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.
SB99, s. 144
17Section
144. 218.01 (3) (a) 21. of the statutes is renumbered 218.0116 (1) (k)
18and amended to read:
SB99,51,219
218.0116
(1) (k) Being a dealer who keeps open the dealer's place of business
20on Sunday for the purpose of buying, leasing or selling motor vehicles; but nothing
21in this
subdivision paragraph shall apply to any person who conscientiously believes
22that the 7th day of the week, from sunset Friday to sunset Saturday, should be
23observed as the Sabbath and who actually refrains from conducting or engaging in
1the business of buying, leasing, selling or offering for lease or sale motor vehicles, or
2performing other secular business on that day.
SB99, s. 145
3Section
145. 218.01 (3) (a) 22. of the statutes is renumbered 218.0116 (1) (km)
4and amended to read:
SB99,51,75
218.0116
(1) (km) Being a manufacturer, importer or distributor who violates
6sub. (2c), (2d), (2f), (2g) or (2w) s. 218.0121, 218.0122, 218.0123, 218.0124 or
7218.0125.
SB99, s. 146
8Section
146. 218.01 (3) (a) 23. of the statutes is renumbered 218.0116 (1) (L)
9and amended to read:
SB99,51,1410
218.0116
(1) (L) Being a motor vehicle dealer who, in breach of an agreement,
11voluntarily changes its ownership or executive management, transfers its
12dealership assets to another person, adds another franchise at the same location as
13its existing franchise, or relocates a franchise without first complying with the
14procedures in
sub. (3x) s. 218.0134.
SB99, s. 147
15Section
147. 218.01 (3) (a) 24. of the statutes is renumbered 218.0116 (1) (Lm)
16and amended to read:
SB99,51,2217
218.0116
(1) (Lm) Being a manufacturer, importer or distributor who fails to
18comply with the procedures in
sub. (3x) s. 218.0134 regarding a dealer's request for
19approval of a change of ownership or executive management, transfer of its
20dealership assets to another person, adding another franchise at the same location
21as its existing franchise, or relocation of a franchise or who fails to comply with an
22order of the division of hearings and appeals issued under
sub. (3x) s. 218.0134.
SB99, s. 148
23Section
148. 218.01 (3) (a) 25. of the statutes is renumbered 218.0116 (1) (m).
SB99, s. 149
24Section
149. 218.01 (3) (a) 26. of the statutes is renumbered 218.0116 (1) (mm)
25and amended to read:
SB99,52,8
1218.0116
(1) (mm) Being a manufacturer, factory branch, distributor, field
2representative, officer, agent or any representative of
such a manufacturer, factory
3branch or distributor who, notwithstanding the terms of any agreement, refuses to
4honor the succession to the ownership or operation of a dealership under an existing
5franchise agreement by a designated family member of a deceased or incapacitated
6dealer, except in the manner prescribed by
sub. (3c)
s. 218.0131, or who unreasonably
7withholds its approval of a change of ownership or executive management of the
8dealership after the dealer's death or incapacity.
SB99, s. 150
9Section
150. 218.01 (3) (a) 27. of the statutes is renumbered 218.0116 (1) (n).
SB99, s. 151
10Section
151. 218.01 (3) (a) 28. of the statutes is renumbered 218.0116 (1) (nm)
11and amended to read:
SB99,52,1412
218.0116
(1) (nm) Wilful failure to provide and maintain facilities and business
13records as required by
this section ss. 218.0101 to 218.0163 or by any rule
14promulgated by the licensor pertaining to facility and business records.
SB99, s. 152
15Section
152. 218.01 (3) (a) 29. of the statutes is renumbered 218.0116 (1) (o).
SB99, s. 153
16Section
153. 218.01 (3) (a) 30. of the statutes is renumbered 218.0116 (1) (om).
SB99, s. 154
17Section
154. 218.01 (3) (a) 31. of the statutes is renumbered 218.0116 (1) (p)
18and amended to read:
SB99,52,1919
218.0116
(1) (p) Having violated an order issued under
par. (h) sub. (10).
SB99, s. 155
20Section
155. 218.01 (3) (a) 32. of the statutes is renumbered 218.0116 (1) (pm)
21and amended to read:
SB99,52,2522
218.0116
(1) (pm) Being a manufacturer, factory branch or distributor who
23enters into a franchise agreement establishing or relocating a motor vehicle
24dealership, parts outlet or service outlet in a relevant market area without first
25complying with the procedure in
par. (f) 1. sub. (7) (a).
SB99, s. 156
1Section
156. 218.01 (3) (a) 35. of the statutes is renumbered 218.0116 (1) (q)
2and amended to read:
SB99,53,53
218.0116
(1) (q) Being a manufacturer, factory branch or distributor who
4engages in any action which transfers to a motor vehicle dealer any responsibility of
5the manufacturer, factory branch or distributor under s.
218.015 218.0171.
SB99, s. 157
6Section
157. 218.01 (3) (a) 36. (intro.) of the statutes is renumbered 218.0116
7(1) (qm) (intro.).
SB99, s. 158
8Section
158. 218.01 (3) (a) 36. a. of the statutes is renumbered 218.0116 (1)
9(qm) 1. and amended to read:
SB99,53,1210
218.0116
(1) (qm) 1. Fails to notify the department of transportation of any
11revision or addition to an agreement as required under
sub. (2) (bd) 1. s. 218.0114 (7)
12(a) 2.
SB99, s. 159
13Section
159. 218.01 (3) (a) 36. b. of the statutes is renumbered 218.0116 (1)
14(qm) 2. and amended to read:
SB99,53,1715
218.0116
(1) (qm) 2. Fails to revise or remove portions of an agreement that the
16department of transportation declares to contain provisions which are inconsistent
17with
sub. (2) (bm) s. 218.0114 (9).
SB99, s. 160
18Section
160. 218.01 (3) (a) 36. c. of the statutes is renumbered 218.0116 (1)
19(qm) 3. and amended to read:
SB99,53,2320
218.0116
(1) (qm) 3. Requires or coerces a dealer or distributor to
execute sign 21an agreement, as a condition of obtaining or continuing a franchise, that contains
22provisions that are void or prohibited under
sub. (2) (bm) s. 218.0114 (9) or attempts
23to enforce an agreement with void or prohibited provisions.
SB99, s. 161
24Section
161. 218.01 (3) (a) 36. d. of the statutes is renumbered 218.0116 (1)
25(qm) 4. (intro.) and amended to read: