SB99,85,223
218.0152
(3) The licensor may
make
promulgate such rules
and regulations as
24it shall deem as it considers necessary or proper for the effective administration and
25enforcement of
this section ss. 218.0101 to 218.0163, but no licensee shall be subject
1to examination or audit by the licensor except as provided in
sub. (3) (d) s. 218.0116
2(5).
SB99, s. 254
3Section
254. 218.01 (5m) (title) of the statutes is renumbered 218.0141 (title).
SB99, s. 255
4Section
255. 218.01 (5m) (a) of the statutes is renumbered 218.0141 and
5amended to read:
SB99,85,8
6218.0141 No contract for the sale of a motor vehicle shall contain a clause
7which, upon nonacceptance of the vehicle by the buyer, would subject the buyer to
8a penalty greater than 5
per cent percent of the cash price of the vehicle.
SB99, s. 256
9Section
256. 218.01 (6) (title) of the statutes is renumbered 218.0142 (title).
SB99, s. 257
10Section
257. 218.01 (6) (a) of the statutes is renumbered 218.0142 (1).
SB99, s. 258
11Section
258. 218.01 (6) (b) of the statutes is renumbered 218.0142 (2) (a)
12(intro.) and amended to read:
SB99,85,1513
218.0142
(2) (a) (intro.) Prior to or concurrent with any instalment sale, the
14seller shall deliver to the buyer a written statement
clearly describing
clearly the all
15of the following:
SB99,85,16
161. The motor vehicle sold to the buyer
, the.
SB99,85,17
172. The cash sale price
, the.
SB99,85,18
183. The cash paid down by the buyer
, the.
SB99,85,19
194. The amount credited the buyer for any trade-in
and a.
SB99,85,20
205. A description of the trade-in,
the
.
SB99,85,21
215m. The cost to the retail buyer of any insurance
, the.
SB99,85,23
226. The amount financed
, which may include the cost of insurance
, and sales and
23use taxes
, the.
SB99,85,24
247. The amount of the finance charge
, the.
SB99,85,25
258. The amount of any other charge specifying its purpose
, the.
SB99,86,1
19. The total of payments due from the buyer
, the.
SB99,86,3
210. The terms of
the payment of
such the total
, the of payments due from the
3buyer.
SB99,86,5
411. The amount and date of each payment necessary
finally to pay the total
and
5a finally.
SB99,86,6
612. A summary of any insurance coverage to be effected.
SB99,86,8
7(b) The division of banking may determine the form of the statement
required
8under par. (a).
SB99,86,11
9(c) If a written order is taken from a prospective purchaser in connection with
10any instalment sale, the written statement
described in par. (a) shall be given to the
11purchaser prior to or concurrent with the signing of the order by the purchaser.
SB99, s. 259
12Section
259. 218.01 (6) (bp) of the statutes is renumbered 218.0142 (3).
SB99, s. 260
13Section
260. 218.01 (6) (c) of the statutes is renumbered 218.0142 (4) and
14amended to read:
SB99,86,2215
218.0142
(4) An exact copy of the instalment sale contract and any note or notes
16given in connection
therewith with the contract shall be furnished by the seller to the
17buyer at the time the buyer signs
such the contract. The buyer's copy of the contract
18shall contain the signature of the seller identical with the signature on the original
19contract. No contract shall be signed in blank except that a detailed description of
20the motor vehicle including the serial number or other identifying marks of the
21vehicle sold which are not available at the time of execution of
such the contract may
22be filled in before final delivery of the motor vehicle.
SB99, s. 261
23Section
261. 218.01 (6) (d) of the statutes is renumbered 218.0142 (5) and
24amended to read:
SB99,87,4
1218.0142
(5) A violation of
par. (a), (b) or (bp) sub. (1), (2) or (3) bars recovery
2of any finance charge by the seller, or an assignee of the seller who, at the time of the
3assignment, had knowledge of the violation, in any suit upon a sales contract arising
4from the sale where the violation occurred.
SB99, s. 262
5Section
262. 218.01 (6) (e) of the statutes is renumbered 218.0142 (6) (a)
6(intro.) and amended to read:
SB99,87,97
218.0142
(6) (a) (intro.)
Prior to 30 days after acquisition of any retail
8instalment contract from a retail seller, every finance company shall
mail do all of
9the following:
SB99,87,11
101. Mail or deliver to the retail buyer a written notice that
it the finance company 11has acquired the retail instalment contract from the retail seller
, and shall also mail.
