Register October 2017 No. 742
Chapter Trans 142
RECREATIONAL VEHICLE DEALER TRADE PRACTICES, FACILITIES AND RECORDS
Trans 142.01 Purpose and scope.
Trans 142.02 Definitions.
Trans 142.03 Advertising and sales representations.
Trans 142.04 Purchase contract.
Trans 142.05 Consignment agreements.
Trans 142.06 Disclosure of the condition of the recreational vehicle.
Trans 142.07 Dealer facilities and records.
Trans 142.01(1)
(1)
Statutory authority. As authorized by ss.
218.12 (6) and
227.11, Stats., the purpose of this chapter is to establish the department's administrative interpretation of ss.
218.10 (1g),
218.11 (3),
(6) (e),
(h),
(i),
(k) and
(n) and
(7) (c),
218.12 (5) and
342.16 (2), Stats., relating to recreational vehicle dealer trade practices, facilities and records.
Trans 142.01 Note
Note: The Department of safety and professional services regulates the trade practices, facilities and records of manufactured home dealers.
Trans 142.01(2)
(2) Applicability. This chapter applies to any person applying for or holding a Wisconsin recreational vehicle dealer or salesperson license.
Trans 142.01 Note
Note: A form used in administering this rule is the recreational vehicle dealer service agreement.
Trans 142.01 History
History: Cr.
Register, October, 1984, No. 346, eff. 11-1-84; correction in (1) made under s. 13.93 (2m) (b) 7., Stats.,
Register, December, 1987, No. 384; am.
Register, August, 2000, No. 536, eff. 9-1-00.
Trans 142.02(1)
(1) “Cash price" means dealer asking price including dealer installed options and accessories and additional dealer markup, profit and transportation charges, minus the dollar value of cash discounts.
Trans 142.02(2)
(2) “Damage" means defects caused by reasons other than normal wear through vehicle age and usage.
Trans 142.02(3)
(3) “Licensee" means any recreational vehicle dealer, or salesperson, or any person who is both a recreational vehicle dealer and a salesperson.
Trans 142.02(5)
(5) “New recreational vehicle" means any untitled or titled recreational vehicle which has not been previously occupied, used or sold for private or business use.
Trans 142.02(6)
(6) “Recreational vehicle" means a mobile home which in the traveling mode, is 8 feet 6 inches or less in width or 45 feet or less in length, and which is built on a permanent chassis and designed to be towed on a highway by a motor vehicle and equipped and used, or intended to be used, primarily for temporary human habitation or recreational living quarters, and includes the plumbing, heating, air-conditioning, and electrical systems contained in the recreational vehicle. For purposes of this chapter the measurement of length shall be determined in accordance with s.
348.07 (3), Stats.
Trans 142.02 Note
Note: Chapter Adm 67 was renumbered ch. Comm 97 eff. 7-1-01. Chapter Comm 97 was repealed eff. 7-1-05.
Trans 142.02(7)(b)
(b) A person, not excluded by
par. (a), who sells 2 or more new or used recreational vehicles in any one calendar year.
Trans 142.02 Note
Note: Dealer financial responsibility requirements are specified in ch.
Trans 140.
Trans 142.02(8)
(8) “Retail purchaser" means any purchaser not licensed as a recreational vehicle dealer or salesperson.
Trans 142.02(9)
(9) “Service agreement" means any repair agreement sold by a licensee.
Trans 142.02(10)
(10) “Used recreational vehicle" means any untitled or titled recreational vehicle which has been occupied, used or sold for private or business use.
Trans 142.02 History
History: Cr.
Register, October, 1984, No. 346, eff. 11-1-84; am. (7) (a) (intro.) and 1.,
Register, August, 2000, No. 536, eff. 9-1-00.
Trans 142.03
Trans 142.03 Advertising and sales representations. Trans 142.03(1)(1)
Truthful. The use of false, deceptive or misleading advertising or representations by any licensee to induce the purchase of a recreational vehicle constitutes an unfair practice and is prohibited.
Trans 142.03(2)
(2) Factual. Any licensee, making a statement of fact to the public in an advertisement, written statement or representation concerning the recreational vehicle offered for sale, the services provided or other aspects of the business operation, shall upon request of the department, furnish evidence of the validity and accuracy of the statement of fact at the time it was made.
Trans 142.03(3)
(3) Disclosures required when advertising price. When the price of a recreational vehicle is advertised by a licensee, the advertised price shall include all charges that shall be paid by the purchaser to acquire ownership of the advertised recreational vehicle with the exception of sales tax and title and registration fees.
