218.0171(4)(e)
(e) The department of transportation may consider whether a manufacturer obtains certification under this subsection in determining whether to issue a manufacturer's license to do business in this state.
218.0171(5)
(5) This section does not limit rights or remedies available to a consumer under any other law.
218.0171(6)
(6) Any waiver by a consumer of rights under this section is void.
218.0171(7)
(7) In addition to pursuing any other remedy, a consumer may bring an action to recover for any damages caused by a violation of this section. The court shall award a consumer who prevails in such an action twice the amount of any pecuniary loss, together with costs, disbursements and reasonable attorney fees, and any equitable relief the court determines appropriate.
218.0171 History
History: 1983 a. 48;
1985 a. 205 ss.
1m to
6,
8;
1987 a. 105,
169,
323,
403;
1989 a. 31;
1999 a. 31 s.
287; Stats. 1999 s. 218.0171;
2001 a. 45.
218.0171 Cross-reference
Cross Reference: See also ch.
Trans 143, Wis. adm. code.
218.0171 Annotation
An action to recover under sub. (1) (h) 2. was not defeated by the repair of reported nonconformities. Hartlaub v. Coachman Industries, Inc.,
143 Wis. 2d 791,
422 N.W.2d 869 (Ct. App. 1988).
218.0171 Annotation
"Out of service" under sub. (1) (h) 2. includes periods during which the motor vehicle is incapable of providing service because of warranty nonconformity, regardless of whether the vehicle is in the owner's possession and driveable. Vultaggio v. General Motors Corp.
145 Wis. 2d 874,
429 N.W.2d 93 (Ct. App. 1988).
218.0171 Annotation
"Disbursements and reasonable attorney fees" under sub. (7) include post-trial disbursements and reasonable fees incurred. Chmill v. Friendly Ford-Mercury,
154 Wis. 2d 407,
453 N.W.2d 197 (Ct. App. 1990).
218.0171 Annotation
Sub. (2) (c) does not require that a vehicle continue to have a nonconformity for a consumer to demand a refund when the vehicle has been out of service at least 30 days; "having the nonconformity" is a general reference to the vehicle in question, rather than a refund prerequisite. Nick v. Toyota Motor Sales,
160 Wis. 2d 373,
466 N.W.2d 215 (Ct. App. 1991).
218.0171 Annotation
Under sub. (1) (a), the allowance for alternate transportation is limited to the cost in connection with the repair of the nonconforming vehicle. Nick v. Toyota Motor Sales,
160 Wis. 2d 373,
466 N.W.2d 215 (Ct. App. 1991).
218.0171 Annotation
If the owner gives notice and a single opportunity to repair, the owner cannot refuse additional attempts to repair within 30 days and sue under the lemon law. Carl v. Spickler Enterprises Ltd.
165 Wis. 2d 611,
478 N.W.2d 48 (Ct. App. 1991).
218.0171 Annotation
Although the plaintiff arguably granted the automaker an extension of the 30-day period under sub. (2) (c), the prohibition of waivers of claims under sub. (6) resulted in the automaker being liable for failing to satisfy the claim within the 30-day period. Hughes v. Chrysler Motors. Corp.
188 Wis. 2d 1,
523 N.W.2d 197 (Ct. App. 1994). Affirmed on other grounds
197 Wis. 2d 974,
542 N.W.2d 148 (1996),
95-0208.
218.0171 Annotation
A manufacturer is not liable for defects in dealer added accessories not manufactured or distributed by the manufacturer. Malone v. Nissan Motor Corp.
190 Wis. 2d 436,
526 N.W.2d 841 (Ct. App. 1994).
218.0171 Annotation
Pecuniary loss under sub. (7) includes the entire purchase price of the vehicle. Hughes v. Chrysler Motor Corp.
197 Wis. 2d 974,
542 N.W.2d 148 (1996),
95-0208.
218.0171 Annotation
The 30-day time limit in sub. (2) (c) is not suspended or delayed by the parties disagreement over the amount of the refund. The manufacturer's options are to, within the 30-day period, pay the amount demanded or pay the amount it deems appropriate and be subject to possible suit over the disputed amount. Church v. Chrysler Corp.
221 Wis. 2d 460,
585 N.W.2d 685 (Ct. App. 1998).
218.0171 Annotation
It is proper to deduct the amount of a cash rebate in determining the refund amount. Church v. Chrysler Corp.
221 Wis. 2d 460,
585 N.W.2d 685 (Ct. App. 1998).
218.0171 Annotation
A "new motor vehicle" under sub. (2) (a) does not include a previously-owned vehicle that is subject to the original manufacturer's warranty and is less than one year removed from first delivery to a consumer. Schey v. Chrysler Corp.
