a. THIS IS A BINDING PRELEASE AGREEMENT. BY SIGNING THIS PRELEASE AGREEMENT, YOU WILL BECOME OBLIGATED TO ENTER INTO AN AGREEMENT WITH THE PROSPECTIVE LESSOR TO LEASE THE MOTOR VEHICLE DESCRIBED IN THIS PRELEASE AGREEMENT WHEN IT IS AVAILABLE AND READY TO BE DELIVERED TO YOU, UPON LEASE TERMS DISCLOSED IN THIS PRELEASE AGREEMENT OR IN THE ATTACHED DISCLOSURE STATEMENT, IF ANY.
b. DO NOT SIGN THIS PRELEASE AGREEMENT BEFORE YOU READ IT, INCLUDING THE WRITING ON THE REVERSE SIDE.
c. DO NOT SIGN THIS IF IT CONTAINS ANY BLANK SPACES.
d. YOU ARE ENTITLED TO AN EXACT COPY OF ANY AGREEMENT YOU SIGN.
218.01(6x)(c)
(c) An exact copy of the prelease agreement shall be furnished by the prospective lessor to the prospective lessee at the time that the prospective lessee signs the prelease agreement. The prospective lessee's copy of the prelease agreement shall contain the signature of the prospective lessor identical with the signature on the original prelease agreement. No prelease agreement shall be signed in blank except that a detailed description of the motor vehicle, including the serial or identification number, that is not available at the time of execution of the prelease agreement may be omitted.
218.01(6x)(d)
(d) A prospective lessor may cancel a prelease agreement that, with regard to the lease terms disclosed in the prelease agreement, is contingent upon approval of the prospective lessee's credit by a sales finance company to whom the prospective lessor intends to assign the consumer lease, if the prelease agreement contains a provision requiring the prospective lessor to give the prospective lessee written notice of such cancellation within 10 business days of execution of the prelease agreement and the notice is given to the prospective lessee.
218.01(6x)(e)
(e) No prelease agreement may contain a clause which, upon nonacceptance of the motor vehicle by the prospective lessee, would subject the prospective lessee to a penalty greater than 5% of the gross capitalized cost of the vehicle.
218.01(7)(a)(a) No manufacturer of motor vehicles, no wholesaler or distributor of motor vehicles, and no officer, agent or representative of either shall induce or coerce, or attempt to induce or coerce, any retail motor vehicle dealer or prospective retail motor vehicle dealer in this state to sell, assign or transfer any retail instalment sales contract, obtained by such dealer in connection with the sale by the dealer in this state of motor vehicles manufactured or sold by such manufacturer, wholesaler or distributor, to a specified sales finance company or class of such companies, or to any other specified person, by any of the acts or means hereinafter set forth, namely:
218.01(7)(a)1.
1. By any statement, suggestion, promise or threat that such manufacturer, wholesaler or distributor will in any manner benefit or injure such dealer, whether such statement, suggestion, threat or promise is express or implied, or made directly or indirectly.
218.01(7)(a)3.
3. By any contract, or any express or implied offer of contract, made directly or indirectly to such dealer, for handling such motor vehicles, on the condition that such dealer sell, assign or transfer the dealer's retail instalment contract thereon, in this state, to a specified sales finance company or class of such companies, or to any other specified person.
218.01(7)(a)4.
4. By any express or implied statement or representation, made directly or indirectly, that such dealer is under any obligation whatsoever to sell, assign or transfer any of the dealer's retail sales contracts, in this state, on motor vehicles manufactured or sold by such manufacturer, wholesaler or distributor to such sales finance company, or class of companies, or other specified person, because of any relationship or affiliation between such manufacturer, wholesaler or distributor and such finance company or companies or such specified person or persons.
218.01(7)(b)
(b) Any such statements, threats, promises, acts, contracts or offers of contracts, set forth in
par. (a) are declared unfair trade practices and unfair competition and against the policy of this state, are unlawful and are prohibited.
218.01(7)(c)
(c) No sales finance company, and no officer, agent or representative thereof, shall induce or coerce or attempt to induce or coerce any retail motor vehicle dealer to transfer to such sales finance company any of the retail instalment sales contracts in this state of such dealer on any motor vehicle by any of the following acts or means, namely:
218.01(7)(c)1.
1. By any statement or representation, express or implied, made directly or indirectly, that the manufacturer, wholesaler or distributor of such motor vehicles will grant such dealer a franchise to handle such motor vehicles if such dealer shall sell, assign or transfer all or part of such retail sales contracts to such sales finance company.
218.01(7)(c)2.
