AB439: Bill Text

AB439,4,20 2. An all-terrain vehicle dealer registered with the department of natural resources under s. 23.33 (2) (dm) 1.

AB439,4,22 3. A snowmobile dealer registered with the department of natural resources under s. 350.12 (3) (c) 1.

AB439,4,25 (b) "Powersports vehicle dealer" does not include any dealer licensed under subch. I of this chapter with respect to any category of powersports vehicle for which that license applies or any dealer located outside this state.

AB439,5,1 (13) (a) "Powersports vehicle distributor" means any of the following:

AB439,5,4 1. A business entity that is engaged in the business of selling or distributing any powersports vehicle to powersports vehicle dealers or that maintains distributor representatives.

AB439,5,6 2. An all-terrain vehicle distributor registered with the department of natural resources under s. 23.33 (2) (dm) 1.

AB439,5,8 3. A snowmobile distributor registered with the department of natural resources under s. 350.12 (3) (c) 1.

AB439,5,10 4. A factory branch of any powersports vehicle distributor described in subds. 1. to 3.

AB439,5,13 (b) "Powersports vehicle distributor" does not include any distributor licensed under subch. I of this chapter with respect to any category of powersports vehicle for which that license applies.

AB439,5,14 (14) (a) "Powersports vehicle manufacturer" means any of the following:

AB439,5,16 1. A business entity engaged in the business of manufacturing any powersports vehicle for sale to the public.

AB439,5,18 2. An all-terrain vehicle manufacturer registered with the department of natural resources under s. 23.33 (2) (dm) 1.

AB439,5,20 3. A snowmobile manufacturer registered with the department of natural resources under s. 350.12 (3) (c) 1.

AB439,5,22 4. A factory branch of any powersports vehicle manufacturer described in subds. 1. to 3.

AB439,5,25 (b) "Powersports vehicle manufacturer" does not include any manufacturer licensed under subch. I of this chapter with respect to any category of powersports vehicle for which that license applies.

AB439,6,5 (15) "Retail sales program" means a program offered to a powersports vehicle dealer by either a powersports vehicle manufacturer or a powersports vehicle distributor intended to provide to a retail customer an incentive, such as an instant rebate, an extended warranty, cash, or financing, to purchase a powersports vehicle, part, or accessory.

AB439,6,6 (16) "Snowmobile" has the meaning given in s. 340.01 (58a).

AB439,6,12 (17) "Wholesale order program" means a sales program offered by a powersports vehicle manufacturer or a powersports vehicle distributor to a powersports vehicle dealer in which the powersports vehicle dealer purchases powersports vehicles directly from the powersports vehicle manufacturer or powersports vehicle distributor for the purpose of reselling the powersports vehicles to retail customers.

AB439,6,16 218.61 Prohibited practices by powersports vehicle manufacturers and distributors. No powersports vehicle manufacturer or powersports vehicle distributor, and no agent, officer, factory representative, or affiliate of a powersports vehicle manufacturer or powersports vehicle distributor, may do any of the following:

AB439,6,18 (1) Discriminate between powersports vehicle dealers by doing any of the following:

AB439,6,25 (a) Selling or offering to sell a powersports vehicle to one powersports vehicle dealer under a wholesale order program and not offering the same wholesale order program to all powersports vehicle dealers. This paragraph does not prohibit a wholesale order program from providing different benefits to different powersports vehicle dealers based on the level of the wholesale orders placed by the powersports vehicle dealers if the benefits are not tied to incentives or benefits available to the powersports vehicle dealers under a retail sales program.

AB439,7,3 (b) Tying incentives that a powersports vehicle dealer receives under any retail sales program to any order that a powersports vehicle dealer places under a wholesale order program.

AB439,7,5 (c) Offering any retail sales program that includes parts, accessories, prepaid maintenance, and warranties tied to a wholesale order program.

AB439,7,12 (d) Adopting a method or changing an existing method for the allocation, scheduling, or delivery of new powersports vehicles, parts, or accessories to its dealers that is not fair, reasonable, and equitable. Upon the request of a powersports vehicle dealer, a powersports vehicle manufacturer shall disclose in writing to the dealer the general method by which new powersports vehicles, parts, and accessories are allocated, scheduled, or delivered to its dealers handling the same line or make of vehicles.

AB439,7,18 (2) Make to a powersports vehicle dealer a secret payment or allowance of rebates, refunds, commissions, or unearned discounts, whether in the form of money or an extension of special services or privileges to some but not all powersports vehicle dealers purchasing upon like terms and conditions, if the payment or allowance tends to destroy competition and causes injury to any competitor of the powersports vehicle dealer.

AB439,7,24 (3) Give preferential treatment to some powersports vehicle dealers over others by refusing or failing to deliver, in reasonable quantities and within a reasonable time after receipt of an order, to any dealer holding a franchise for a line or make of powersports vehicles sold or distributed by the manufacturer, any new powersports vehicle, part, or accessory, if the powersports vehicle, part, or accessory is being delivered to other dealers.

AB439,8,4 (4) Compete with a powersports vehicle dealer by, for more than one year, acting in the capacity of a powersports vehicle dealer or owning, operating, or controlling, whether directly or indirectly, a powersports vehicle dealership in this state.

