969,46,53 218.0116 (1) (km) Being a manufacturer, importer or distributor who violates
4sub. (2c), (2d), (2f), (2g) or (2w) s. 218.0121, 218.0122, 218.0123, 218.0124 or
5218.0125
.
AB969, s. 141 6Section 141. 218.01 (3) (a) 23. of the statutes is renumbered 218.0116 (1) (L)
7and amended to read:
AB969,46,128 218.0116 (1) (L) Being a motor vehicle dealer who, in breach of an agreement,
9voluntarily changes its ownership or executive management, transfers its
10dealership assets to another person, adds another franchise at the same location as
11its existing franchise, or relocates a franchise without first complying with the
12procedures in sub. (3x) s. 218.0134.
AB969, s. 142 13Section 142. 218.01 (3) (a) 24. of the statutes is renumbered 218.0116 (1) (Lm)
14and amended to read:
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