218.0114(19)
(19) Every sales finance company shall be required to procure a salesperson's license for itself or its employees in order to sell motor vehicles repossessed by it.
218.0114(20)(a)(a) If the licensor has reasonable cause to doubt the financial responsibility of the applicant or licensee or the compliance by the applicant or licensee with
ss. 218.0101 to
218.0163, the licensor may require the applicant or licensee to furnish information relating to the applicant's or licensee's solvency and financial standing.
218.0114(20)(b)
(b) If the licensor has reasonable cause to doubt the financial responsibility of the applicant or licensee or the compliance by the applicant or licensee with
ss. 218.0101 to
218.0163, the licensor may require the applicant or licensee to furnish and maintain an additional bond in the form, amount and with the sureties it approves, but not less than $5,000, nor more than $100,000, conditioned upon the applicant or licensee complying with the statutes applicable to the licensee and as indemnity for any loss sustained by any person by reason of any acts of the licensee constituting grounds for suspension or revocation of the license under
ss. 218.0101 to
218.0163. The bonds shall be executed in the name of the department of transportation for the benefit of any aggrieved person who sustains a loss because of an act of the licensee that constitutes grounds for the suspension or revocation of his or her license under
ss. 218.0101 to
218.0163, except that the aggregate liability of the surety to all aggrieved persons shall, in no event, exceed the amount of the bond. The bonding requirements in this paragraph shall not apply to manufacturers, factory branches, and their agents and is in addition to the bond or letter of credit required of a motor vehicle dealer under
sub. (5) (a).
218.0114(20)(c)
(c) An applicant or licensee furnishing information under
par. (a) may designate the information as a trade secret, as defined in
s. 134.90 (1) (c), or as confidential business information. The licensor shall notify the applicant or licensee providing the information 15 days before any information designated as a trade secret or as confidential business information is disclosed to the legislature, a state agency, as defined in
s. 13.62 (2), a local governmental unit, as defined in
s. 605.01 (1), or any other person. The applicant or licensee furnishing the information may seek a court order limiting or prohibiting the disclosure, in which case the court shall weigh the need for confidentiality of the information against the public interest in the disclosure. A designation under this paragraph does not prohibit the disclosure of a person's name or address, of the name or address of a person's employer or of financial information that relates to a person when requested under
s. 49.22 (2m) by the department of children and families or a county child support agency under
s. 59.53 (5).
218.0114(21)
(21) Application for dealers' licenses shall be submitted to the department of transportation in duplicate and shall contain such information as the licensors require. Application for sales finance company licenses shall contain such information as the division of banking requires. No motor vehicle dealer or sales finance company, unless so licensed, shall be permitted to register or receive or use registration plates under
ss. 341.47 to
341.57. The department of transportation shall transmit the duplicate copy of each application for a dealer's license to the division of banking with the fee required under
sub. (14) (g). The division of banking may not refund the fee required under
sub. (14) (g). The division of banking shall approve a sales finance company license for a dealer if no prior sales finance company license has been suspended or revoked, and if the applicant meets the requirements of
ss. 218.0101 to
218.0163 relating to sales finance companies.
218.0114(21e)(a)(a) In addition to any other information required under this section and except as provided in
par. (c), an application by an individual for the issuance or renewal of a license described in
sub. (14) shall include the individual's social security number and an application by a person who is not an individual for the issuance or renewal of a license described in
sub. (14) (a),
(b),
(c) or
(e) shall include the person's federal employer identification number. The licensor may not disclose any information received under this paragraph to any person except the department of children and families for purposes of administering
s. 49.22, the department of revenue for the sole purpose of requesting certifications under
s. 73.0301, and the department of workforce development for the sole purpose of requesting certifications under
s. 108.227.
218.0114(21e)(b)
(b) The licensor shall deny an application for the issuance or renewal of a license if the information required under
par. (a) is not included in the application.
218.0114(21e)(c)
(c) If an applicant for the issuance or renewal of a license described in
sub. (14) is an individual who does not have a social security number, the applicant, as a condition of applying for or applying to renew the license, shall submit a statement made or subscribed under oath or affirmation to the licensor that the applicant does not have a social security number. The form of the statement shall be prescribed by the department of children and families. Any license issued or renewed in reliance upon a false statement submitted by an applicant under this paragraph is invalid.
218.0114(21g)(a)(a) In addition to any other information required under this section and except as provided in
par. (c), an application for a license described in
sub. (16) shall include the following:
218.0114(21g)(a)1.
1. In the case of an individual, the individual's social security number.
218.0114(21g)(a)2.
2. In the case of a person that is not an individual, the person's federal employer identification number.
218.0114(21g)(b)
(b) The licensor may not disclose any information received under
par. (a) to any person except as follows:
218.0114(21g)(b)1.
