SB99, s. 95
3Section
95. 218.01 (2) (f) of the statutes is renumbered 218.0114 (18) and
4amended to read:
SB99,36,125
218.0114
(18) Every salesperson, factory representative or distributor
6representative shall carry his or her license when engaged in business, and display
7the license upon request. The license shall name
his or her the licensee's employer
,
8and in case of. Upon leaving an employer, the
salesperson licensee shall immediately
9surrender the license to his or her employer who shall mail the license to the licensor.
10If during the license period the
individual licensee again is employed or acts as a
11salesperson, he or she shall make application for reissue of a salesperson's license.
12There shall be no fee in connection with
such the subsequent applications.
SB99, s. 96
13Section
96. 218.01 (2) (g) of the statutes is renumbered 218.0114 (19).
SB99, s. 97
14Section
97. 218.01 (2) (h) 1. of the statutes is renumbered 218.0114 (20) (a) and
15amended to read:
SB99,36,2016
218.0114
(20) (a) If the licensor has reasonable cause to doubt the financial
17responsibility of the applicant or licensee or the compliance by the applicant or
18licensee with
this section ss. 218.0101 to 218.0163, the licensor may require the
19applicant or licensee to furnish information relating to the applicant's or licensee's
20solvency and financial standing.
SB99, s. 98
21Section
98. 218.01 (2) (h) 2. of the statutes is renumbered 218.0114 (20) (b) and
22amended to read:
SB99,37,1223
218.0114
(20) (b)
Provided If the licensor has reasonable cause to doubt the
24financial responsibility of the applicant or licensee or the compliance by the
25applicant or licensee with
this section ss. 218.0101 to 218.0163, the licensor may
1require the applicant or licensee to furnish and maintain a bond in the form, amount
2and with the sureties it approves, but not less than $5,000, nor more than $100,000,
3conditioned upon the applicant or licensee complying with the statutes applicable to
4the licensee and as indemnity for any loss sustained by any person by reason of any
5acts of the licensee constituting grounds for suspension or revocation of the license
6under
this section ss. 218.0101 to 218.0163. The bonds shall be executed in the name
7of the department of transportation for the benefit of any aggrieved parties
;
8provided, except that the aggregate liability of the surety to all
such aggrieved 9parties shall, in no event, exceed the amount of the bond. The bonding requirements
10in this
subdivision paragraph shall not apply to manufacturers, factory branches,
11and their agents and is in addition to the bond or letter of credit required of a motor
12vehicle dealer under
par. (bb) 1. sub. (5) (a).
SB99, s. 99
13Section
99. 218.01 (2) (h) 3. of the statutes is renumbered 218.0114 (20) (c) and
14amended to read:
SB99,38,315
218.0114
(20) (c) An applicant or licensee furnishing information under
subd.
161. par. (a) may designate the information as a trade secret, as defined in s. 134.90 (1)
17(c), or as confidential business information. The licensor shall notify the applicant
18or licensee providing the information 15 days before any information designated as
19a trade secret or as confidential business information is disclosed to the legislature,
20a state agency, as defined in s. 13.62 (2), a local governmental unit, as defined in s.
21605.01 (1), or any other person. The applicant or licensee furnishing the information
22may seek a court order limiting or prohibiting the disclosure
. In such cases,, in which
23case the court shall weigh the need for confidentiality of the information against the
24public interest in the disclosure. A designation under this
subdivision paragraph 25does not prohibit the disclosure of a person's name or address, of the name or address
1of a person's employer or of financial information that relates to a person when
2requested under s. 49.22 (2m) by the department of workforce development or a
3county child support agency under s. 59.53 (5).
SB99, s. 100
4Section
100. 218.01 (2) (i) of the statutes is renumbered 218.0114 (21) and
5amended to read:
SB99,38,186
218.0114
(21) Application for dealers' licenses shall be submitted to the
7department of transportation in duplicate and shall contain such information as the
8licensors require. Application for sales finance company licenses shall contain such
9information as the division of banking requires. No motor vehicle dealer or sales
10finance company, unless so licensed, shall be permitted to register or receive or use
11registration plates under ss. 341.47 to 341.57. The department of transportation
12shall transmit the duplicate copy of each application for a dealer's license to the
13division of banking with the fee required under
par. (d) 8. sub. (14) (g). The division
14of banking may not refund the fee required under
par. (d) 8. sub. (14) (g). The division
15of banking shall approve a sales finance company license for a dealer if no prior sales
16finance company license has been suspended or revoked, and if the applicant meets
17the requirements of
this section ss. 218.0101 to 218.0163 relating to sales finance
18companies.