2. By any statement or representation, express or implied, made directly or indirectly, that the manufacturer, wholesaler or distributor of such motor vehicles will in any manner benefit or injure such dealer if such dealer shall or shall not sell, assign or transfer all or part of such retail sales contracts to such sales finance company.
218.01(7)(c)3.
3. By an express or implied statement or representation made directly or indirectly, that there is an express or implied obligation on the part of such dealer to so sell, assign or transfer all or part of such retail sales contracts on such motor vehicles to such sales finance company because of any relationship or affiliation between such sales finance company and the manufacturer, wholesaler or distributor of such motor vehicles.
218.01(7)(d)
(d) Any such statement or representations set forth in
par. (c) are declared to be unfair trade practices and unfair competition and against the policy of this state, are unlawful and are prohibited.
218.01(7)(e)
(e) Any retail motor vehicle dealer who, pursuant to any inducement, statement, promise or threat hereinbefore declared unlawful, shall sell, assign or transfer any or all of the dealer's retail instalment contracts shall not be guilty of any unlawful act and may be compelled to testify to each such act.
218.01(7)(f)
(f) No manufacturer shall directly or indirectly pay or give, or contract to pay or give, anything of service or value to any sales finance company licensee in this state, and no such licensee in this state shall accept or receive or contract or agree to accept or receive directly or indirectly any payment or service of value from any manufacturer, if the effect of the payment or giving of any such thing of service or value by the manufacturer, or the acceptance or receipt thereof by the sales finance company licensee, may be to lessen or eliminate competition or tend to grant an unfair trade advantage or create a monopoly in the licensee who accepts or receives the payment, thing or service of value or contracts or agrees to accept or receive the same.
218.01(7a)(a)(a) A motor vehicle may not be offered for sale by any motor vehicle dealer or motor vehicle salesperson unless the mileage on the motor vehicle is disclosed in writing by the transferor on the certificate of title or on a form or in an automated format authorized by the department of transportation to reassign the title to the dealer and the disclosure is subsequently shown to the retail purchaser by the dealer or salesperson prior to sale. The department of transportation may promulgate rules to exempt types of motor vehicles from this mileage disclosure requirement and shall promulgate rules for making the disclosure requirement on a form or in an automated format other than the certificate of title.
218.01(7a)(b)
(b) It shall be unlawful for any motor vehicle dealer or motor vehicle salesperson to fail to provide, upon request of a prospective purchaser, the name and address of the most recent titled owner and of all subsequent nontitled owners, unless exempted from this requirement by rule of the department of transportation, of any motor vehicle offered for sale. If the most recent titled owner of the motor vehicle is the motor vehicle dealer, the dealer or salesperson shall also provide the name and address of the previous titled owner.
218.01(7a)(c)
(c) Except for motor vehicles obtained by involuntary transfer under
s. 342.17, a person required to be licensed under this chapter may not sell, offer for sale or have possession of a motor vehicle if any of the following applies:
218.01(7a)(c)3.
3. The mileage disclosure statement of the previous owner is not complete.
218.01(7a)(c)4.
4. The assignment or reassignment of ownership by the previous owner is not complete.
218.01(7b)
(7b) Purchase or lease of motor vehicle by minor. No minor shall purchase or lease any motor vehicle unless the minor, at the time of purchase or lease, submits to the seller or lessor a statement verified before a person authorized to administer oaths and made and signed by either parent of the purchaser or lessee, if such parent has custody of the minor or, if neither parent has custody, then by the person having custody, setting forth that the purchaser or lessee has consent to purchase or lease the vehicle. The signature on the statement shall not impute any liability for the purchase price of the motor vehicle or for any payments under the consumer lease to the consenting person. The statement shall not adversely affect any other arrangement for the assumption of liability for the purchase price or any lease payments which the consenting person may make. If a motor vehicle is purchased by a minor, the signed statement shall accompany the application for a certificate of title and shall be filed by the department of transportation with the application. Failure to obtain the consent or to forward it, together with the application for a certificate of title in the event of the purchase of a motor vehicle, shall not void the contract of sale or consumer lease of a motor vehicle in the hands of an innocent holder, without notice, for value and in the ordinary course of business. Any person who sells or leases a motor vehicle to a minor with knowledge of such fact without procuring such a statement may be fined not more than $200 or imprisoned not more than 6 months or both.
218.01(7m)
(7m) Mediation of disputes between licensees. 218.01(7m)(a)(a) A licensee may not file a complaint or petition with the division of hearings and appeals or bring an action under
sub. (9) (a), based on an alleged violation of this section by any other licensee or pursuant to
sub. (3) (f) or
(fm),
(3c) or
(3x), unless the licensee serves a demand for mediation upon the other licensee before or contemporaneous with the filing of the complaint or petition or the bringing of the action. A demand for mediation shall be in writing and served upon the other licensee by certified mail at an address designated for that licensee in the licensor's records. The demand for mediation shall contain a brief statement of the dispute and the relief sought by the licensee filing the demand.