SB99,87,16
122. Mail or cause to be mailed with the notice
described in subd. 1. a statement
13of the particulars of the retail instalment contract price required under
par. (b) sub.
14(2) to be stated by the retail seller, in accordance with the finance company's records
15respecting
such the particulars
of the retail instalment contract, including the
16amount of the finance charge.
SB99,87,23
17(b) Every finance company, if insurance is provided by
it the finance company,
18shall also within
the 30 days
after acquisition of the retail instalment contract send
19or cause to be sent to the retail buyer a policy of insurance clearly setting forth the
20exact nature of the insurance coverage and the amount of the premiums, each stated
21separately, which shall be filed with the commissioner of insurance in accordance
22with ch. 625. The cancellation and rewriting of any
such policy
provided by the
23finance company shall comply with the requirements of s. 631.69.
SB99, s. 263
24Section
263. 218.01 (6) (em) of the statutes is renumbered 218.0142 (7) and
25amended to read:
SB99,88,5
1218.0142
(7) In the event that the dealer shall finance the instalment sale
2contract, the division of banking may permit the dealer to combine the information
3required by
pars. (b) and (e) last above subs. (2) and (6) in one statement under
such 4rules
and regulations as that the division of banking may from time to time
prescribe 5promulgate.
Note: Modernizes language in accordance with current drafting style and usage.
SB99, s. 264
6Section
264. 218.01 (6) (f) of the statutes is renumbered 218.0142 (8) and
7amended to read:
SB99,88,148
218.0142
(8) Any retail buyer of a motor vehicle
, resident in the state of
9Wisconsin, at the time of purchase, under a retail instalment contract
, who is a
10resident of this state at the time of purchase shall have a valid defense in any action
11or proceeding at law to enforce
said the contract by any finance company
that is not
12licensed
hereunder and which has purchased or otherwise acquired
such the 13contract
, if
such the finance company has wilfully failed or refused to comply with
14par. (e) sub. (6).
SB99, s. 265
15Section
265. 218.01 (6) (g) of the statutes is renumbered 218.0142 (9) (intro.)
16and amended to read:
SB99,88,2217
218.0142
(9) (intro.)
Any retail buyer of a motor vehicle
, resident of the state
18of Wisconsin at the time of purchase, under a retail instalment contract made in this
19state
, who is a resident of this state at the time of purchase shall have a valid defense
20against the recovery of the principal, finance charge and other fees included in the
21contract
, in any action or proceeding at law to enforce the contract by any person who
22has purchased or otherwise acquired the contract
, if
all of the
following are true:
SB99,89,3
1(a) The person
who acquired the contract has failed or refused prior to the
2purchase or acquisition to be licensed as a sales finance company under
this section,
3and the ss. 218.0101 to 218.0163.
SB99,89,5
4(b) The person
who acquired the contract is actually engaged in business, in
5whole or in part as a sales finance company.
SB99, s. 266
6Section
266. 218.01 (6) (h) of the statutes is renumbered 218.0142 (10) and
7amended to read:
SB99,89,108
218.0142
(10) All transactions which constitute consumer transactions (s.
9421.301 (13)) are subject to chs. 421 to 427, in addition to
this section ss. 218.0101
10to 218.0163.
SB99, s. 267
11Section
267. 218.01 (6) (k) of the statutes is renumbered 218.0142 (11) and
12amended to read:
SB99,89,1613
218.0142
(11) This
subsection section does not apply to a retail instalment sale
14of a motor vehicle made on or after November 1, 1981, if the motor vehicle is to be used
15primarily for business or commercial purposes and not for the buyer's personal,
16family or household use.
SB99, s. 268
17Section
268. 218.01 (6m) of the statutes is renumbered 218.0143 and amended
18to read:
SB99,89,25
19218.0143 Notice of insurance to buyer under instalment sales contract.
20(1) Whenever a person sells or agrees to sell any motor vehicle at retail under a retail
21instalment contract
wherein provision is made provides for insurance coverage, or
22a charge is made
therefor, such for insurance coverage, the policy so issued or
23provided for
, shall include public liability coverage protecting the driver of
such the 24motor vehicle against damages resulting from the negligent use
thereof, or of the
25vehicle.
SB99,90,5
1(2) Whenever a person sells or agrees to sell any motor vehicle at retail under
2a retail instalment contract which does not provide for insurance coverage the seller
3shall, in writing, notify the buyer at the time of making
such the retail instalment 4contract that the motor vehicle is not covered by public liability insurance protecting
5the driver against damages resulting from the negligent use
thereof of the vehicle.