SB99, s. 101
19Section
101. 218.01 (2) (ie) of the statutes is renumbered 218.0114 (21e) and
20amended to read:
SB99,39,521
218.0114
(21e) (a) In addition to any other information required under this
22subsection section, an application by an individual for the issuance or renewal of a
23license described in
par. (d) sub. (14) shall include the individual's social security
24number and an application by a person who is not an individual for the issuance or
25renewal of a license described in
par. (d) 1., 2., 3. or 5. sub. (14) (a), (b), (c) or (e) shall
1include the person's federal employer identification number. The licensor may not
2disclose any information received under this
subdivision paragraph to any person
3except the department of
industry, labor and job development workforce
4development for purposes of administering s. 49.22 or the department of revenue for
5the sole purpose of requesting certifications under s. 73.0301.
SB99,39,86
(b) The licensor shall deny an application for the issuance or renewal of a
7license if the information required under
subd. 1.
par. (a) is not included in the
8application.
SB99, s. 102
9Section
102. 218.01 (2) (ig) of the statutes is renumbered 218.0114 (21g), and
10218.0114 (21g) (a) (intro.) and (b), as renumbered, are amended to read:
SB99,39,1311
218.0114
(21g) (a) (intro.) In addition to any other information required under
12this
subsection section, an application for a license described in
par. (dr) sub. (16)
13shall include the following:
SB99,39,1514
(b) The licensor may not disclose any information received under
subd. 1. par.
15(a) to any person except as follows:
SB99,39,1816
1. The licensor may disclose information under
subd. 1. par. (a) to the
17department of revenue for the sole purpose of requesting certifications under s.
1873.0301.
SB99,39,2119
2. The licensor may disclose information under
subd. 1. a. par. (a) 1. to the
20department of
industry, labor and job development
workforce development in
21accordance with a memorandum of understanding under s. 49.857.
SB99, s. 103
22Section
103. 218.01 (2) (j) of the statutes is renumbered 218.0114 (22) and
23amended to read:
SB99,40,3
1218.0114
(22) A motor vehicle dealer licensed in accordance with the provisions
2of
this section ss. 218.0101 to 218.0163 shall make reports to the licensor at such
3intervals and showing such information as the licensor may require.
SB99, s. 104
4Section
104. 218.01 (2) (k) of the statutes is renumbered 218.0114 (23).
SB99, s. 105
5Section
105. 218.01 (2a) (title) of the statutes is renumbered 218.0119 (title).
SB99, s. 106
6Section
106. 218.01 (2a) (a) of the statutes is renumbered 218.0119 (1).
SB99, s. 107
7Section
107. 218.01 (2a) (b) of the statutes is renumbered 218.0119 (2) and
8amended to read:
SB99,40,129
218.0119
(2) Whenever a licensed dealer, distributor, manufacturer or
10transporter opens a new place of business, the licensee shall promptly report
such 11that fact, including the address
thereof of the new place of business, to the
12department of transportation.
SB99, s. 108
13Section
108. 218.01 (2a) (c) of the statutes is renumbered 218.0119 (3) and
14amended to read:
SB99,40,2215
218.0119
(3) Whenever a licensed dealer, distributor or manufacturer
16discontinues or disposes of his or her business,
such person that dealer, distributor
17or manufacturer shall promptly report
such that fact to the department of
18transportation and return the license and registration plates issued. Whenever a
19licensed dealer, distributor or manufacturer discontinues business due to license
20suspension or revocation,
such person that dealer, distributor or manufacturer shall
21surrender the licenses and registration plates to the department of transportation
22for
such the suspension or revocation period.
SB99, s. 109
23Section
109. 218.01 (2a) (d) of the statutes is renumbered 218.0119 (4) and
24amended to read:
SB99,41,3
1218.0119
(4) Any dealer, distributor, manufacturer or transporter who fails to
2comply with the requirements of this
subsection section may be fined not more than
3$200 or imprisoned
for not more than 6 months or both.
SB99, s. 110
4Section
110. 218.01 (2c) of the statutes is renumbered 218.0121 and amended
5to read:
SB99,41,9
6218.0121 Factory stores. A manufacturer, importer or distributor, or a
7subsidiary
thereof of a manufacturer, importer or distributor, shall not own, operate
8or control a motor vehicle dealership in this state. This
subsection section does not
9prohibit any of the following:
SB99,41,13
10(1) The ownership and operation by a manufacturer, importer or distributor,
11or a subsidiary
thereof of a manufacturer, importer or distributor, of a dealership for
12a temporary period, not to exceed one year, during the transition from one owner or
13operator to another.
SB99,41,21
14(2) The ownership or control of a dealership by a manufacturer, importer or
15distributor, or a subsidiary
thereof of a manufacturer, importer or distributor, if the
16dealership is being sold under a bona fide contract or purchase option to the operator
17of the dealership, or a contract exists under which the operator of the dealership can
18expect to acquire full ownership of or a controlling interest in the dealership, and
19after the transfer of ownership is completed the dealership will no longer be owned,
20operated or controlled by the manufacturer, importer or distributor, or a subsidiary
21thereof of the manufacturer, importer or distributor.
SB99,42,4
22(3) The ownership, operation or control of a dealership by a manufacturer,
23importer or distributor, or subsidiary
thereof of a manufacturer, importer or
24distributor, which does not meet the conditions under
par. (a) or (b) sub. (1) or (2), if
25the division of hearings and appeals determines, after a hearing on the matter at the
1request of any party, that there is no prospective independent dealer available to own
2and operate the dealership in a manner consistent with the public interest and that
3meets the reasonable standard and uniformly applied qualifications of the
4manufacturer, importer or distributor.
SB99, s. 111
5Section
111. 218.01 (2d) of the statutes is renumbered 218.0122 and amended
6to read:
SB99,42,18
7218.0122 Damages to delivered vehicles.
(1) A manufacturer, importer or
8distributor shall disclose in writing to a motor vehicle dealer, at or before delivery to
9the dealer, any damage and repair to a new motor vehicle occurring after the
10manufacturing process is complete but before delivery to the dealer, if the cost of the
11repair exceeds 6% of the manufacturer's suggested retail price, as measured by retail
12repair costs. Replacement of glass, tires, bumpers, fenders, moldings, audio
13equipment, instrument panels, hoods and deck lids with identical manufacturer's
14original equipment is not considered damage and repair under this
paragraph 15subsection. If a manufacturer, importer or distributor fails to make a disclosure of
16damage and repair under this
paragraph subsection, it shall be liable to the dealer
17for any liability imposed on the dealer for a failure on the part of the dealer to disclose
18that damage and repair.
SB99,43,5
19(2) If the cost of repairing damage to a new motor vehicle that occurs before
20delivery to the dealer's location exceeds 6% of the manufacturer's suggested retail
21price, as measured by retail repair costs, the dealer may reject or, if title has passed
22to the dealer, require the manufacturer, importer or distributor who delivered the
23vehicle to repurchase the vehicle within 10 business days after delivery, unless the
24damage occurred during shipment and the method of transportation, carrier or
25transporter of the motor vehicle was designated by the motor vehicle dealer. Upon
1repurchase, the manufacturer, importer or distributor shall be subrogated to all of
2the dealer's rights against the carrier or transporter of the motor vehicle regarding
3damage. The cost of repairing glass, tires, bumpers, moldings and audio equipment
4with identical manufacturer's original equipment shall not be included in
5determining the cost of repairing damage under this
paragraph subsection.
SB99,43,7
6(3) This
subsection section does not apply to motorcycles that are delivered in
7a crated, disassembled condition to the dealer or the dealer's agent.
SB99, s. 112
8Section
112. 218.01 (2f) of the statutes is renumbered 218.0123.
SB99, s. 113
9Section
113. 218.01 (2g) of the statutes is renumbered 218.0124.
SB99, s. 114
10Section
114. 218.01 (2w) (title) of the statutes is renumbered 218.0125 (title).
