AB969: Bill Text

AB969, s. 129 Section 129. 218.01 (3) (a) 10. and 11. of the statutes are renumbered 218.0116 (1) (em) and (f) and amended to read:

AB969,42,14 218.0116 (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.

AB969,42,16 (f) Having indulged engaged in any unconscionable practice relating to said the business of selling motor vehicles.

AB969, s. 130 Section 130. 218.01 (3) (a) 12. of the statutes is renumbered 218.0116 (1) (fm).

AB969, s. 131 Section 131. 218.01 (3) (a) 13. of the statutes is renumbered 218.0116 (1) (g) and amended to read:

AB969,42,21 218.0116 (1) (g) Having sold a retail instalment contract or consumer lease to a sales finance company that is not licensed hereunder.

AB969, s. 132 Section 132. 218.01 (3) (a) 14. of the statutes is renumbered 218.0116 (1) (gm).

AB969, s. 133 Section 133. 218.01 (3) (a) 15. of the statutes is renumbered 218.0116 (1) (h) and amended to read:

AB969,43,7 218.0116 (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.

AB969, s. 134 Section 134. 218.01 (3) (a) 16. of the statutes is renumbered 218.0116 (1) (hm) and amended to read:

AB969,43,18 218.0116 (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.

AB969, s. 135 Section 135. 218.01 (3) (a) 17. of the statutes is renumbered 218.0116 (1) (i) (intro.) and amended to read:

AB969,44,7 218.0116 (1) (i) (intro.) 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 paragraph, "due:

AB969,44,10 1. "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.

AB969,44,15 2. "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.

AB969, s. 136 Section 136. 218.01 (3) (a) 18. of the statutes, as affected by 1997 Wisconsin Act 48, is renumbered 218.0116 (1) (im) (intro.) and amended to read:

AB969,44,21 218.0116 (1) (im) (intro.) 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 In this section paragraph, "bushing" means, with:

AB969,44,25 1. 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.

AB969,45,4 2. 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: 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 Section 137. 218.01 (3) (a) 19. of the statutes is renumbered 218.0116 (1) (j).

AB969, s. 138 Section 138. 218.01 (3) (a) 20. of the statutes is renumbered 218.0116 (1) (jm) and amended to read:

AB969,45,14 218.0116 (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.

AB969, s. 139 Section 139. 218.01 (3) (a) 21. of the statutes is renumbered 218.0116 (1) (k) and amended to read:

AB969,45,23 218.0116 (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.

AB969, s. 140 Section 140. 218.01 (3) (a) 22. of the statutes is renumbered 218.0116 (1) (km) and amended to read:

AB969,46,5 218.0116 (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.

AB969, s. 141 Section 141. 218.01 (3) (a) 23. of the statutes is renumbered 218.0116 (1) (L) and amended to read:

AB969,46,12 218.0116 (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.

AB969, s. 142 Section 142. 218.01 (3) (a) 24. of the statutes is renumbered 218.0116 (1) (Lm) and amended to read:

AB969,46,20 218.0116 (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.

AB969, s. 143 Section 143. 218.01 (3) (a) 25. of the statutes is renumbered 218.0116 (1) (m).

AB969, s. 144 Section 144. 218.01 (3) (a) 26. of the statutes is renumbered 218.0116 (1) (mm) and amended to read:

AB969,47,6 218.0116 (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.

AB969, s. 145 Section 145. 218.01 (3) (a) 27. of the statutes is renumbered 218.0116 (1) (n).

AB969, s. 146 Section 146. 218.01 (3) (a) 28. of the statutes is renumbered 218.0116 (1) (nm) and amended to read:

AB969,47,12 218.0116 (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.

AB969, s. 147 Section 147. 218.01 (3) (a) 29. of the statutes is renumbered 218.0116 (1) (o).

AB969, s. 148 Section 148. 218.01 (3) (a) 30. of the statutes is renumbered 218.0116 (1) (om).

AB969, s. 149 Section 149. 218.01 (3) (a) 31. of the statutes is renumbered 218.0116 (1) (p) and amended to read:

AB969,47,17 218.0116 (1) (p) Having violated an order issued under par. (h) sub. (10).

AB969, s. 150 Section 150. 218.01 (3) (a) 32. of the statutes is renumbered 218.0116 (1) (pm) and amended to read:

AB969,47,23 218.0116 (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).

AB969, s. 151 Section 151. 218.01 (3) (a) 35. of the statutes is renumbered 218.0116 (1) (q) and amended to read:

AB969,48,3 218.0116 (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.

AB969, s. 152 Section 152. 218.01 (3) (a) 36. (intro.) of the statutes is renumbered 218.0116 (1) (qm) (intro.).

AB969, s. 153 Section 153. 218.01 (3) (a) 36. a. of the statutes is renumbered 218.0116 (1) (qm) 1. and amended to read:

AB969,48,10 218.0116 (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).

AB969, s. 154 Section 154. 218.01 (3) (a) 36. b. of the statutes is renumbered 218.0116 (1) (qm) 2. and amended to read:

AB969,48,15 218.0116 (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).