228 Wis. 2d 483,
597 N.W.2d 457 (Ct. App. 1999).
218.0171 Annotation
A vehicle used as a demonstrator was a "comparable new motor vehicle" under sub. (2) (b) when the defective vehicle had also been a demonstrator. Sub. (2) (b) applies when a reasonable attempt to repair has been established. An action seeking a remedy under sub. (7) for violation of sub. (2) (a) applies only to a customer who cannot establish a reasonable attempt to repair and is not entitled to the remedy under sub. (2) (b). Dussault v. Chrysler Corp.
229 Wis. 2d 296,
600 N.W.2d 6 (Ct. App. 1999).
218.0171 Annotation
As used in sub. (7), "any damages" does not include personal injury damages. Gosse v. Navistar International Transportation Corp. 2000 WI App 8,
232 Wis. 2d 163.
605 N.W.2d 896.
218.0171 Annotation
A purchaser's awareness of defects in a vehicle prior to delivery does not make the lemon law inapplicable. Dieter v. Chrysler Corp. 2000 WI 45,
234 Wis. 2d 670,
610 N.W.2d 832.
218.0171 Annotation
A manufacturer of component parts who ships completed parts to an automobile manufacturer is not liable under this section. Harger v. Caterpillar, Inc. 2000 WI App 241,
239 Wis. 2d 551,
620 N.W.2d 477.
218.0171 Annotation
This section is a stand alone statute that is not dependent upon or qualified by the uniform commercial code. An obligation of good faith by all parties is rooted in the statute. There is no basis to argue that a party who acts in compliance with the statute acts in bad faith. Herzberg v. Ford Motor Co. 2001 WI App 65,
242 Wis. 2d 316,
626 N.W.2d 67.
218.0171 Annotation
A person who purchases a vehicle at the conclusion of a lease term is no longer a consumer within the meaning of sub. (1) (b) 4. and is not entitled to any relief under the Lemon Law. Varda v. General Motors Corporation, 2001 WI App 89,
242 Wis. 2d 756,
626 N.W.2d 346.
218.0171 Annotation
A manufacturer did not fulfill its obligation to provide a "comparable new motor vehicle" under sub. (2) (b) by offering to replace a consumer's nonconforming tow truck with a new cab and chassis but without a new tow unit, although the tow unit was not manufactured by the manufacturer. Kiss v. General Motors Corporation, 2001 WI App. 122,
246 Wis. 2d 364,
630 N.W.2d 742.
218.0171 Annotation
Enforcement of an informal settlement decision under sub. (3) is not limited to remedies under ch. 788, applicable to arbitration. Acceptance of the decision by the consumer does not prevent the consumer from pursuing an action under sub. (7) to enforce the decision. Kiss v. General Motors Corporation, 2001 WI App. 122,
246 Wis. 2d 364,
630 N.W.2d 742.
218.0171 Annotation
In order to receive a refund or replacement vehicle under sub. (2) (b), the consumer must offer to transfer title back to the manufacturer and, upon receipt of the refund or replacement, deliver the vehicle and its title to the manufacturer. A vehicle owner who transferred the vehicle back to the dealer 8 months prior to seeking relief could not fulfill these requirements and was no longer a consumer who could assert a claim under this section. Smyser v. Western Star Trucks Corp. 2001 WI App 180,
247 Wis. 2d 281,
634 N.W.2d 134.
218.0171 Annotation
Delivery of a refund check to a dealer and a fax to the consumer's attorney is not delivery of the refund to the consumer for purposes of determining whether the refund was timely made under sub. (2) (c). Estate of Riley v. Ford Motor Company, 2001 WI App 234,
248 Wis. 2d 193,
635 N.W.2d 635.
218.0171 Annotation
Sub. (2) (b) 3. does not apply when a lemon law action is filed. Instead, the sub. (7) pecuniary loss provisions apply. The current value of a vehicle lease is not the proper measure of damages under sub. (7). Estate of Riley v. Ford Motor Company, 2001 WI App 234,
248 Wis. 2d 193,
635 N.W.2d 635.
218.0171 Annotation
For purposes of triggering the 30-day time limit under sub. (2) (c), the consumer must either demand that the manufacturer provide a new vehicle or demand that the manufacturer refund the purchase price. The choice cannot be left to the manufacturer and the manufacturer cannot be offered a 3rd choice. Berends v. Mack Truck, Inc. 2002 WI App 69,
252 Wis. 2d 371,
643 N.W.2d 158.
218.0171 Annotation
A vehicle is not free from non-conformities simply because the consumer is able to drive it. Dobbratz Trucking & Excavating v. PACCAR, Inc. 2002 WI App 138,
256 Wis. 2d 205,
647 N.W.2d 315.
218.0171 Annotation
This section makes the vehicle manufacturer liable for nonconformities to the engine even though the engine is not covered in manufacturer's express warranty. Schonscheck v. Paccar, Inc. 2003 WI App 79,
261 Wis. 2d 769,
661 N.W.2d 476,
02-1413.