SB99, s. 115
11Section
115. 218.01 (2w) (a) of the statutes is renumbered 218.0125 (1) and
12amended to read:
SB99,43,1513
218.0125
(1) In this
subsection section, "dealer cost" means the wholesale cost
14for a part as listed in the manufacturer's, importer's or distributor's current price
15schedules or, if the part is not so listed, the dealer's original invoice cost for the part.
SB99, s. 116
16Section
116. 218.01 (2w) (b) of the statutes is renumbered 218.0125 (2).
SB99, s. 117
17Section
117. 218.01 (2w) (c) of the statutes is renumbered 218.0125 (3) and
18amended to read:
SB99,44,519
218.0125
(3) To be eligible for compensation for parts under
par. (b) sub. (2),
20a dealer shall notify the manufacturer, importer or distributor in writing of the
21amounts that the dealer charges its other retail service customers for parts and
22request that it be paid for parts in accordance with this
subsection section. The notice
23may be limited to the dealer's average markup over dealer cost that the dealer
24charges its other retail service customers for parts used to perform similar work. The
25notice shall be served upon the manufacturer, importer or distributor not less than
130 days before the date on which the dealer requests that the manufacturer, importer
2or distributor begin paying the dealer for parts at the stated amounts. The
3manufacturer, importer or distributor shall pay the dealer, as provided in this
4subsection section, at the amounts stated in the dealer notice for parts used in work
5performed on and after the beginning date stated in the notice.
SB99, s. 118
6Section
118. 218.01 (2w) (d) of the statutes is renumbered 218.0125 (4).
SB99, s. 119
7Section
119. 218.01 (2w) (e) of the statutes is renumbered 218.0125 (5) and
8amended to read:
SB99,44,159
218.0125
(5) A manufacturer, importer or distributor who fails to compensate
10a dealer for parts at an amount not less than the amount the dealer charges its other
11retail service customers for parts used to perform similar work shall not be found to
12have violated this
subsection section if the manufacturer, importer or distributor
13shows that the amount is not reasonably competitive to the amounts charged to retail
14service customers by other similarly situated franchised motor vehicle dealers in this
15state for the same parts when used by those dealers to perform similar work.
SB99, s. 120
16Section
120. 218.01 (2w) (f) of the statutes is renumbered 218.0125 (6) and
17amended to read:
SB99,45,718
218.0125
(6) If a manufacturer, importer or distributor furnishes a part to a
19dealer at no cost for use by the dealer in performing work for which the manufacturer,
20importer or distributor is required to compensate the dealer under this
subsection 21section, the manufacturer, importer or distributor shall compensate the dealer for
22the part at an amount not less than the amount the dealer charges its other retail
23customers for parts when used to perform similar work less the wholesale cost for
24such the furnished part as listed in the manufacturer's current price schedules. A
25manufacturer, importer or distributor may pay the dealer a reasonable handling fee
1instead of the compensation otherwise required by this
subsection section for special
2high-performance complete engine assemblies furnished to the dealer at no cost,
3provided that the manufacturer, importer or distributor excludes special
4high-performance complete engine assemblies in determining whether the amounts
5requested in the dealer's notice are consistent with the amounts that the dealer
6charges its other retail service customers for parts used by the dealer to perform
7similar work.
SB99, s. 121
8Section
121. 218.01 (2w) (g) of the statutes is renumbered 218.0125 (7) and
9amended to read:
SB99,45,2310
218.0125
(7) A claim made by a franchised motor vehicle dealer for
11compensation under this
subsection section shall be either approved or disapproved
12within 30 days after the claim is submitted to the manufacturer, importer or
13distributor in the manner and on the forms the manufacturer, importer or distributor
14reasonably prescribes. An approved claim shall be paid within 30 days after its
15approval
; and, if. If a claim is not specifically disapproved in writing or by electronic
16transmission within 30 days after the date on which the manufacturer, importer or
17distributor receives it, the claim shall be considered to be approved and payment
18shall follow within 30 days. A manufacturer, importer or distributor retains the right
19to audit claims for a period of one year after the date on which the claim is paid and
20to charge back any amounts paid on claims that are false or unsubstantiated. If there
21is evidence of fraud, this
paragraph subsection does not limit the right of the
22manufacturer to audit for longer periods and charge back for any fraudulent claim,
23subject to the limitations period under s. 893.93 (1) (b).