SB99,90,9
6(3) The seller shall obtain, on a form separate from the retail instalment
7contract, the signed acknowledgment of the buyer that he or she has been notified
8that the contract does or does not include
such public liability insurance
protecting
9the driver against damages resulting from the negligent use of the vehicle.
SB99, s. 269
10Section
269. 218.01 (6x) of the statutes is renumbered 218.0144, and 218.0144
11(4), as renumbered, is amended to read:
SB99,90,1812
218.0144
(4) A prospective lessor may cancel a prelease agreement that, with
13regard to the lease terms disclosed in the prelease agreement, is contingent upon
14approval of the prospective lessee's credit by a sales finance company to whom the
15prospective lessor intends to assign the consumer lease, if the prelease agreement
16contains a provision requiring the prospective lessor to give the prospective lessee
17written notice of
such the cancellation within 10 business days of execution of the
18prelease agreement and the notice is given to the prospective lessee.
SB99, s. 270
19Section
270. 218.01 (7) of the statutes is renumbered 218.0145 and amended
20to read:
SB99,91,5
21218.0145 Prohibited acts. (1) No manufacturer
of motor vehicles, no
22wholesaler or distributor
of motor vehicles, and no officer, agent or representative of
23either a manufacturer, wholesaler or distributor, shall induce or coerce, or attempt
24to induce or coerce, any retail motor vehicle dealer or prospective retail motor vehicle
25dealer in this state to sell, assign or transfer any retail instalment sales contract,
1obtained by
such the dealer in connection with the sale by the dealer in this state of
2motor vehicles manufactured or sold by
such the manufacturer, wholesaler or
3distributor, to a specified sales finance company or class of
such sales finance 4companies, or to any other specified person, by any of the
following acts or means
5hereinafter set forth, namely:
SB99,91,96
(a) By any
express or implied statement, suggestion, promise or threat
, made
7directly or indirectly, that
such the manufacturer, wholesaler or distributor will in
8any manner benefit or injure
such the dealer
, whether such statement, suggestion,
9threat or promise is express or implied, or made directly or indirectly.
SB99,91,1010
(b) By any act that will benefit or injure
such
the dealer.
SB99,91,1711
(c) By any contract, or any express or implied offer of contract, made directly
12or indirectly to
such the dealer, for handling
such motor vehicles
manufactured or
13sold by the manufacturer, wholesaler or distributor, on the condition that
such the 14dealer sell, assign or transfer the dealer's retail instalment
contract thereon 15contracts on motor vehicles manufactured or sold by the manufacturer, wholesaler
16or distributor, in this state, to a specified sales finance company or class of
such sales
17finance companies, or to any other specified person.
SB99,91,2518
(d) By any express or implied statement or representation, made directly or
19indirectly, that
such the dealer is under any obligation
whatsoever to sell, assign or
20transfer any of the dealer's retail sales contracts, in this state, on motor vehicles
21manufactured or sold by
such the manufacturer, wholesaler or distributor to
such a 22sales finance company, or class of
sales finance companies, or other specified person,
23because of any relationship or affiliation between
such the manufacturer, wholesaler
24or distributor and
such the sales finance company or companies or
such the specified
25person or persons.
SB99,92,3
1(2) Any
such statements, threats, promises, acts, contracts or offers of
2contracts, set forth in
par. (a) sub. (1) are declared unfair trade practices and unfair
3competition and against the policy of this state, are unlawful and are prohibited.
SB99,92,8
4(3) No sales finance company, and no officer, agent or representative
thereof 5of a sales finance company, shall induce or coerce or attempt to induce or coerce any
6retail motor vehicle dealer to transfer to
such the sales finance company any of the
7dealer's retail instalment sales contracts in this state
of such dealer on any motor
8vehicle by any of the following acts or means
, namely:
SB99,92,139
(a) By any statement or representation, express or implied, made directly or
10indirectly, that the manufacturer, wholesaler or distributor of
such the motor
11vehicles will grant
such the dealer a franchise to handle
such the manufacturer's,
12wholesaler's or distributor's motor vehicles if
such the dealer
shall will sell, assign
13or transfer all or part of such retail sales contracts to such sales finance company.
SB99,92,1814
(b) By any statement or representation, express or implied, made directly or
15indirectly, that the manufacturer, wholesaler or distributor
of such motor vehicles 16will in any manner benefit or injure
such the dealer if
such the dealer
shall does or
17shall does not sell, assign or transfer all or part of
such the dealer's retail sales
18contracts to
such the sales finance company.