Trans 142.03(4)
(4) Name. Advertisements for recreational vehicle sales shall include the licensed business name.
Trans 142.03(5)
(5) Model year and if used. When advertising a recreational vehicle, a licensee shall state the recreational vehicle's model year and whether the recreational vehicle is new or used. If all of the recreational vehicles in an advertisement are used, one reference designating that they are used is sufficient.
Trans 142.03(6)
(6) Expiration terms of sales or promotions. Whenever a sale or promotion offering gifts, merchandise, equipment, accessories, service, discounts, price reductions, or cash is advertised, the advertisement shall also specifically disclose the expiration terms or date of the sale or promotion.
Trans 142.03 History
History: Cr.
Register, October, 1984, No. 346, eff. 11-1-84.
Trans 142.04(1)(a)(a) All licensees shall furnish retail purchasers with a copy of a document entitled “Recreational Vehicle Purchase Contract" that clearly states that the prospective retail purchaser is making an offer to purchase a recreational vehicle. An exact copy of the purchase contract shall be provided to the purchaser at the time the purchaser signs the offer and again after the offer is accepted by the dealer. Any changes to the purchase contract after signing by the purchaser or subsequent to acceptance by the dealer shall be initialed by all parties on all copies.
Trans 142.04(1)(b)
(b) A recreational vehicle purchase contract shall be executed whenever the licensee accepts a down payment, deposit or title for a trade-in unit from a prospective retail purchaser.
Trans 142.04(2)
(2) Contract face requirements. A purchase contract shall, on its face:
Trans 142.04(2)(a)
(a) Clearly identify the names and addresses of the dealer and purchaser.
Trans 142.04(2)(b)
(b) Describe the recreational vehicle purchased by year, make, model and identification number, and any trade-in vehicle by year, make, and model, and specify whether the purchased recreational vehicle is new or used.
Trans 142.04(2)(d)
(d) Include the salesperson's name and license number in an area separate from the signatures of the purchaser and dealer or authorized representative.
Trans 142.04(2)(e)
(e) Specify an anticipated delivery date and state further in bold faced type next to the anticipated delivery date: IF THE RECREATIONAL VEHICLE ORDERED BY THE PURCHASER IS NOT AVAILABLE FOR DELIVERY BY THE DEALER WITHIN 15 CALENDAR DAYS AFTER THE ANTICIPATED DELIVERY DATE, THE PURCHASER MAY CANCEL THIS ORDER. THE PURCHASER SHALL RECEIVE A FULL REFUND OF ANY DOWN PAYMENT AND RETURN OF THE TRADE-IN, OR TITLE FOR THE TRADE-IN, OR BOTH BY THE CLOSE OF THE DEALER'S NEXT BUSINESS DAY. IF THE TRADE-IN HAS BEEN SOLD, THE PURCHASER SHALL RECEIVE THE TRADE-IN ALLOWANCE SPECIFIED IN THE OFFER.
Trans 142.04(2)(f)
(f) Clearly state the price due on closing and the known components of that price, including but not limited to, the price of the recreational vehicle, the price and description of any additional accessories, options, or equipment, sales tax, license and title fees, down-payment, and trade-in allowance. Rebates shall be stated separately by dollar amount and assignment.
Trans 142.04(2)(g)
(g) Clearly state whether or not the contract is subject to the purchaser obtaining acceptable financing through the dealer or at the creditor of the purchaser's choice, and how long the purchaser has to obtain financing. If the purchaser is unable to obtain acceptable financing, the purchaser may cancel the contract without penalty and shall, by the close of the dealer's next business day, receive a full refund of any down-payment, and return of the trade-in, or title for the trade-in, or both. The licensee may delay returning the down-payment beyond the close of the dealer's next business day only when the purchaser's personal check or other negotiable instrument has not cleared the payor's bank. If the check or other negotiable instrument clears, the licensee shall return, in person or by mail, the down-payment to the purchaser within 24 hours of receiving evidence of clearance. If the trade-in has been sold, the purchaser shall receive the trade-in allowance specified in the offer.
Trans 142.04(2)(h)
(h) Specify all other negotiated conditions of the sale not stated elsewhere on the contract.
Trans 142.04(3)(a)(a) Unless otherwise specified in the contract, the offer to purchase is automatically voided if the licensee fails to accept or reject the offer by the close of the dealer's next business day.