218.01(7m)(b)
(b) Within 20 days after the date a demand for mediation is served, the parties shall mutually select an independent mediator and meet with that mediator for the purpose of attempting to resolve the dispute. The meeting place shall be within this state in a location selected by the mediator. The mediator may extend the date of the meeting for good cause shown by either licensee or upon the stipulation of both licensees.
218.01(7m)(c)
(c) The service of a demand for mediation under
par. (a) shall stay the time for the filing of any complaint or petition with the division of hearings and appeals or for bringing an action under
sub. (9) (a), based on an alleged violation of this section by the other licensee or pursuant to
sub. (3) (f) or
(fm),
(3c) or
(3x), until the representatives of both licensees have met with a mutually selected mediator for the purpose of attempting to resolve the dispute. If a complaint or petition is filed before the meeting, the division of hearings and appeals or the court shall enter an order suspending the proceeding or action until the meeting has occurred and may, upon the written stipulation of all parties to the proceeding or action that they wish to continue to mediate under this subsection, enter an order suspending the proceeding or action for as long a period as the division of hearings and appeals or court considers to be appropriate. A suspension order issued under this paragraph may be revoked upon motion of any party or upon motion of the division of hearings and appeals or the court.
218.01(7m)(d)
(d) The licensor shall encourage licensees under this subsection to establish, maintain and administer a panel of mediators who have the character, ability and training to serve as mediators and who have knowledge of the motor vehicle industry.
218.01(7r)
(7r) Arbitration of disputes between licensees. A manufacturer, importer or distributor and a dealer may agree to submit a dispute arising under a franchise agreement or under this section to binding arbitration. Unless agreed otherwise in an agreement that complies with
subs. (2) (bm) 2. and
(3) (a) 36. d., any arbitration proceeding shall be voluntary, initiated by serving a written demand for arbitration on the other party, and shall be conducted under the provisions of the state of Wisconsin arbitration plan administered by representatives of the licensees.
218.01(7t)
(7t) Immunity and presumption of good faith. A mediator or arbitrator is immune from civil liability for any good faith act or omission within the scope of the mediator's or arbitrator's performance of his or her powers and duties under
sub. (7m) or the arbitration plan referred to in
sub. (7r). Every act or omission of a mediator or arbitrator is presumed to be a good faith act or omission. This presumption may be overcome only by clear and convincing evidence.
218.01(8)
(8) Penalties. Except for
sub. (3) (a) 1.,
3.,
6.,
7.,
11.,
12.,
13.,
20.,
25.,
29. and
30., and except for violations for
sub. (2) (a),
(2a),
(3a) (c) or
(7b), any person violating this section may be required to forfeit not less than $25 nor more than $500 for each violation.
218.01(8m)
(8m) Commencement of action. Upon the request of the licensor, the department of justice or the district attorney may commence an action in the name of the state to recover a forfeiture under
sub. (8). An action under
sub. (8) shall be commenced within 3 years after the occurrence of the unlawful act or practice which is the subject of the action.
218.01(9)(a)(a) Without exhausting any administrative remedy available under an agreement or this section, except as provided in
sub. (3) (f) and
(fm), a licensee may recover damages in a court of competent jurisdiction for pecuniary loss, together with actual costs including a reasonable attorney fee, if the pecuniary loss is caused by any of the following:
218.01(9)(a)1.
1. A violation by any other licensee of
sub. (3) (a) 4.,
11.,
15.,
16.,
17.,
22.,
23.,
24.,
26.,
32.,
35.,
36.,
37.,
38.,
39.,
40.,
41. or
43.
218.01(9)(a)2.
2. Any unfair practice found by a licensor or the division of hearings and appeals under
sub. (5) (a).
218.01(9)(am)
(am) If a court finds that a violation or practice described in
par. (a) 1. or
2. is wilful, a licensee shall recover damages in an amount equal to 3 times the pecuniary loss, together with actual costs including reasonable attorney fees.
218.01(9)(b)
(b) Any retail buyer, lessee or prospective lessee suffering pecuniary loss because of a violation by a licensee of
sub. (3) (a) 4.,
5.,
6.,
8.,
9.,
10.,
11.,
18.,
25. or
31. may recover damages for the loss in any court of competent jurisdiction together with costs, including reasonable attorney fees.