SB99,92,2519
(c) By an express or implied statement or representation made directly or
20indirectly, that there is an express or implied obligation on the part of
such the dealer
21to so sell, assign or transfer all or part of
such
the dealer's retail sales contracts on
22such the manufacturer's, wholesaler's or distributor's motor vehicles to
such the 23sales finance company because of any relationship or affiliation between
such the 24sales finance company and the manufacturer, wholesaler or distributor
of such motor
25vehicles.
SB99,93,3
1(4) Any
such statement statements or representations set forth in
par. (c)
sub.
2(3) are declared to be unfair trade practices
and
, unfair competition and against the
3policy of this state,
and are unlawful and are prohibited.
SB99,93,8
4(5) Any retail motor vehicle dealer who, pursuant to any inducement,
5statement, promise or threat
hereinbefore declared unlawful
under this section,
6shall sell, assign or transfer any or all of the dealer's retail instalment contracts shall
7not be guilty of any unlawful act and may be compelled to testify to each such
8unlawful act.
SB99,93,19
9(6) No manufacturer shall directly or indirectly pay or give, or contract to pay
10or give, anything of service or value to any sales finance company licensee in this
11state, and no
such sales finance company licensee in this state shall accept or receive
12or contract or agree to accept or receive directly or indirectly any payment or
thing
13of service
of or value from any manufacturer, if the effect of the payment or
the giving
14of
any such the thing of service or value by the manufacturer, or the acceptance or
15receipt
thereof of the payment or thing of service or value by the sales finance
16company licensee, may be to lessen or eliminate competition or tend to grant an
17unfair trade advantage or create a monopoly in the
sales finance company licensee
18who accepts or receives the payment, thing or service of value or contracts or agrees
19to accept or receive the same.
Note: Manufacturer, wholesaler and distributor are defined under s. 218.0101, as
renumbered by this bill, as manufacturer, wholesalers and distributors of motor vehicles.
Redundant and superfluous language is deleted.
SB99, s. 271
20Section
271. 218.01 (7a) of the statutes is renumbered 218.0146.
SB99, s. 272
21Section
272. 218.01 (7b) (title) of the statutes is renumbered 218.0147 (title).
SB99, s. 273
22Section
273. 218.01 (7b) of the statutes is renumbered 218.0147 (1) and
23amended to read:
SB99,94,11
1218.0147
(1) No minor
shall
may purchase or lease any motor vehicle unless
2the minor, at the time of purchase or lease, submits to the seller or lessor a statement
3verified before a person authorized to administer oaths and made and signed by
4either parent of the purchaser or lessee, if
such
the signing parent has custody of the
5minor or, if neither parent has custody, then by the person having custody, setting
6forth that the purchaser or lessee has consent to purchase or lease the vehicle. The
7signature on the statement shall not impute any liability for the purchase price of
8the motor vehicle or for any payments under the consumer lease to the consenting
9person. The statement shall not adversely affect any other arrangement for the
10assumption of liability for the purchase price or any lease payments which the
11consenting person may make.
SB99,94,18
12(2) If a motor vehicle is purchased by a minor, the signed statement
described
13in sub. (1) shall accompany the application for a certificate of title and shall be filed
14by the department of transportation with the application. Failure to obtain the
15consent or to forward it, together with the application for a certificate of title in the
16event of the purchase of a motor vehicle, shall not void the contract of sale or
17consumer lease of a motor vehicle in the hands of an innocent holder, without notice,
18for value and in the ordinary course of business.
SB99,94,21
19(3) Any person who sells or leases a motor vehicle to a minor with knowledge
20of
such that fact without procuring
such a the statement
described in sub. (1) may
21be fined not more than $200 or imprisoned
for not more than 6 months or both.
SB99, s. 274
22Section
274. 218.01 (7m) (title) of the statutes is renumbered 218.0136 (title).
SB99, s. 275
23Section
275. 218.01 (7m) (a) of the statutes is renumbered 218.0136 (1) and
24amended to read:
SB99,95,10
1218.0136
(1) A licensee may not file a complaint or petition with the division
2of hearings and appeals or bring an action under
sub. (9) (a) s. 218.0163 (1), based
3on an alleged violation of
this section ss. 218.0101 to 218.0163 by any other licensee
4or
pursuant to sub. (3) (f) or (fm), (3c) or (3x)
under s. 218.0116 (7) or (8), 218.0131
5or 218.0134, unless the licensee serves a demand for mediation upon the other
6licensee before or contemporaneous with the filing of the complaint or petition or the
7bringing of the action. A demand for mediation shall be in writing and served upon
8the other licensee by certified mail at an address designated for that licensee in the
9licensor's records. The demand for mediation shall contain a brief statement of the
10dispute and the relief sought by the licensee filing the demand.