Trans 142.04(3)(b)
(b) The licensee shall not sell the recreational vehicle to any other party until either the offer is rejected by the licensee, or the offer is voided in accordance with this section, or the purchaser cancels the contract in accordance with
sub. (4).
Trans 142.04(3)(c)
(c) Any down payment, deposit, or title shall be returned to the prospective retail purchaser within 2 working hours from the time the offer to purchase is rejected by the licensee. If the prospective purchaser is not present or available during the 2 hour period, those items shall be returned in person or mailed by the close of the dealer's next business day.
Trans 142.04(4)(a)(a) The purchase contract shall clearly state that cancellation of a recreational vehicle contract by a purchaser within 24 hours after acceptance by the dealer may subject the purchaser to a penalty of up to 2% of the cash price of the recreational vehicle and that cancellation of the recreational vehicle contract by the purchaser after the 24 hour period may subject the purchaser to penalty of up to 5% of the cash price of the recreational vehicle. Modification of the purchase contract shall not extend the 24 hour period. Documented proof of notification of cancellation is required regardless of the method of notification.
Trans 142.04(4)(b)
(b) The title and any down-payment or deposit which is not retained by the dealer as a penalty in accordance with
par. (a) shall be returned to the purchaser by the close of the dealer's next business day following receipt of the purchaser's notice of cancellation.
Trans 142.04(5)
(5) Price changes. Any increase in price to a retail purchaser after the dealer has accepted an offer is an unfair practice and prohibited except when the price increase is due to:
Trans 142.04(5)(a)
(a) The addition of new equipment as required by state or federal law, or
Trans 142.04(5)(c)
(c) The reappraisal of a trade-in unit which has suffered damage as defined in this chapter or is missing parts or accessories which were part of the trade-in unit at the time the purchase contract was executed. Reappraisal by the licensee shall be limited to an amount equal to the retail repair costs of damages incurred, or to the value of the parts or accessories removed.
Trans 142.04(5)(d)
(d) The reappraisal of a trade-in unit when the model year or dimensions of the trade-in unit were misrepresented by the purchaser. Reappraisal by the licensee shall be limited to the difference between the fair market value of the trade-in unit and the trade in allowance specified on the purchase contract.
Trans 142.04(6)(a)(a) Reference to any warranties, service agreements, or warranty disclaimers which apply to the recreational vehicle shall be made on the purchase contract.
Trans 142.04(6)(b)
(b) If a recreational vehicle is sold with a warranty, the warranty shall be in writing and shall be provided to the purchaser at the time the recreational vehicle is delivered.
Trans 142.04(6)(c)
(c) If a recreational vehicle is sold on an as is - no warranty basis, the purchase contract shall include the following statement in bold faced type: “AS IS—NO WARRANTY"—“EXCEPT FOR ANY EXPRESSED OR IMPLIED WARRANTY BY THE MANUFACTURER OR OTHER THIRD PARTY WHICH EXISTS ON THIS RECREATIONAL VEHICLE, THE ENTIRE RISK AS TO THE QUALITY AND PERFORMANCE OF THE RECREATIONAL VEHICLE IS WITH THE PURCHASER, AND SHOULD THE RECREATIONAL VEHICLE PROVE DEFECTIVE FOLLOWING THE PURCHASE, THE PURCHASER SHALL ASSUME THE ENTIRE COST OF ALL SERVICING AND REPAIR."
Trans 142.04(6)(d)
(d) A warrantor shall service or repair a recreational vehicle in accordance with the terms and conditions of the warranty or service agreement.
Trans 142.04(8)
(8) Waiver. The use of a recreational vehicle purchase contract which requires the purchaser to waive any claims the purchaser may have for breach of contract by the licensee is an unfair practice and prohibited.
Trans 142.05(1)
(1)
Usage and contents. Whenever a recreational vehicle dealer offers for sale a recreational vehicle on consignment, a written consignment agreement shall be completed and shall include:
Trans 142.05(1)(b)
(b) The name of the recreational vehicle owner and dealer, and any other parties to the agreement,
Trans 142.05(1)(c)
(c) The description of the recreational vehicle including year, make, and identification number,
Trans 142.05(1)(d)
(d) The terms of the agreement including the duration of the agreement, the selling price, the amount of the sales commission or fee, and when the sales commission or fee is to be paid,
Trans 142.05(1)(e)
(e) A statement by the owner indicating that either the recreational vehicle is clear of any liens, or the amount of any outstanding lien balance, and
