218.01(2)(bm)3.
3. Notwithstanding
subd. 1. b., an agreement may require a dealer or distributor to submit disputes to a nonbinding and reasonably prompt dispute resolution procedure before bringing an action in another forum.
218.01(2)(bo)1.
1. A settlement agreement that is entered into by a dealer or distributor voluntarily and that waives rights, remedies or defenses with respect to a particular dispute existing when the settlement agreement is reached.
218.01(2)(bo)2.
2. An agreement, made after a dealer receives notice under
sub. (3) (f) 1., which waives the dealer's right to file a complaint protesting the establishment or relocation of a dealership proposed in the notice.
218.01(2)(bs)
(bs) A manufacturer, distributor or importer shall designate in writing the area of sales responsibility assigned to a motor vehicle dealer. A manufacturer, distributor or importer may not modify the area of sales responsibility to avoid the requirements of
sub. (3) (f).
218.01(2)(c)1.1. Except as provided in
subd. 2., all licenses shall be granted or refused within 60 days after the licensor receives the application for the license.
218.01(2)(c)2.a.a. In cases where a complaint of unfair cancellation of a dealer agreement is in the process of being heard, no replacement application for the agreement may be considered until a decision is rendered by the division of hearings and appeals.
218.01(2)(c)2.b.
b. In cases where a complaint has been filed under
sub. (3) (f) protesting the proposed establishment or relocation of a dealership in a relevant market area, no license may be issued until the division of hearings and appeals has rendered a decision permitting the issuance of the license.
218.01(2)(cm)1.1. Licenses described in
par. (dr) expire on December 31 of the calendar year for which the licenses are granted.
218.01(2)(cm)2.
2. The department of transportation shall promulgate rules establishing the license period for each type of license described in
par. (d) 1. to
6.
218.01(2)(cm)3.
3. The department of transportation may promulgate rules establishing expiration dates for the various types of licenses described in
par. (d) 1. to
6.
218.01(2)(cm)4.
4. The division of banking shall promulgate rules establishing the license period for the license described in
par. (d) 8.
218.01(2)(cm)5.
5. The division of banking may promulgate rules establishing expiration dates for licenses issued under
par. (d) 8.
218.01(2)(d)
(d) Subject to
par. (dm), the fee for licenses described in this paragraph equals the number of years in a license period multiplied by whichever of the following applies:
218.01(2)(d)1.
1. For motor vehicle dealers, to the department of transportation, $20 for each office or branch thereof, plus $1 for a supplemental license for each used motor vehicle lot within the same municipality, but not immediately adjacent to the office or to a branch.
218.01(2)(d)2.
2. For motor vehicle manufacturers, $20; and for each factory branch in this state, $20.
218.01(2)(d)3.
3. For distributors or wholesalers, the same as for dealers.
218.01(2)(d)4.
4. Any person licensed under
subd. 2. or
3. next preceding, may also operate as a motor vehicle dealer, without any additional fee.
218.01(2)(d)6.
6. For factory representative, or distributor branch representative, $4.
218.01(2)(d)8.a.a. Except as provided in
subd. 8. b., for motor vehicle dealers, to the division of banking, $10.
218.01(2)(d)8.b.
b. For motor vehicle dealers that operate as a sales finance company or that carry or retain retail instalment contracts or consumer leases for more than 30 days, to the division of banking, the same as for sales finance companies under
par. (dr).
218.01(2)(dm)1.1. If the department of transportation or division of banking establishes a license period that is not evenly divisible into years, the department of transportation or division of banking shall prorate the remainder when determining the license fee under
par. (d).
218.01(2)(dm)2.
2. If the department of transportation or division of banking grants a license described under
par. (d) during the license period, the fee for the license shall equal the applicable dollar amount under
par. (d) 1. to
8. multiplied by the number of calendar years, including parts of calendar years, during which the license remains in effect. A fee determined under this subdivision may not exceed the license fee for an entire license period under
par. (d).
218.01(2)(dr)
(dr) The fee for licenses for sales finance companies for each calendar year, or part of a calendar year, is based on the gross volume of purchases of retail instalment contracts and consumer leases of motor vehicles sold or leased in this state for the 12 months immediately preceding October 31 of the year in which the application for license is made, as follows: On a gross volume of $100,000 or less, $50; and on each $100,000 or part thereof over $100,000, an additional $15. No extra charge shall be made for branch licenses for sales finance companies. Gross volume shall be based on the unpaid balance of the retail instalment contracts and the base lease payments, as defined in
s. 429.104 (4), of the consumer leases.
218.01(2)(e)
(e) The licenses of dealers, manufacturers, factory branches, distributors, distributor branches and sales finance companies shall specify the location of the office or branch and must be conspicuously displayed there. In case such location be changed, the licensor shall indorse the change of location on the license without charge if it be within the same municipality. A change of location to another municipality shall require a new license, except for sales finance companies.
218.01(2)(f)
(f) Every salesperson, factory representative or distributor representative shall carry his or her license when engaged in business, and display the license upon request. The license shall name his or her employer, and in case of leaving an employer, the salesperson shall immediately surrender the license to his or her employer who shall mail the license to the licensor. If during the license period the individual again is employed or acts as a salesperson, he or she shall make application for reissue of a salesperson's license. There shall be no fee in connection with such subsequent applications.
218.01(2)(g)
(g) Every sales finance company shall be required to procure a salesperson's license for itself or its employes in order to sell motor vehicles repossessed by it.
218.01(2)(h)1.1. 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 this section, the licensor may require the applicant or licensee to furnish information relating to the applicant's or licensee's solvency and financial standing.
218.01(2)(h)2.
2. Provided the licensor has reasonable cause to doubt the financial responsibility of the applicant or licensee or the compliance by the applicant or licensee with this section, the licensor may require the applicant or licensee to furnish and maintain a 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 this section. The bonds shall be executed in the name of the department of transportation for the benefit of any aggrieved parties; provided that the aggregate liability of the surety to all such parties shall, in no event, exceed the amount of the bond. The bonding requirements in this subdivision 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
par. (bb) 1.
218.01(2)(h)3.
3. An applicant or licensee furnishing information under
subd. 1. 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 such cases, the court shall weigh the need for confidentiality of the information against the public interest in the disclosure.
218.01(2)(i)
(i) 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
par. (d) 8. The division of banking may not refund the fee required under
par. (d) 8. 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 this section relating to sales finance companies.
218.01(2)(j)
(j) A motor vehicle dealer licensed in accordance with the provisions of this section shall make reports to the licensor at such intervals and showing such information as the licensor may require.
218.01(2)(k)
(k) 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 employe 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:
218.01(2)(k)1.
1. Intends in good faith to act as a motor vehicle salesperson.
218.01(2)(k)3.
3. Has had experience or training in, or is otherwise qualified for, selling or leasing motor vehicles.
218.01(2)(k)4.
4. Is a resident of this state, unless application is for a nonresident motor vehicle salesperson's license.
218.01(2)(k)5.
5. Is reasonably familiar with the motor vehicle sales or consumer lease laws or contracts that the applicant is proposing to solicit, negotiate or effect.
218.01(2a)
(2a) Changes in places of business to be reported. 218.01(2a)(a)(a) Before changing the location of a place of business or opening a new place of business in a municipality in which authorized to do business, a licensed dealer, distributor, or manufacturer shall apply to the department of transportation for an amended license. The department of transportation shall issue such license without charge.
218.01(2a)(b)
(b) Whenever a licensed dealer, distributor, manufacturer or transporter opens a new place of business, the licensee shall promptly report such fact, including the address thereof, to the department of transportation.
218.01(2a)(c)
(c) Whenever a licensed dealer, distributor or manufacturer discontinues or disposes of his or her business, such person shall promptly report such fact to the department of transportation and return the license and registration plates issued. Whenever a licensed dealer, distributor or manufacturer discontinues business due to license suspension or revocation, such person shall surrender the licenses and registration plates to the department of transportation for such suspension or revocation period.