AB969, s. 155 Section 155. 218.01 (3) (a) 36. c. of the statutes is renumbered 218.0116 (1) (qm) 3. and amended to read:

AB969,48,21 218.0116 (1) (qm) 3. Requires or coerces a dealer or distributor to execute sign an agreement, as a condition of obtaining or continuing a franchise, that contains provisions that are void or prohibited under sub. (2) (bm) s. 218.0114 (9) or attempts to enforce an agreement with void or prohibited provisions.

AB969, s. 156 Section 156. 218.01 (3) (a) 36. d. of the statutes is renumbered 218.0116 (1) (qm) 4. (intro.) and amended to read:

AB969,49,7 218.0116 (1) (qm) 4. (intro.) Requires or coerces a dealer or distributor to execute sign an agreement that requires arbitration as a condition of obtaining or continuing a franchise, unless the dealer or distributor has the option of signing an otherwise identical agreement without the arbitration provision or unless the agreement provides for arbitration on a case-by-case basis and only when both parties elect to refer the matter to arbitration. This subd. 36. d. subdivision does not apply to a manufacturer or distributor who enters into an agreement that creates a new franchise for a new line make of motor vehicle, if the each of the following is applicable:

AB969,49,9 a. The arbitration provision was the subject of good faith negotiations with a representative group of dealers, and if each.

AB969,49,12 b. Each dealer voluntarily accepts the arbitration provision after receiving a franchise offering circular under s. 553.27 (4) that discloses the existence and effect of the arbitration provision, and if the.

AB969,49,15 c. The manufacturer or dealer files a copy of the franchise offering circular and proof of good faith negotiation and voluntary acceptance of the arbitration with any filing required under sub. (2) (bd) 1. s. 218.0114 (7) (a).

AB969, s. 157 Section 157. 218.01 (3) (a) 37. of the statutes is renumbered 218.0116 (1) (r) and amended to read:

AB969,49,21 218.0116 (1) (r) Being a manufacturer, distributor or importer who fails to designate in writing the area of sales responsibility assigned to a motor vehicle dealer or who changes or attempts to change an area of sales responsibility to avoid the requirements of par. (f) sub. (7).

AB969, s. 158 Section 158. 218.01 (3) (a) 38. of the statutes is renumbered 218.0116 (1) (rm) and amended to read:

AB969,50,3 218.0116 (1) (rm) Being a grantor, as defined in sub. (3r) (a) 2. s. 218.0133 (1) (b), who fails to pay a motor vehicle dealer agreement termination benefits under sub. (3r) s. 218.0133.

AB969, s. 159 Section 159. 218.01 (3) (a) 39. of the statutes is renumbered 218.0116 (1) (s) and amended to read:

AB969,50,8 218.0116 (1) (s) Being a manufacturer or distributor who modifies a motor vehicle dealer agreement during the term of the agreement or upon its renewal without complying with par. (fm) sub. (8).

AB969, s. 160 Section 160. 218.01 (3) (a) 40. of the statutes is renumbered 218.0116 (1) (sm) and amended to read:

AB969,50,11 218.0116 (1) (sm) Having violated s. 218.017 218.0172.

AB969, s. 161 Section 161. 218.01 (3) (a) 41. of the statutes is renumbered 218.0116 (1) (t) and amended to read:

AB969,50,21 218.0116 (1) (t) Being a manufacturer, importer or distributor who compels a dealer, through a financing subsidiary of the manufacturer, importer or distributor, to agree to unreasonable operating requirements or who directly or indirectly cancels or fails to renew a dealer's franchise, except as allowed under subs. (3) (a) 17. and (3n) par. (i) and s. 218.0132, through the actions of a financing subsidiary of the manufacturer, importer or distributor. This subdivision paragraph does not limit the right of a financing subsidiary to engage in business practices in accordance with the usages of the trade in which it is engaged.

AB969, s. 162 Section 162. 218.01 (3) (a) 42. of the statutes is renumbered 218.0116 (1) (tm) and amended to read:

AB969,51,3 218.0116 (1) (tm) Being a licensee who wilfully refuses or fails to participate in mediation pursuant to a demand for mediation served under sub. (7m) (a) s. 218.0136 (1).

AB969, s. 163 Section 163. 218.01 (3) (a) 43. of the statutes is renumbered 218.0116 (1) (u).

AB969, s. 164 Section 164. 218.01 (3) (b) of the statutes is renumbered 218.0116 (2) and amended to read:

AB969,51,12 218.0116 (2) The licensor may without prior notice deny the application for a license within 60 days after receipt thereof of the application by written notice to the applicant, stating the grounds for such the denial. Within 30 days after such receiving the notice, the applicant may petition the division of hearings and appeals to conduct a hearing to review the denial, and a hearing shall be scheduled with reasonable promptness.

AB969, s. 165 Section 165. 218.01 (3) (bf) of the statutes is renumbered 218.0116 (3) and amended to read:

AB969,51,23 218.0116 (3) (a) 1. Except as provided in subd. 1. b. 2., the department of transportation shall not license an applicant as a dealer an applicant for the sale or lease of motor vehicles at retail unless such the applicant owns or leases a vehicle display lot and a permanent building wherein in which there are facilities to display motor vehicles and facilities to repair functional and nonfunctional parts of motor vehicles and, where replacement parts, repair tools and equipment to service motor vehicles are kept, and at which place of business shall be kept and maintained the books, records and files necessary to conduct the dealer's business shall be kept and maintained.