SB99, s. 276
11Section
276. 218.01 (7m) (b) of the statutes is renumbered 218.0136 (2).
SB99, s. 277
12Section
277. 218.01 (7m) (c) of the statutes is renumbered 218.0136 (3) and
13amended to read:
SB99,96,314
218.0136
(3) The service of a demand for mediation under
par. (a) sub. (1) shall
15stay the time for the filing of any complaint or petition with the division of hearings
16and appeals or for bringing an action under
sub. (9) (a) s. 218.0163 (1), based on an
17alleged violation of
this section ss. 218.0101 to 218.0163 by the other licensee or
18pursuant to sub. (3) (f) or (fm), (3c) or (3x) under s. 218.0116 (7) or (8), 218.0131 or
19218.0134, until the representatives of both licensees have met with a mutually
20selected mediator for the purpose of attempting to resolve the dispute. If a complaint
21or petition is filed before the meeting, the division of hearings and appeals or the
22court shall enter an order suspending the proceeding or action until the meeting has
23occurred and may, upon the written stipulation of all parties to the proceeding or
24action that they wish to continue to mediate under this
subsection section, enter an
25order suspending the proceeding or action for as long a period as the division of
1hearings and appeals or court considers to be appropriate. A suspension order issued
2under this
paragraph subsection may be revoked upon motion of any party or upon
3motion of the division of hearings and appeals or the court.
SB99, s. 278
4Section
278. 218.01 (7m) (d) of the statutes is renumbered 218.0136 (4) and
5amended to read:
SB99,96,96
218.0136
(4) The licensor shall encourage licensees under this
subsection 7section to establish, maintain and administer a panel of mediators who have the
8character, ability and training to serve as mediators and who have knowledge of the
9motor vehicle industry.
SB99, s. 279
10Section
279. 218.01 (7r) of the statutes is renumbered 218.0137 and amended
11to read:
SB99,96,19
12218.0137 Arbitration of disputes between licensees. A manufacturer,
13importer or distributor and a dealer may agree to submit a dispute arising under a
14franchise agreement or under
this section ss. 218.0101 to 218.0163 to binding
15arbitration. Unless agreed otherwise in an agreement that complies with
subs. (2)
16(bm) 2. and (3) (a) 36. d. ss. 218.0114 (9) (b) and 218.0116 (1) (qm) 4., any arbitration
17proceeding shall be voluntary, initiated by serving a written demand for arbitration
18on the other party, and shall be conducted under the provisions of the state of
19Wisconsin arbitration plan administered by representatives of the licensees.
SB99, s. 280
20Section
280. 218.01 (7t) of the statutes is renumbered 218.0138 and amended
21to read:
SB99,97,3
22218.0138 Immunity and presumption of good faith. A mediator or
23arbitrator is immune from civil liability for any good faith act or omission within the
24scope of the mediator's or arbitrator's performance of his or her powers and duties
25under
sub. (7m) s. 218.0136 or the arbitration plan referred to in
sub. (7r) s. 218.0137.
1Every act or omission of a mediator or arbitrator is presumed to be a good faith act
2or omission. This presumption may be overcome only by clear and convincing
3evidence.
SB99, s. 281
4Section
281. 218.01 (8) of the statutes is renumbered 218.0161 and amended
5to read:
SB99,97,10
6218.0161 Penalties. Except for
sub. (3) (a) 1., 3., 6., 7., 11., 12., 13., 20., 25.,
729. and 30. s. 218.0116 (1) (a), (b), (cm), (d), (f), (fm), (g), (jm), (m), (o) and (om), and
8except for violations for
sub. (2) (a), (2a), (3a) (c) or (7b) s. 218.0114 (1), 218.0117 (3),
9218.0119 or 218.0147, any person violating
this section ss. 218.0101 to 218.0163 may
10be required to forfeit not less than $25 nor more than $500 for each violation.
SB99, s. 282
11Section
282. 218.01 (8m) of the statutes is renumbered 218.0162 and amended
12to read:
SB99,97,17
13218.0162 Commencement of action. Upon the request of the licensor, the
14department of justice or the district attorney may commence an action in the name
15of the state to recover a forfeiture under
sub. (8)
s. 218.0161. An action under
sub.
16(8) s. 218.0161 shall be commenced within 3 years after the occurrence of the
17unlawful act or practice which is the subject of the action.