218.01(2a)(d)
(d) Any dealer, distributor, manufacturer or transporter who fails to comply with the requirements of this subsection may be fined not more than $200 or imprisoned not more than 6 months or both.
218.01(2c)
(2c) Factory stores. A manufacturer, importer or distributor, or a subsidiary thereof, shall not own, operate or control a motor vehicle dealership in this state. This subsection does not prohibit any of the following:
218.01(2c)(a)
(a) The ownership and operation by a manufacturer, importer or distributor, or a subsidiary thereof, of a dealership for a temporary period, not to exceed one year, during the transition from one owner or operator to another.
218.01(2c)(b)
(b) The ownership or control of a dealership by a manufacturer, importer or distributor, or a subsidiary thereof, if the dealership is being sold under a bona fide contract or purchase option to the operator of the dealership, or a contract exists under which the operator of the dealership can expect to acquire full ownership of or a controlling interest in the dealership, and after the transfer of ownership is completed the dealership will no longer be owned, operated or controlled by the manufacturer, importer or distributor, or a subsidiary thereof.
218.01(2c)(c)
(c) The ownership, operation or control of a dealership by a manufacturer, importer or distributor, or subsidiary thereof, which does not meet the conditions under
par. (a) or
(b), if the division of hearings and appeals determines, after a hearing on the matter at the request of any party, that there is no prospective independent dealer available to own and operate the dealership in a manner consistent with the public interest and that meets the reasonable standard and uniformly applied qualifications of the manufacturer, importer or distributor.
218.01(2d)(a)(a) A manufacturer, importer or distributor shall disclose in writing to a motor vehicle dealer, at or before delivery to the dealer, any damage and repair to a new motor vehicle occurring after the manufacturing process is complete but before delivery to the dealer, if the cost of the repair exceeds 6% of the manufacturer's suggested retail price, as measured by retail repair costs. Replacement of glass, tires, bumpers, fenders, moldings, audio equipment, instrument panels, hoods and deck lids with identical manufacturer's original equipment is not considered damage and repair under this paragraph. If a manufacturer, importer or distributor fails to make a disclosure of damage and repair under this paragraph, it shall be liable to the dealer for any liability imposed on the dealer for a failure on the part of the dealer to disclose that damage and repair.
218.01(2d)(b)
(b) If the cost of repairing damage to a new motor vehicle that occurs before delivery to the dealer's location exceeds 6% of the manufacturer's suggested retail price, as measured by retail repair costs, the dealer may reject or, if title has passed to the dealer, require the manufacturer, importer or distributor who delivered the vehicle to repurchase the vehicle within 10 business days after delivery, unless the damage occurred during shipment and the method of transportation, carrier or transporter of the motor vehicle was designated by the motor vehicle dealer. Upon repurchase, the manufacturer, importer or distributor shall be subrogated to all of the dealer's rights against the carrier or transporter of the motor vehicle regarding damage. The cost of repairing glass, tires, bumpers, moldings and audio equipment with identical manufacturer's original equipment shall not be included in determining the cost of repairing damage under this paragraph.
218.01(2d)(c)
(c) This subsection does not apply to motorcycles that are delivered in a crated, disassembled condition to the dealer or the dealer's agent.
218.01(2f)
(2f) Vehicle allocations. No manufacturer, importer or distributor shall adopt, change, establish or implement a plan or system for the allocation, scheduling or delivery of new motor vehicles, parts or accessories to its motor vehicle dealers that is not fair, reasonable and equitable or modify an existing plan or system so as to cause the plan or system to be unreasonable, unfair or inequitable. Upon the request of any dealer franchised by it, a manufacturer, importer or distributor shall disclose in writing to the dealer the basis upon which new motor vehicles, parts and accessories are allocated, scheduled and delivered among the manufacturer's, importer's or distributor's dealers of the same line make.