AB969,51,25 1m. A residence, tent or temporary stand is not a sufficiently permanent place of business building within the meaning of this paragraph subd. 1.

AB969,52,5 2. The requirements in subd. 1. a. that an applicant own or lease a vehicle display lot and that the permanent building owned or leased by the applicant contain facilities to display motor vehicles do not apply to persons who are engaged only in the leasing of motor vehicles and who do not maintain an inventory of motor vehicles offered for lease.

AB969,52,11 (b) An approved service contract with an established repair shop having the repair parts and repair facilities specified in subd. par. (a) 1. shall serve in lieu of the applicant's owning or leasing the applicant's own repair facilities if such the service connection is within a reasonable distance from the applicant's place of business and if such the service connection guarantees in writing the making of the repairs or replacements ordered by the dealer.

AB969,52,13 (c) This paragraph subsection does not apply to persons who deal only in mopeds or motor bicycles.

AB969, s. 166 Section 166. 218.01 (3) (c) of the statutes is renumbered 218.0116 (4) and amended to read:

AB969,52,21 218.0116 (4) (a) No license may be suspended or revoked except after a hearing thereon on the possible suspension or revocation. Except as provided in subd. 2. par. (b), the licensor shall give the licensee at least 5 days' notice of the time and place of such the hearing, and the. The order suspending or revoking such the license shall not be effective until after 10 days' written notice thereof of the order to the licensee, after such the hearing under this paragraph has been had held.

AB969,53,2 (b) When in the licensor's opinion the best interest of the public or the trade demands it, for conduct or under circumstances specified in this section ss. 218.0101 to 218.0163 or in rules promulgated by the licensor, the licensor may suspend a license upon not less than 24 hours' notice of hearing and with not less than 24 hours' notice of the suspension of the license.

AB969,53,9 (c) Matters involving suspensions or revocations brought before the department of transportation shall be heard and decided upon by the division of hearings and appeals. If the department of transportation requests the division of hearings and appeals to hear a matter brought before the department of transportation under subd. 2. par. (b), the division of hearings and appeals shall hear and decide the matter within 30 days after the date of the department of transportation's request.

AB969, s. 167 Section 167. 218.01 (3) (d) of the statutes is renumbered 218.0116 (5) and amended to read:

AB969,53,17 218.0116 (5) The licensor may inspect the pertinent books, records, letters and contracts of a licensee and shall determine the cost of an examination. The cost of an examination shall be paid by such the licensee so examined within 30 days after demand therefor for the examination by the licensor, and the. The licensor may maintain an action for the recovery of such the costs of the examination in any court of competent jurisdiction.

AB969, s. 168 Section 168. 218.01 (3) (e) of the statutes is renumbered 218.0116 (6) and amended to read:

AB969,54,4 218.0116 (6) If a licensee is a firm, corporation or limited liability company, it shall be sufficient cause for the denial, suspension or revocation of a license that any officer, director, trustee or manager of the firm, corporation or limited liability company, or any member in case of a partnership, has been guilty of any act or omission which would be cause for refusing, suspending or revoking a license to such that party as an individual. Each licensee shall be responsible for the acts of any or all of his or her salespersons while acting as his or her agent, if the licensee approved of or had knowledge of the acts or other similar acts and after such approval approving of or obtaining knowledge of the acts retained the benefit, proceeds, profits or advantages accruing from the acts or otherwise ratified the acts.

AB969, s. 169 Section 169. 218.01 (3) (f) 1. of the statutes is renumbered 218.0116 (7) (a) 1. and amended to read:

AB969,54,19 218.0116 (7) (a) 1. A manufacturer, importer or distributor who seeks to enter into a franchise agreement establishing or relocating a motor vehicle dealership, parts outlet or service outlet within the relevant market area of an existing enfranchised dealer of the line make of motor vehicle shall first notify, in writing, the department of transportation and each such that existing enfranchised dealer of its intention to establish or relocate a dealership or outlet. Within 30 days of receiving the notice or within 30 days after the end of any appeal procedure provided by the manufacturer, importer or distributor, whichever is later, any existing enfranchised dealer of the same line make to whom the manufacturer, importer or distributor is required to give entitled to receive notice under this subdivision paragraph may file with the department of transportation and the division of hearings and appeals a complaint protesting the proposed establishment or relocation of the dealership or outlet within the relevant market area of the existing enfranchised dealer.

AB969,55,2 2. If a complaint is filed under subd. 1., the department of transportation shall inform the manufacturer, importer or distributor that a timely complaint has been filed, that a hearing is required, and that the proposed franchise agreement may not be entered into until the division of hearings and appeals has held a hearing, nor thereafter, if the division of hearings and appeals determines that there is good cause for not permitting the proposed establishment or relocation of the dealership or outlet. In the event of multiple complaints, hearings shall be consolidated to expedite the disposition of the issue.