218.0171 Annotation
A consumer who demands a replacement vehicle under this section impliedly offers to transfer title to the old vehicle as required under sub. (2) (c). Garcia v. Mazda Motor of America, Inc. 2004 WI 93, ___ Wis. 2d ___, ___ N.W.2d ___,
02-2260.
218.0171 Annotation
"Days" under sub. (1) (h) includes weekends and holidays. Kletzien v. Ford Motor Co.,
668 F. Supp. 1225 (1987).
218.0171 Annotation
Remedies for motor vehicle purchasers. Nicks, WBB March, 1985.
218.0171 Annotation
Lemon law II. Nicks. WBB July 1987.
218.0171 Annotation
A New Twist On the Lemon Law. Nicks. Wis. Law. Oct. 1991.
218.0171 Annotation
Updating Wisconsin's Lemon Law. Nicks. Wis. Law. Oct. 1999.
218.0171 Annotation
Fill 'Er Up: Supreme Court Orders High Octane Relief Under Wisconsin's Lemon Law. Nicks. Wis. Law. June 1996.
218.0171 Annotation
Lemon Law Update. Nicks. Wis. Law. Nov. 2000.
218.0171 Annotation
Accessories Under the Lemon Law. Nicks. Wis. Law. March 2002.
218.0171 Annotation
Lemon Law Practice Pointers. Nicks. Wis. Law. Nov. 2003.
218.0172
218.0172
Motor vehicle adjustment programs. 218.0172(1)(a)
(a) "Adjustment program" means an extended policy program under which a manufacturer undertakes to pay for all or any part of the cost of repairing, or to reimburse purchasers for all or any part of the cost of repairing, any condition that may substantially affect motor vehicle durability, reliability or performance. "Adjustment program" does not include service provided under a written warranty provided to a consumer, service provided under a safety or emission-related recall program or individual adjustments made by a manufacturer on a case-by-case basis.
218.0172(2)(a)1.
1. Establish a procedure to inform a consumer of any adjustment program applicable to the consumer's motor vehicle and, upon request, furnish the consumer with any document issued by the manufacturer relating to any adjustment program.
218.0172(2)(a)2.
2. Notify, by 1st class mail, a consumer who is eligible under an adjustment program of the condition in the motor vehicle that is covered by the adjustment program and the principal terms and conditions of the adjustment program within 90 days after the date on which the adjustment program is adopted.
218.0172(2)(a)3.
3. Notify its motor vehicle dealers, in writing, of all the terms and conditions of an adjustment program within 30 days after the date on which the program is adopted.
218.0172(2)(a)4.
4. If a consumer is a purchaser or lessor of a new motor vehicle, notify the consumer, in writing, of the consumer's rights and remedies under this section. The notice shall include a statement in substantially the following language: "Sometimes.... (manufacturer's name) offers a special adjustment program to pay all or part of the cost of certain repairs beyond the terms of the warranty. Check with your motor vehicle dealer to determine whether any adjustment program is applicable to your motor vehicle."
218.0172(2)(b)
(b) If a motor vehicle dealer has been informed of an adjustment program under
par. (a) 3., the motor vehicle dealer shall disclose to a consumer seeking repairs for a condition covered by the adjustment program the terms and conditions of the adjustment program.
218.0172(3)(a)(a) A manufacturer who establishes an adjustment program shall implement procedures to assure reimbursement of each consumer eligible under an adjustment program who incurs expenses for repair of a condition subject to the program before acquiring knowledge of the program. Reimbursement shall be consistent with the terms and conditions of the particular adjustment program.
218.0172(3)(b)
(b) A consumer shall make a claim for reimbursement under
par. (a) in writing to the manufacturer within 2 years after the date of the consumer's payment for repair of the condition. The manufacturer shall notify the consumer within 21 business days, as defined in
s. 421.301 (6), after receiving a claim for reimbursement if the claim will be allowed or denied. If the claim is denied, the specific reasons for the denial shall be stated in writing.
218.0172(4)
(4) Remedies. In addition to pursuing any other remedy, a consumer may bring an action to recover damages caused by a violation of this section. A court shall award a consumer who prevails in such an action twice the amount of any pecuniary loss, together with costs, disbursements and reasonable attorney fees, notwithstanding
s. 814.04 (1), and any equitable relief the court determines appropriate.
218.0172 History
History: 1999 a. 31 s.
288; Stats. 1999 s. 218.0172.