218.01(2g)
(2g) Performance standards. Any performance standard or program for measuring dealership performance that may have a material effect on a dealer, and the application of any such standard or program by a manufacturer, importer or distributor, shall be fair, reasonable and equitable. Upon the request of any dealer, a manufacturer, importer or distributor shall disclose in writing to the dealer a description of how a performance standard or program is designed and all relevant information used in the application of the performance standard or program to that dealer.
218.01(2w)(a)(a) In this subsection, "dealer cost" means the wholesale cost for a part as listed in the manufacturer's, importer's or distributor's current price schedules or, if the part is not so listed, the dealer's original invoice cost for the part.
218.01(2w)(b)
(b) A manufacturer, importer or distributor shall, for the protection of the buying public, specify the delivery and preparation obligations of its dealers before delivery of new motor vehicles to retail buyers. A copy of the delivery and preparation obligations of its dealers shall be filed with the department of transportation by every licensed motor vehicle manufacturer, importer or distributor and shall constitute the dealer's only responsibility for product liability as between the dealer and the manufacturer, importer or distributor. Any mechanical, body or parts defects arising from any express or implied warranties of the manufacturer, importer or distributor shall constitute the manufacturer's, importer's or distributor's product or warranty liability. The manufacturer, importer or distributor shall reasonably compensate any authorized dealer who performs work to rectify the manufacturer's, importer's or distributor's product or warranty defects or delivery and preparation obligations or who performs any other work required, requested or approved by the manufacturer, importer or distributor or for which the manufacturer, importer or distributor has agreed to pay, including compensation for labor at a labor rate equal to the effective labor rate charged all customers and for parts at an amount not less than the amount the dealer charges its other retail service customers for parts used in performing similar work by the dealer.
218.01(2w)(c)
(c) To be eligible for compensation for parts under
par. (b), a dealer shall notify the manufacturer, importer or distributor in writing of the amounts that the dealer charges its other retail service customers for parts and request that it be paid for parts in accordance with this subsection. The notice may be limited to the dealer's average markup over dealer cost that the dealer charges its other retail service customers for parts used to perform similar work. The notice shall be served upon the manufacturer, importer or distributor not less than 30 days before the date on which the dealer requests that the manufacturer, importer or distributor begin paying the dealer for parts at the stated amounts. The manufacturer, importer or distributor shall pay the dealer, as provided in this subsection, at the amounts stated in the dealer notice for parts used in work performed on and after the beginning date stated in the notice.
218.01(2w)(d)
(d) The manufacturer, importer or distributor may require the dealer, at reasonable intervals, to provide the manufacturer, importer or distributor with documents or information regarding a reasonable number of sales to other retail service customers of parts used by the dealer to perform similar work in order to substantiate that the amounts requested in the dealer's notice are consistent with the amounts that the dealer charges its other retail service customers for parts used by the dealer to perform similar work.
218.01(2w)(e)
(e) A manufacturer, importer or distributor who fails to compensate a dealer for parts at an amount not less than the amount the dealer charges its other retail service customers for parts used to perform similar work shall not be found to have violated this subsection if the manufacturer, importer or distributor shows that the amount is not reasonably competitive to the amounts charged to retail service customers by other similarly situated franchised motor vehicle dealers in this state for the same parts when used by those dealers to perform similar work.
218.01(2w)(f)
(f) If a manufacturer, importer or distributor furnishes a part to a dealer at no cost for use by the dealer in performing work for which the manufacturer, importer or distributor is required to compensate the dealer under this subsection, the manufacturer, importer or distributor shall compensate the dealer for the part at an amount not less than the amount the dealer charges its other retail customers for parts when used to perform similar work less the wholesale cost for such part as listed in the manufacturer's current price schedules. A manufacturer, importer or distributor may pay the dealer a reasonable handling fee instead of the compensation otherwise required by this subsection for special high-performance complete engine assemblies furnished to the dealer at no cost, provided that the manufacturer, importer or distributor excludes special high-performance complete engine assemblies in determining whether the amounts requested in the dealer's notice are consistent with the amounts that the dealer charges its other retail service customers for parts used by the dealer to perform similar work.