1. The licensor may disclose information under
par. (a) to the department of revenue for the sole purpose of requesting certifications under
s. 73.0301 and to the department of workforce development for the sole purpose of requesting certifications under
s. 108.227.
218.0114(21g)(b)2.
2. The licensor may disclose information under
par. (a) 1. to the department of children and families in accordance with a memorandum of understanding under
s. 49.857.
218.0114(21g)(c)
(c) If an applicant for the issuance or renewal of a license described in
sub. (16) is an individual who does not have a social security number, the applicant, as a condition of applying for or applying to renew the license, shall submit a statement made or subscribed under oath or affirmation to the licensor that the applicant does not have a social security number. The form of the statement shall be prescribed by the department of children and families. Any license issued or renewed in reliance upon a false statement submitted by an applicant under this paragraph is invalid.
218.0114(22)
(22) A motor vehicle dealer licensed in accordance with the provisions of
ss. 218.0101 to
218.0163 shall make reports to the licensor at such intervals and showing such information as the licensor may require.
218.0114(23)
(23) After the receipt of an application in due form, properly verified and certified, and upon the payment of the $5 examination fee, the secretary, deputy secretary or any salaried employee of the department of transportation designated by the secretary shall, within a reasonable time and in a place reasonably accessible to the applicant for a license, subject each first-time applicant for license and, if the secretary deems necessary, any applicant for renewal of license to a personal written examination as to competency to act as a motor vehicle salesperson. The secretary shall issue to an applicant a resident or nonresident motor vehicle salesperson's license if the application and examination show that the applicant meets all of the following requirements:
218.0114(23)(a)
(a) Intends in good faith to act as a motor vehicle salesperson.
218.0114(23)(c)
(c) Has had experience or training in, or is otherwise qualified for, selling or leasing motor vehicles.
218.0114(23)(d)
(d) Is a resident of this state, unless application is for a nonresident motor vehicle salesperson's license.
218.0114(23)(e)
(e) Is reasonably familiar with the motor vehicle sales or consumer lease laws or contracts that the applicant is proposing to solicit, negotiate or effect.
218.0114(24)(b)
(b) The department may not issue a dealer license under
ss. 218.0101 to
218.0163, unless the department has determined that no factory will hold an ownership interest in or operate or control the dealership or that one of the exceptions under
s. 218.0121 (3m) applies.
218.0114(24)(d)
(d) If the division of hearings and appeals determines, after a hearing on the matter at the request of the department or any licensee, that a factory holds an ownership interest in a dealership or operates or controls a dealership in violation of
s. 218.0121 the division shall order the denial or revocation of the dealership's license.
218.0114 Cross-reference
Cross-reference: See also chs.
DFI-Bkg 76 and
Trans 137,
138. 139, 140, and 144, Wis. adm. code.
218.0114 Annotation
Section 180.847 (1) [now s. 180.1502 (1)], prescribing that no foreign corporation transacting business in the state without a certificate of authority shall be permitted to maintain or defend a civil action until it obtains a certificate of authority, and s. 218.01 (2) (bd) 3. [now 218.0114 (2m)]), providing that obtaining a license under the motor vehicle dealers law conclusively establishes that a distributor is doing business in this state, have entirely different purposes and meanings. Nagle Motors v. Volkswagen North Central Distributor, Inc.
51 Wis. 2d 413,
187 N.W.2d 374 (1971).
218.0114 Annotation
A dealer's refusal to sell the manufacturer's products after filing a complaint under s. 218.01 (2) (bd) 2. [now 218.0114 (7) (d)] is a violation of that provision, and consequently of s. 218.01 (3) (a) 4. [now 218.0116 (1) (bm)], entitling the manufacturer to treble damages under s. 218.01 (9) (am) [now s. 218.0163]. American Suzuki Motor Corp. v. Bill Kummer, Inc.
65 F.3d 1381 (1995).
218.0116
218.0116
Licenses, how denied, suspended or revoked. 218.0116(1)(1) A license may be denied, suspended or revoked on the following grounds:
218.0116(1)(b)
(b) Filing a materially false or fraudulent income or franchise tax return as certified by the department of revenue.
218.0116(1)(c)
(c) Willfully defrauding any retail buyer, lessee or prospective lessee to the buyer's, lessee's or prospective lessee's damage.
218.0116(1)(cm)
(cm) Willful failure to perform any written agreement with any retail buyer, lessee or prospective lessee.
218.0116(1)(d)
(d) Failure or refusal to furnish and keep in force any bond required.
218.0116(1)(dm)
(dm) Having made a fraudulent sale, consumer lease, prelease agreement, transaction or repossession.