218.01 History
History: 1971 c. 112,
125;
1971 c. 164 ss.
64,
83;
1971 c. 228,
239;
1973 c. 171,
243;
1975 c. 94,
121,
263,
361;
1975 c. 375 s.
44;
1975 c. 407,
421,
422;
1977 c. 29 ss.
1363 to
1372,
1654 (7) (a), (c);
1977 c. 270,
273,
288,
405,
418,
447;
1979 c. 34,
168,
221;
1981 c. 45 ss.
24,
25,
51;
1981 c. 100,
272;
1981 c. 347 s.
80 (2);
1981 c. 382;
1981 c. 390 s.
252;
1983 a. 36 ss.
76,
77,
96 (1);
1983 a. 147,
153,
154;
1983 a. 189 ss.
240,
241,
329 (30);
1983 a. 192,
243,
460;
1985 a. 29,
202,
205,
332;
1987 a. 27,
251;
1989 a. 31,
292,
336,
359;
1991 a. 39,
269,
298,
316;
1993 a. 13,
16,
112,
159,
161,
490;
1995 a. 27,
113,
225,
329,
417;
1997 a. 27,
48,
120,
191,
237.
218.01 Annotation
Section 180.847 (1), 1987 stats. [now s. 180.1502 (1)], prescribing that no foreign corporation transacting business in the state without a certificate of authority, if required, shall be permitted to maintain or defend a civil action or special proceeding, until it obtains a certificate of authority—and s. 218.01 (2) (bd) 3—providing that the obtaining of a license under the Motor Vehicle Dealers Law shall conclusively establish that such distributor is doing business in this state—have entirely different purposes and meanings. Nagle Motors v. Volkswagen N. C. Distributor, 51 W (2d) 413, 187 NW (2d) 374.
218.01 Annotation
When an instalment sale contract is signed in blank it is void. Vic Hansen & Sons, Inc. v. Crowley, 57 W (2d) 106, 203 NW (2d) 728.
218.01 Annotation
"Wilful" under sub. (3) (a) 6. includes both non-accidental and fraudulent acts. State need not prove intent to deceive buyer under sub. (3) (a) 18. Dept. of Transp. v. Transp. Comm. 105 W (2d) 678, 315 NW (2d) 371 (Ct. App. 1981), aff'd 111 W (2d) 80, 330 NW (2d) 159 (1983).
218.01 Annotation
Only licensee may recover under this section; claim must be related to scope of license. Ford Motor Co. v. Lyons, 137 W (2d) 397, 405 NW (2d) 354 (Ct. App. 1987).
218.01 Annotation
Under sub. (3) (b) commissioner may conduct de novo review of department's decision and may substitute own judgment for that of department. DOT v. Office of Com'r of Transp. 159 W (2d) 271, 463 NW (2d) 870 (Ct. App. 1990).
218.01 Annotation
See note to s. 19.21, citing 66 Atty. Gen. 302.
218.01 Annotation
Wisconsin has a compelling interest in applying statutory regulations to banking activities on Indian reservations.
80 Atty. Gen. 337.
218.01 Annotation
Sub. (3) (a) 11. is applicable to manufacturers. Bob Willow Motors, Inc. v. General Motors Corp. 872 F (2d) 788 (1989).
218.01 Annotation
The application of sub. (3x) to a contract executed prior to the enactment of sub. (3x) did not violate the contracts clause of the U.S. constitution. Chrysler Corp. v. Kolosso Auto Sales, Inc. 148 F 3d 892 (1998).
218.01 Annotation
The statute requires an initial determination by the division under sub. (5) (a), but no such requirement is imposed on claims under sub. (3) (a) 11. Mossner Porsche Audi, Inc. v. Volkswagenwerk, A. G. 397 F Supp. 71.
218.015
218.015
Repair, replacement and refund under new motor vehicle warranties. 218.015(1)(a)
(a) "Collateral costs" means expenses incurred by a consumer in connection with the repair of a nonconformity, including the costs of obtaining alternative transportation.
218.015(1)(b)1.
1. The purchaser of a new motor vehicle, if the motor vehicle was purchased from a motor vehicle dealer for purposes other than resale.
218.015(1)(b)2.
2. A person to whom the motor vehicle is transferred for purposes other than resale, if the transfer occurs before the expiration of an express warranty applicable to the motor vehicle.
218.015(1)(b)4.
4. A person who leases a motor vehicle from a motor vehicle lessor under a written lease.
218.015(1)(bd)
(bd) "Demonstrator" means used primarily for the purpose of demonstration to the public.