218.01(2w)(g)
(g) A claim made by a franchised motor vehicle dealer for compensation under this subsection shall be either approved or disapproved within 30 days after the claim is submitted to the manufacturer, importer or distributor in the manner and on the forms the manufacturer, importer or distributor reasonably prescribes. An approved claim shall be paid within 30 days after its approval; and, if a claim is not specifically disapproved in writing or by electronic transmission within 30 days after the date on which the manufacturer, importer or distributor receives it, the claim shall be considered to be approved and payment shall follow within 30 days. A manufacturer, importer or distributor retains the right to audit claims for a period of one year after the date on which the claim is paid and to charge back any amounts paid on claims that are false or unsubstantiated. If there is evidence of fraud, this paragraph does not limit the right of the manufacturer to audit for longer periods and charge back for any fraudulent claim, subject to the limitations period under
s. 893.93 (1) (b).
218.01(2x)
(2x) Promotional allowances. A claim made by a franchised motor vehicle dealer for promotional allowances or other incentive payments shall be either approved or disapproved within 30 days after the claim is submitted to the manufacturer, importer or distributor in the manner and on the forms the manufacturer, importer or distributor reasonably prescribes. An approved claim shall be paid within 30 days after its approval; and, if a claim is not specifically disapproved in writing or by electronic transmission within 30 days after the date on which the manufacturer, importer or distributor receives it, the claim shall be considered to be approved and payment shall follow within 30 days after approval. A manufacturer, importer or distributor retains the right to audit a claim for a period of 2 years after the date on which the claim is paid and to charge back any amounts paid on claims that are false or unsubstantiated. If there is evidence of fraud, this subsection does not limit the right of the manufacturer to audit for longer periods and charge back for any fraudulent claim, subject to the limitations period under
s. 893.93 (1) (b).
218.01(3)
(3) Licenses, how denied, suspended or revoked. 218.01(3)(a)(a) A license may be denied, suspended or revoked on the following grounds:
218.01(3)(a)3.
3. Filing a materially false or fraudulent income or franchise tax return as certified by the department of revenue.
218.01(3)(a)4.
4. Wilful failure to comply with any provision of this section or any rule or regulation promulgated by the licensor under this section.
218.01(3)(a)5.
5. Wilfully defrauding any retail buyer, lessee or prospective lessee to the buyer's, lessee's or prospective lessee's damage.
218.01(3)(a)6.
6. Wilful failure to perform any written agreement with any retail buyer, lessee or prospective lessee.
218.01(3)(a)7.
7. Failure or refusal to furnish and keep in force any bond required.
218.01(3)(a)8.
8. Having made a fraudulent sale, consumer lease, prelease agreement, transaction or repossession.
218.01(3)(a)9.
9. 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.
218.01(3)(a)10.
10. Employment of fraudulent devices, methods or practices in connection with compliance with the statutes with respect to the retaking of goods under retail instalment contracts or consumer leases and the redemption and resale or subsequent lease of such goods.
218.01(3)(a)11.
11. Having indulged in any unconscionable practice relating to said business.
218.01(3)(a)13.
13. Having sold a retail instalment contract or consumer lease to a sales finance company not licensed hereunder.
218.01(3)(a)14.
14. Having violated any law relating to the sale, lease, distribution or financing of motor vehicles.
218.01(3)(a)15.
15. 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 subdivision 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.
218.01(3)(a)16.
16. Being a manufacturer of motor vehicles, factory branch, distributor, field representative, officer, agent or any representative whatsoever of such 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 such manufacturer, factory branch or representative thereof, or to do any other act unfair to said dealer, by threatening to cancel any franchise existing between such manufacturer, factory branch or representative thereof and said dealer.
218.01(3)(a)17.
17. Subject to
sub. (3n), 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. In this subdivision, "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; and "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.