ADJUSTMENT SERVICE COMPANIES
218.02
218.02
Adjustment service companies. 218.02(1)
(1)
Definitions. As used in this section:
218.02(1)(a)
(a) "Adjustment service company," hereinafter called company, shall mean a corporation, limited liability company, association, partnership or individual engaged as principal in the business of prorating the income of a debtor to the debtor's creditor or creditors, or of assuming the obligations of any debtor by purchasing the accounts the debtor may have with the debtor's several creditors, in return for which the principal receives a service charge or other consideration.
218.02(2)
(2) Licenses; applications; fees; bond. 218.02(2)(a)1.1. Each adjustment service company shall apply to the division for a license to engage in such business. Application for a separate license for each office of a company to be operated under this section shall be made to the division in writing, under oath, in a form to be prescribed by the division. The division may issue more than one license to the same licensee. Except as provided in
subd. 3., an application for a license under this section shall include the following:
218.02(2)(a)1.a.
a. In the case of an individual, the individual's social security number.
218.02(2)(a)1.b.
b. In the case of a person that is not an individual, the person's federal employer identification number.
218.02(2)(a)2.
2. The division may not disclose any information received under
subd. 1. to any person except as follows:
218.02(2)(a)2.a.
a. The division may disclose information under
subd. 1. to the department of revenue for the sole purpose of requesting certifications under
s. 73.0301.
218.02(2)(a)2.b.
b. The division may disclose information under
subd. 1. a. to the department of workforce development in accordance with a memorandum of understanding under
s. 49.857.
218.02(2)(a)3.
3. If an applicant who is an individual does not have a social security number, the applicant, as a condition of applying for or applying to renew a license under this section, shall submit a statement made or subscribed under oath or affirmation to the division that the applicant does not have a social security number. The form of the statement shall be prescribed by the department of workforce development. Any license issued or renewed in reliance upon a false statement submitted by an applicant under this subdivision is invalid.
218.02(2)(b)
(b) At the time of making application and before engaging in business, every applicant for an adjustment service company license shall pay a nonrefundable $200 fee to the division for investigating the application and a $200 annual license fee. If the cost of an investigation exceeds $200, the applicant shall, upon demand of the division, pay the excess cost. No investigation fee shall be required on the renewal of a license.
218.02(2)(c)
(c) The division may require any licensee either before or after the issuance of the license to file and maintain in force a bond in a form to be prescribed by and acceptable to the division, in such sum as the division may deem necessary to safeguard the interest of the borrowers and the public, not exceeding, however, the sum of $5,000.
218.02(3)
(3) Conditions of the issuance of licenses. The division shall issue a license to the applicant to conduct such business at the office specified in the application in accordance with the provisions of this section, if the division shall find:
218.02(3)(a)
(a) That the applicant has filed the required application and paid the required fees.
218.02(3)(b)
(b) That the financial responsibility, experience, character and general fitness of the applicant, and of the members thereof if the applicant be a partnership, limited liability company or association, and of the officers and directors thereof if the applicant be a corporation, are such as to command the confidence of the community and to warrant belief that the business will be operated honestly, fairly and efficiently within the purposes of this section.
218.02(3)(c)
(c) That allowing such applicant to engage in business will promote the convenience and advantage of the community in which the business of the applicant is to be conducted.
218.02(3)(d)
(d) That the applicant has not been certified under
s. 73.0301 by the department of revenue as being liable for delinquent taxes.
218.02(3)(e)
(e) That, if the applicant is an individual, the applicant has not failed to comply, after appropriate notice, with a subpoena or warrant issued by the department of workforce development or a county child support agency under
s. 59.53 (5) and related to paternity or child support proceedings and is not delinquent in making court-ordered payments of child or family support, maintenance, birth expenses, medical expenses or other expenses related to the support of a child or former spouse, as provided in a memorandum of understanding entered into under
s. 49.857.
218.02(4)
(4) Order denying application. If the division is not satisfied as to all of the matters specified in
sub. (3) the division shall enter a special order denying the application for a license and shall return the applicant's license fee. The division shall make findings of fact as part of and in support of the division's order denying any application for a license.
218.02(5)
(5) Licenses; posting; changes of location; renewal. 218.02(5)(a)(a) Every license issued shall state the address of the office at which the business is to be conducted, the name of the licensee, and if the licensee is a partnership, limited liability company or association, the names of the members thereof, and if a corporation the date and place of its incorporation. Such license shall be kept conspicuously posted in the office of the licensee and shall not be transferable or assignable.
218.02(5)(b)
(b) Whenever a licensee shall contemplate a change of the licensee's place of business to another location within the same city, village or town, the licensee shall give written notice thereof to the division, which shall attach to the license the division's authorization of such removal, specifying the date thereof and the new location. Such authorization shall be authority for the operation of such business under the same license at the specified new location. No change in the place of business of a licensee to a location outside of the original city, village or town shall be permitted under the same license.