218.0116(1)(e)
(e) Fraudulent misrepresentation, circumvention or concealment through whatsoever subterfuge or device of any of the material particulars or the nature thereof required hereunder to be stated or furnished to the retail buyer, lessee or prospective lessee.
218.0116(1)(em)
(em) Employment of fraudulent devices, methods or practices in connection with compliance with the statutes with respect to the retaking of goods under retail installment contracts or consumer leases and the redemption and resale or subsequent lease of the retaken goods.
218.0116(1)(f)
(f) Having engaged in any unconscionable practice relating to the licensed business activity.
218.0116(1)(g)
(g) Having sold a retail installment contract or consumer lease to a sales finance company that is not licensed under
ss. 218.0101 to
218.0163.
218.0116(1)(gm)
(gm) Having violated any law relating to the sale, lease, distribution or financing of motor vehicles.
218.0116(1)(h)
(h) Being a manufacturer, importer or distributor who has coerced or attempted to coerce any motor vehicle dealer to order any commodity or service or to accept delivery of or pay for any commodity or service that the motor vehicle dealer has not ordered. This paragraph does not modify or prohibit reasonable requirements in a franchise agreement that require a dealer to market and service a representative line of new motor vehicles that the manufacturer, importer or distributor is publicly advertising.
218.0116(1)(hm)
(hm) Being a manufacturer of motor vehicles, factory branch, distributor, field representative, officer, agent or any representative of a motor vehicle manufacturer or factory branch, who has attempted to induce or coerce, or has induced or coerced, any motor vehicle dealer to enter into any agreement with the manufacturer, factory branch or representative of the motor vehicle manufacturer or factory branch, or to do any other act unfair to the dealer, by threatening to cancel any franchise existing between the manufacturer, factory branch or representative of the motor vehicle manufacturer or factory branch and the dealer.
218.0116(1)(i)1.a.
a. "Due regard to the equities" means treatment in enforcing an agreement that is fair and equitable to a motor vehicle dealer or distributor and that is not discriminatory compared to similarly situated dealers or distributors.
218.0116(1)(i)1.b.
b. "Just provocation" means a material breach by a motor vehicle dealer or distributor, due to matters within the dealer's or distributor's control, of a reasonable and necessary provision of an agreement and the breach is not cured within a reasonable time after written notice of the breach has been received from the manufacturer, importer or distributor.
218.0116(1)(i)2.
2. Subject to
s. 218.0132, being a manufacturer, importer or distributor who has unfairly, without due regard to the equities or without just provocation, directly or indirectly canceled or failed to renew the franchise of any motor vehicle dealer; or being a manufacturer or importer, who has unfairly, without due regard to the equities or without just provocation, directly or indirectly canceled or failed to renew the franchise of any distributor. If there is a change in a manufacturer, importer or distributor, a motor vehicle dealer's franchise granted by the former manufacturer, importer or distributor shall continue in full force and operation under the new manufacturer, importer or distributor unless a mutual agreement of cancellation is filed with the department of transportation between the new manufacturer, importer or distributor and the dealer.
218.0116(1)(im)1.a.
a. With respect to an order or contract of purchase, the practice of increasing the selling price of a motor vehicle above that originally quoted the purchaser as evidenced by a purchase order or contract which has been signed by both the purchaser and dealer licensee.
218.0116(1)(im)1.b.
b. With respect to a consumer lease or prelease agreement, the practice of increasing the gross capitalized cost above that originally quoted the lessee or prospective lessee as evidenced by a consumer lease or prelease agreement which has been signed by both the lessee or prospective lessee and the dealer licensee.
218.0116(1)(im)2.
2. Having accepted an order or contract of purchase from a buyer or a consumer lease or prelease agreement from a lessee or prospective lessee if the arrangement results in the practice of bushing.
218.0116(1)(j)
(j) Having advertised, printed, displayed, published, distributed, broadcast or televised or caused or permitted to be advertised, printed, displayed, published, distributed, broadcast or televised in any manner whatsoever, any statement or representation with regard to the sale, lease or financing of motor vehicles which is false, deceptive or misleading.
218.0116(1)(jm)
(jm) Having set up, promoted or aided in the promotion of a plan by which motor vehicles are sold or leased to a person for a consideration and upon the further consideration that the purchaser or lessee agrees to secure one or more persons to participate in the plan by respectively making a similar purchase or lease and in turn agreeing to secure one or more persons likewise to join in the plan, each purchaser or lessee being given the right to secure money, credits, goods or something of value, depending upon the number of persons joining in the plan.