SB99, s. 122
24Section
122. 218.01 (2x) of the statutes is renumbered 218.0126 and amended
25to read:
SB99,46,15
1218.0126 Promotional allowances. A claim made by a franchised motor
2vehicle dealer for promotional allowances or other incentive payments shall be either
3approved or disapproved within 30 days after the claim is submitted to the
4manufacturer, importer or distributor in the manner and on the forms the
5manufacturer, importer or distributor reasonably prescribes. An approved claim
6shall be paid within 30 days after its approval
; and, if. If a claim is not specifically
7disapproved in writing or by electronic transmission within 30 days after the date
8on which the manufacturer, importer or distributor receives it, the claim shall be
9considered to be approved and payment shall follow within 30 days after approval.
10A manufacturer, importer or distributor retains the right to audit a claim for a period
11of 2 years after the date on which the claim is paid and to charge back any amounts
12paid on claims that are false or unsubstantiated. If there is evidence of fraud, this
13subsection section does not limit the right of the manufacturer to audit for longer
14periods and charge back for any fraudulent claim, subject to the limitations period
15under s. 893.93 (1) (b).
SB99, s. 123
16Section
123. 218.01 (3) (title) of the statutes is renumbered 218.0116 (title).
SB99, s. 124
17Section
124. 218.01 (3) (a) (intro.) of the statutes is renumbered 218.0116 (1)
18(intro.).
SB99, s. 125
19Section
125. 218.01 (3) (a) 1. of the statutes is renumbered 218.0116 (1) (a).
SB99, s. 126
20Section
126. 218.01 (3) (a) 2. of the statutes is renumbered 218.0116 (1) (am).
SB99, s. 127
21Section
127. 218.01 (3) (a) 3. of the statutes is renumbered 218.0116 (1) (b).
SB99, s. 128
22Section
128. 218.01 (3) (a) 4. of the statutes is renumbered 218.0116 (1) (bm)
23and amended to read:
SB99,47,3
1218.0116
(1) (bm) Wilful failure to comply with any provision of
this section ss.
2218.0101 to 218.0163 or any rule or regulation promulgated by the licensor under
3this section ss. 218.0101 to 218.0163.
SB99, s. 129
4Section
129. 218.01 (3) (a) 5. of the statutes is renumbered 218.0116 (1) (c).
SB99, s. 130
5Section
130. 218.01 (3) (a) 6. of the statutes is renumbered 218.0116 (1) (cm).
SB99, s. 131
6Section
131. 218.01 (3) (a) 7. of the statutes is renumbered 218.0116 (1) (d).
SB99, s. 132
7Section
132. 218.01 (3) (a) 8. of the statutes is renumbered 218.0116 (1) (dm).
SB99, s. 133
8Section
133. 218.01 (3) (a) 9. of the statutes is renumbered 218.0116 (1) (e).
SB99, s. 134
9Section
134. 218.01 (3) (a) 10. and 11. of the statutes are renumbered 218.0116
10(1) (em) and (f) and amended to read:
SB99,47,1411
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.
SB99,47,1615
(f) Having
indulged engaged in any unconscionable practice relating to
said the
16licensed 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.
SB99, s. 135
17Section
135. 218.01 (3) (a) 12. of the statutes is renumbered 218.0116 (1) (fm).
SB99, s. 136
18Section
136. 218.01 (3) (a) 13. of the statutes is renumbered 218.0116 (1) (g)
19and amended to read:
SB99,47,2220
218.0116
(1) (g) Having sold a retail instalment contract or consumer lease to
21a sales finance company
that is not licensed
hereunder under ss. 218.0101 to
22218.0163.
SB99, s. 137
23Section
137. 218.01 (3) (a) 14. of the statutes is renumbered 218.0116 (1) (gm).
SB99, s. 138
1Section
138. 218.01 (3) (a) 15. of the statutes is renumbered 218.0116 (1) (h)
2and amended to read:
SB99,48,93
218.0116
(1) (h) Being a manufacturer, importer or distributor who has coerced
4or attempted to coerce any motor vehicle dealer to order any commodity or service
5or to accept delivery of or pay for any commodity or service that the motor vehicle
6dealer has not ordered. This
subdivision paragraph does not modify or prohibit
7reasonable requirements in a franchise agreement that require a dealer to market
8and service a representative line of new motor vehicles that the manufacturer,
9importer or distributor is publicly advertising.