AB439,8,8 (5) Prevent or attempt to prevent a dealer from making reasonable changes in the capital structure of a dealership or in the means by which the dealership is financed if the powersports vehicle dealer meets the reasonable, written, and uniformly applied capital requirements determined by the manufacturer.

AB439,8,15 (6) Unreasonably require the powersports vehicle dealer to change the location of, or require any substantial alterations to, the powersports vehicle dealer's place of business. This subsection does not prohibit a powersports vehicle manufacturer or powersports vehicle distributor and a powersports vehicle dealer from entering into an arms-length agreement in which the parties exchange bargained-for consideration and part of the bargained-for consideration is changing locations of the dealership or altering the powersports vehicle dealer's place of business.

AB439,8,17 (7) Fail to hold harmless and indemnify a powersports vehicle dealer against losses, including lawsuits and court costs, arising from any of the following:

AB439,8,21 (a) The manufacture or performance of any powersports vehicle, part, or accessory if the lawsuit involves representations by the manufacturer on the manufacture or performance of a powersports vehicle, and there is no claim of negligence on the part of the powersports vehicle dealer.

AB439,8,23 (b) Damage to merchandise in transit where the manufacturer specifies the carrier.

AB439,9,3 (c) The manufacturer's failure to defend product liability suits concerning the powersports vehicle, part, or accessory provided to the dealer where there is no independent claim against the powersports vehicle dealer.

AB439,9,5 (d) Any other act performed by the manufacturer that is not requested by the powersports vehicle dealer.

AB439,9,7 (8) Unfairly prevent or attempt to prevent a powersports vehicle dealer from receiving reasonable compensation for the value of a powersports vehicle.

AB439,9,9 (9) Deny a powersports vehicle dealer the right of free association with any other powersports vehicle dealer for any lawful purpose.

AB439,9,12 (10) Charge increased prices without having given written notice to the powersports vehicle dealer at least 30 days before the effective date of the price increase.

AB439,9,14 (11) Reimburse anyone other than an authorized powersports vehicle dealer for warranty service performed on a powersports vehicle.

AB439,9,17 (12) Pay less than the amount of the manufacturer's suggested retail price for parts used by powersports vehicle dealers to perform warranty work under a manufacturer's warranty provided to a retail customer.

AB439,9,19 (13) Pay to a powersports vehicle dealer an amount for labor that is less than the amount the dealer charges its retail customers for labor.

AB439,9,22 (14) Require or coerce a powersports vehicle dealer to grant a manufacturer a right of first refusal or other preference to purchase the dealer's franchise or place of business or both unless there is not another financially qualified purchaser.

AB439,9,24 (15) Require that any arbitration proceeding or legal action between the parties take place in a jurisdiction other than this state.

AB439,10,4 218.62 Approved practices by powersports vehicle manufacturers and distributors. Notwithstanding s. 218.61, a powersports vehicle manufacturer or powersports vehicle distributor, and its respective agents, officers, factory representatives, and affiliates, may do any of the following:

AB439,10,6 (1) Offer by auction powersports vehicles to all powersports vehicle dealers under the same terms and not based on a wholesale order program.

AB439,10,9 (2) Provide tiered wholesale programs, tiered wholesale flooring plans, tiered retail programs, and tiered demonstration unit programs to powersports vehicle dealers.

AB439,10,13 (3) Offer programs to all powersports vehicle dealers based on customer satisfaction scores that provide benefits to powersports vehicle dealers that obtain a customer satisfaction score set by the powersports vehicle distributor or powersports vehicle manufacturer.

AB439,10,16 218.63 Penalties and civil actions. (1) Any person who violates s. 218.61 may be required to forfeit not less than $100 nor more than $1,000 for each separate violation.

AB439,10,19 (2) The department shall investigate violations of s. 218.61. The department or the department of justice, after consulting with the department, or any district attorney, upon informing the department, may on behalf of the state:

AB439,10,23 (a) Bring an action for temporary or permanent injunctive or other relief for any violation of s. 218.61. The court may, upon entry of final judgment, award restitution when appropriate to any person suffering loss because of a violation of s. 218.61 if proof of such loss is submitted to the satisfaction of the court.

AB439,10,25 (b) Bring an action in any court of competent jurisdiction for the penalties authorized under sub. (1).

AB439,11,9 (3) In addition to any other available remedies, any person injured by a violation of s. 218.61 may bring a civil action against the person who violated s. 218.61 for temporary or permanent injunctive relief or for damages or both. Upon finding that the defendant is violating or has violated s. 218.61, the court shall enjoin the defendant from continuing the violation, regardless of whether the plaintiff has suffered actual damages. In any action authorized under this subsection, any person who violates s. 218.61 shall be liable for the amount of actual damages caused by the violation and, notwithstanding s. 814.04 (1), the costs of the action, including reasonable attorney fees.

AB439, s. 3 Section 3. Initial applicability.

AB439,11,12 (1) This act first applies to actions taken, and events occurring, on the effective date of this subsection.

AB439, s. 4 Section 4. Effective date.

AB439,11,15 (1) This act takes effect on the first day of the 3rd month beginning after publication.

AB439,11,16 (End)