218.0116(1)(k)
(k) Being a dealer who keeps open the dealer's place of business on Sunday for the purpose of buying, leasing or selling motor vehicles; but nothing in this paragraph shall apply to any person who conscientiously believes that the 7th day of the week, from sunset Friday to sunset Saturday, should be observed as the Sabbath and who actually refrains from conducting or engaging in the business of buying, leasing, selling or offering for lease or sale motor vehicles, or performing other secular business on that day.
218.0116(1)(L)
(L) Being a motor vehicle dealer who, in breach of an agreement, voluntarily changes its ownership or executive management, transfers its dealership assets to another person, adds another franchise at the same location as its existing franchise, or relocates a franchise without first complying with the procedures in
s. 218.0134.
218.0116(1)(Lm)
(Lm) Being a manufacturer, importer or distributor who fails to comply with the procedures in
s. 218.0134 regarding a dealer's request for approval of a change of ownership or executive management, transfer of its dealership assets to another person, adding another franchise at the same location as its existing franchise, or relocation of a franchise or who fails to comply with an order of the division of hearings and appeals issued under
s. 218.0134.
218.0116(1)(mm)
(mm) Being a manufacturer, factory branch, distributor, field representative, officer, agent or any representative of a manufacturer, factory branch or distributor who, notwithstanding the terms of any agreement, refuses to honor the succession to the ownership or operation of a dealership under an existing franchise agreement by a designated family member of a deceased or incapacitated dealer, except in the manner prescribed by
s. 218.0131, or who unreasonably withholds its approval of a change of ownership or executive management of the dealership after the dealer's death or incapacity.
218.0116(1)(n)
(n) The selling of new motor vehicles for which the dealer is not franchised.
218.0116(1)(nm)
(nm) Willful failure to provide and maintain facilities and business records as required by
ss. 218.0101 to
218.0163 or by any rule promulgated by the licensor pertaining to facility and business records.
218.0116(1)(o)
(o) Being an inactive business, as evidenced by 3 or less motor vehicle purchases and sales or consumer leases during the prior year licensing period.
218.0116(1)(om)
(om) Failure to obtain proper business zoning or failure to obtain and maintain any required additional state or local license or permit.
218.0116(1)(pm)
(pm) Being a manufacturer, factory branch or distributor who enters into a franchise agreement establishing or relocating a motor vehicle dealership, parts outlet or service outlet in a relevant market area without first complying with the procedure in
sub. (7) (a).
218.0116(1)(q)
(q) Being a manufacturer, factory branch or distributor who engages in any action which transfers to a motor vehicle dealer any responsibility of the manufacturer, factory branch or distributor under
s. 218.0171.
218.0116(1)(qm)
(qm) Being a manufacturer, distributor or importer who does any of the following:
218.0116(1)(qm)2.
2. Fails to revise or remove portions of an agreement that the department of transportation declares to contain provisions which are inconsistent with
s. 218.0114 (9).
218.0116(1)(qm)3.
3. Requires or coerces a dealer or distributor to sign an agreement, as a condition of obtaining or continuing a franchise, that contains provisions that are void or prohibited under
s. 218.0114 (9) or attempts to enforce an agreement with void or prohibited provisions.
218.0116(1)(qm)4.
4. Requires or coerces a dealer or distributor to sign an agreement that requires arbitration as a condition of obtaining or continuing a franchise, unless the dealer or distributor has the option of signing an otherwise identical agreement without the arbitration provision or unless the agreement provides for arbitration on a case-by-case basis and only when both parties elect to refer the matter to arbitration. This subdivision does not apply to a manufacturer or distributor who enters into an agreement that creates a new franchise for a new line make of motor vehicle, if each of the following is applicable:
218.0116(1)(qm)4.a.
a. The arbitration provision was the subject of good faith negotiations with a representative group of dealers.
218.0116(1)(qm)4.b.
b. Each dealer voluntarily accepts the arbitration provision after receiving a franchise offering circular under
s. 553.27 (4) that discloses the existence and effect of the arbitration provision.
218.0116(1)(qm)4.c.
c. The manufacturer or dealer files a copy of the franchise offering circular and proof of good faith negotiation and voluntary acceptance of the arbitration with any filing required under
s. 218.0114 (7) (a).
218.0116(1)(r)
(r) Being a manufacturer, distributor or importer who fails to designate in writing the area of sales responsibility assigned to a motor vehicle dealer or who changes or attempts to change an area of sales responsibility to avoid the requirements of
sub. (7).
218.0116(1)(rm)
(rm) Being a grantor, as defined in
s. 218.0133 (1) (b), except a motorcycle grantor, as defined in
s. 218.0133 (1) (c), who fails to pay a motor vehicle dealer franchise termination benefits under
s. 218.0133 or being a motorcycle grantor who fails to pay a motor vehicle dealer agreement termination benefits under
s. 218.0133.