SB99, s. 139
10Section
139. 218.01 (3) (a) 16. of the statutes is renumbered 218.0116 (1) (hm)
11and amended to read:
SB99,48,2012
218.0116
(1) (hm) Being a manufacturer of motor vehicles, factory branch,
13distributor, field representative, officer, agent or any representative
whatsoever of
14such a motor vehicle manufacturer or factory branch, who has attempted to induce
15or coerce, or has induced or coerced, any motor vehicle dealer to enter into any
16agreement with
such the manufacturer, factory branch or representative
thereof of
17the motor vehicle manufacturer or factory branch, or to do any other act unfair to
said 18the dealer, by threatening to cancel any franchise existing between
such the 19manufacturer, factory branch or representative
thereof
of the motor vehicle
20manufacturer or factory branch and
said the dealer.
SB99, s. 140
21Section
140. 218.01 (3) (a) 17. of the statutes is renumbered 218.0116 (1) (i)
222. and amended to read:
SB99,49,1623
218.0116
(1) (i) 2. Subject to
sub. (3n) s. 218.0132, being a manufacturer,
24importer or distributor who has unfairly, without due regard to the equities or
25without just provocation, directly or indirectly canceled or failed to renew the
1franchise of any motor vehicle dealer; or being a manufacturer or importer, who has
2unfairly, without due regard to the equities or without just provocation, directly or
3indirectly canceled or failed to renew the franchise of any distributor. If there is a
4change in a manufacturer, importer or distributor, a motor vehicle dealer's franchise
5granted by the former manufacturer, importer or distributor shall continue in full
6force and operation under the new manufacturer, importer or distributor unless a
7mutual agreement of cancellation is filed with the department of transportation
8between the new manufacturer, importer or distributor and the dealer.
In this
9subdivision, "due regard to the equities" means treatment in enforcing an agreement
10that is fair and equitable to a motor vehicle dealer or distributor and that is not
11discriminatory compared to similarly situated dealers or distributors; and "just
12provocation" means a material breach by a motor vehicle dealer or distributor, due
13to matters within the dealer's or distributor's control, of a reasonable and necessary
14provision of an agreement and the breach is not cured within a reasonable time after
15written notice of the breach has been received from the manufacturer, importer or
16distributor.
Note: The stricken definitions are recreated by this bill as s. 218.0116 (1) (i) 1. for
proper location according to current style.
SB99, s. 141
17Section
141. 218.01 (3) (a) 18. of the statutes is renumbered 218.0116 (1) (im)
182. and amended to read:
SB99,50,619
218.0116
(1) (im) 2. Having accepted an order or contract of purchase from a
20buyer or a consumer lease or prelease agreement from a lessee or prospective lessee
21if
such the arrangement results in the practice of bushing.
For the purpose of this
22section, "bushing" means, with respect to an order or contract of purchase, the
23practice of increasing the selling price of a motor vehicle above that originally quoted
1the purchaser as evidenced by a purchase order or contract which has been signed
2by both the purchaser and dealer licensee and, with respect to a consumer lease or
3prelease agreement, the practice of increasing the gross capitalized cost above that
4originally quoted the lessee or prospective lessee as evidenced by a consumer lease
5or prelease agreement which has been signed by both the lessee or prospective lessee
6and 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.
SB99, s. 142
7Section
142. 218.01 (3) (a) 19. of the statutes is renumbered 218.0116 (1) (j).
SB99, s. 143
8Section
143. 218.01 (3) (a) 20. of the statutes is renumbered 218.0116 (1) (jm)
9and amended to read:
SB99,50,1610
218.0116
(1) (jm) Having set up, promoted or aided in the promotion of a plan
11by which motor vehicles are sold or leased to a person for a consideration and upon
12the further consideration that the purchaser or lessee agrees to secure one or more
13persons to participate in the plan by respectively making a similar purchase or lease
14and in turn agreeing to secure one or more persons likewise to join in
said the plan,
15each purchaser or lessee being given the right to secure money, credits, goods or
16something of value, depending upon the number of persons joining in the plan.