LRB-2193/1
CTS:wlj:jf
2005 - 2006 LEGISLATURE
March 10, 2005 - Introduced by Representatives Van Roy, Kerkman, Vos, Hahn,
Ballweg, Gronemus, Gard, Townsend, Vrakas, Krawczyk, Jeskewitz,
Hundertmark, Musser, Mursau, Kaufert, Gunderson, Wood, Pettis and
Petrowski, cosponsored by Senators Reynolds, Kanavas, Lassa, Cowles,
Miller and Roessler. Referred to Committee on Small Business.
AB181,1,2
1An Act to create 134.49 of the statutes;
relating to: renewals and extensions
2of business contracts.
Analysis by the Legislative Reference Bureau
Under current law if a landlord-tenant lease provides that the lease will be
automatically renewed or extended unless the tenant or landlord gives notice to the
contrary, that provision is not enforceable against the tenant unless the landlord
gives the tenant a written reminder of that provision at least 15 but not more than
30 days before the notice to terminate the lease is due. This bill creates an identical
limitation for leases of business equipment and for contracts providing business
services.
Current law also specifies the methods a landlord may use to provide the
reminder notice. This bill specifies that a provider of business services or lessor of
business equipment may give notice to a purchaser of business services or lessee of
business equipment (customer) by sending the notice by registered or certified mail
to the customer's last-known address, or by giving a copy of the notice personally to
an owner, officer, director, or managing agent of the customer's business.
The bill also permits a customer to commence an action for damages against a
lessor of business equipment or provider of business services who fails to comply with
the notice requirements.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB181, s. 1
1Section
1. 134.49 of the statutes is created to read:
AB181,2,3
2134.49 Renewals and extensions of business contracts. (1) Definitions. 3In this section:
AB181,2,54
(a) "Business contract" means a contract entered into for the lease of business
5equipment or for providing business services.
AB181,2,86
(c) "Customer" means the lessee under a business contract that is entered into
7for the lease of business equipment or the purchaser under a business contract that
8is entered into for the purchase of business services.
AB181,2,109
(d) "Seller" means the provider of a business service or the lessor of business
10equipment under a business contract.
AB181,2,16
11(2) Notice required. If a business contract provides that the contract will be
12automatically renewed or extended unless the customer declines renewal or
13extension, the provision is not enforceable against the customer unless the seller, at
14least 15 days but not more than 30 days before the deadline for the customer to
15decline renewal or extension, provides a written notice to the customer containing
16all of the following:
AB181,2,1817
(a) A statement that the contract will be renewed or extended unless the
18customer declines renewal or extension.
AB181,2,1919
(b) The deadline for the customer to decline renewal or extension.
AB181,2,21
20(3) Manner of giving notice. A seller or a person acting on behalf of the seller
21shall give the written notice required under sub. (2) by any of the following methods:
AB181,2,2322
(a) By mailing a copy of the notice by registered or certified mail to the customer
23at the customer's last-known business address.
AB181,2,2524
(b) By giving a copy of the notice personally to an owner, officer, director, or
25managing agent of the customer's business.
AB181,3,4
1(4) Remedies. (a) If a seller attempts to enforce a provision in a business
2contract to which subs. (2) and (3) apply and for which subs. (2) and (3) have not been
3complied with, the customer may commence an action or may file a counterclaim
4against the seller for either of the following:
AB181,3,65
1. An amount that equals twice the amount of the damages incurred by the
6customer.
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2. An amount that equals twice the amount the periodic payment specified in
8the contract or $1,000, whichever is less.
AB181,3,119
(b) Notwithstanding the limitations in s. 814.04 (1), the court shall award a
10customer who prevails in an action or counterclaim under this subsection costs,
11including reasonable attorney fees.
AB181,3,1513
(1) This act first applies to contracts for the lease of business equipment or for
14providing business services that are entered into, modified, or renewed on the
15effective date of this subsection.
AB181,3,1817
(1) This act takes effect on the first day of the 7th month beginning after
18publication.
