NOTICE TO DEALER
YOU HAVE THE RIGHT TO: 1) MEDIATE IF YOU OPPOSE THE PROPOSED TERMINATION OR NONRENEWAL OF YOUR FRANCHISE AND 2) A HEARING BY THE DIVISION OF HEARINGS AND APPEALS IF MEDIATION DOES NOT RESOLVE THE DISPUTE. TO PRESERVE THESE RIGHTS, YOU MUST TAKE CERTAIN STEPS ON OR BEFORE THE DATE THAT THE PROPOSED TERMINATION OR NONRENEWAL TAKES EFFECT. FOR FURTHER INFORMATION, CONSULT YOUR ATTORNEY OR CALL THE DEALER SECTION, WISCONSIN DEPARTMENT OF TRANSPORTATION, AT.... (insert area code and telephone number).
218.01(2)(bd)2.
2. Any dealer or distributor discontinued or canceled may, on or before the date on which the discontinuation or cancellation becomes effective, file with the department of transportation and division of hearings and appeals and serve upon the respondent a complaint for a determination of unfair discontinuation or cancellation under
sub. (3) (a) 17. Allowing opportunity for an answer, the division of hearings and appeals shall thereafter schedule a hearing on and decide the matter. Agreements and certificates of appointment shall continue in effect until final determination of the issues raised in such complaint. If the complainant prevails he or she shall have a cause of action against the defendant for reasonable expenses and attorney fees incurred by him or her in such matter.
218.01(2)(bd)3.
3. No manufacturers', distributors' or importers' vehicles shall be sold in this state unless either the manufacturer on direct dealerships of domestic vehicles, the importer of foreign manufactured vehicles on direct dealerships or the distributor on indirect dealerships of either domestic or foreign vehicles are licensed under
s. 218.01. The obtaining of a license under
s. 218.01 shall conclusively establish that such manufacturer, distributor or importer is doing business in this state and shall subject the licensee to all provisions of the Wisconsin statutes regulating manufacturers, importers and distributors.
218.01(2)(bf)
(bf) Within 60 days after the department of transportation issues a declaratory ruling under
s. 227.41 that an agreement is inconsistent with
par. (bm), a manufacturer, distributor or importer shall remove or revise any provision of the agreement declared to be inconsistent with
par. (bm).
218.01(2)(bm)1.1. Except as provided in
par. (bo), provisions of an agreement which do any of the following are void and prohibited:
218.01(2)(bm)1.a.
a. Waive a remedy or defense available to a distributor or dealer or other provision protecting the interests of a distributor or dealer under this section or under rules promulgated by the department of transportation under this section.
218.01(2)(bm)1.b.
b. Prevent a dealer or distributor from bringing an action in a particular forum otherwise available under the law.
218.01(2)(bm)1.c.
c. Require a motor vehicle dealer to pay the attorney fees of a manufacturer, importer or distributor.
218.01(2)(bm)2.a.a. Notwithstanding
subd. 1. b. and subject to
sub. (3) (a) 36. d., an agreement may provide for the resolution of disputes by arbitration, including binding arbitration, if both parties to the agreement voluntarily agree to an arbitration provision. An arbitrator acting under this
subd. 2. a. shall be bound by the laws of this state, including
par. (bd) 2. and other provisions of this section.
218.01(2)(bm)2.b.
b. No finding of an arbitrator is binding upon any person who is not a party to the agreement. A finding of an arbitrator does not bind the department of transportation with respect to enforcement of this section.
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 periodic 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. A designation under this subdivision 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 workforce development or a county child support agency under
s. 59.53 (5).
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)(ie)1.1. In addition to any other information required under this subsection, an application by an individual for the issuance or renewal of a license described in
par. (d) 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
par. (d) 1.,
2.,
3. or
5. shall include the person's federal employer identification number. The licensor may not disclose any information received under this subdivision to any person except the department of industry, labor and job development [department of workforce development] for purposes of administering
s. 49.22 or the department of revenue for the sole purpose of requesting certifications under
s. 73.0301.
218.01 Note
NOTE: The department of industry, labor and job development was changed to the department of workforce development by
1997 Wis. Act 3. Corrective legislation is pending.
218.01(2)(ie)2.
2. The licensor shall deny an application for the issuance or renewal of a license if the information required under
subd. 1. is not included in the application.
218.01(2)(ig)1.1. In addition to any other information required under this subsection, an application for a license described in
par. (dr) shall include the following:
218.01(2)(ig)1.a.
a. In the case of an individual, the individual's social security number.
218.01(2)(ig)1.b.
b. In the case of a person that is not an individual, the person's federal employer identification number.
218.01(2)(ig)2.
2. The licensor may not disclose any information received under
subd. 1. to any person except as follows:
218.01(2)(ig)2.a.
a. The licensor may disclose information under
subd. 1. to the department of revenue for the sole purpose of requesting certifications under
s. 73.0301.
218.01(2)(ig)2.b.
b. The licensor may disclose information under
subd. 1. a. to the department of industry, labor and job development [department of workforce development] in accordance with a memorandum of understanding under
s. 49.857.
218.01 Note
NOTE: The department of industry, labor and job development was changed to the department of workforce development by
1997 Wis. Act 3. Corrective legislation is pending.
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.