218.015(1)(bg)
(bg) "Early termination cost" means any expense or obligation a motor vehicle lessor incurs as a result of both the termination of a written lease before the termination date set forth in that lease and the return of a motor vehicle to a manufacturer under
sub. (2) (b) 3. "Early termination cost" includes a penalty for prepayment under a finance arrangement.
218.015(1)(bj)
(bj) "Early termination savings" means any expense or obligation a motor vehicle lessor avoids as a result of both the termination of a written lease before the termination date set forth in that lease and the return of a motor vehicle to a manufacturer under
sub. (2) (b) 3. "Early termination savings" includes an interest charge the motor vehicle lessor would have paid to finance the motor vehicle or, if the motor vehicle lessor does not finance the motor vehicle, the difference between the total amount for which the lease obligates the consumer during the period of the lease term remaining after the early termination and the present value of that amount at the date of the early termination.
218.015(1)(bp)
(bp) "Executive" means used primarily by an executive of a licensed manufacturer, distributor or dealer, and not used for demonstration to the public.
218.015(1)(c)
(c) "Manufacturer" means a manufacturer as defined in
s. 218.01 (1) (L) and agents of the manufacturer, including an importer, a distributor, factory branch, distributor branch and any warrantors of the manufacturer's motor vehicles, but not including a motor vehicle dealer.
218.015(1)(d)
(d) "Motor vehicle" means any motor driven vehicle required to be registered under
ch. 341 or exempt from registration under
s. 341.05 (2), including a demonstrator or executive vehicle not titled or titled by a manufacturer or a motor vehicle dealer, which a consumer purchases or accepts transfer of in this state. "Motor vehicle" does not mean a moped, semitrailer or trailer designed for use in combination with a truck or truck tractor.
218.015(1)(em)
(em) "Motor vehicle lessor" means a person who holds title to a motor vehicle leased to a lessee, or who holds the lessor's rights, under a written lease.
218.015(1)(f)
(f) "Nonconformity" means a condition or defect which substantially impairs the use, value or safety of a motor vehicle, and is covered by an express warranty applicable to the motor vehicle or to a component of the motor vehicle, but does not include a condition or defect which is the result of abuse, neglect or unauthorized modification or alteration of the motor vehicle by a consumer.
218.015(1)(h)
(h) "Reasonable attempt to repair" means any of the following occurring within the term of an express warranty applicable to a new motor vehicle or within one year after first delivery of the motor vehicle to a consumer, whichever is sooner:
218.015(1)(h)1.
1. The same nonconformity with the warranty is subject to repair by the manufacturer, motor vehicle lessor or any of the manufacturer's authorized motor vehicle dealers at least 4 times and the nonconformity continues.
218.015(1)(h)2.
2. The motor vehicle is out of service for an aggregate of at least 30 days because of warranty nonconformities.
218.015(2)(a)(a) If a new motor vehicle does not conform to an applicable express warranty and the consumer reports the nonconformity to the manufacturer, the motor vehicle lessor or any of the manufacturer's authorized motor vehicle dealers and makes the motor vehicle available for repair before the expiration of the warranty or one year after first delivery of the motor vehicle to a consumer, whichever is sooner, the nonconformity shall be repaired.
218.015(2)(b)1.1. If after a reasonable attempt to repair the nonconformity is not repaired, the manufacturer shall carry out the requirement under
subd. 2. or
3., whichever is appropriate.
218.015(2)(b)2.a.
a. Accept return of the motor vehicle and replace the motor vehicle with a comparable new motor vehicle and refund any collateral costs.
218.015(2)(b)2.b.
b. Accept return of the motor vehicle and refund to the consumer and to any holder of a perfected security interest in the consumer's motor vehicle, as their interest may appear, the full purchase price plus any sales tax, finance charge, amount paid by the consumer at the point of sale and collateral costs, less a reasonable allowance for use. Under this subdivision, a reasonable allowance for use may not exceed the amount obtained by multiplying the full purchase price of the motor vehicle by a fraction, the denominator of which is 100,000 or, for a motorcycle, 20,000, and the numerator of which is the number of miles the motor vehicle was driven before the consumer first reported the nonconformity to the motor vehicle dealer.
218.015(2)(b)3.a.a. With respect to a consumer described in
sub. (1) (b) 4., accept return of the motor vehicle, refund to the motor vehicle lessor and to any holder of a perfected security interest in the motor vehicle, as their interest may appear, the current value of the written lease and refund to the consumer the amount the consumer paid under the written lease plus any sales tax and collateral costs, less a reasonable allowance for use.
218.015(2)(b)3.b.
b. Under this subdivision, the current value of the written lease equals the total amount for which that lease obligates the consumer during the period of the lease remaining after its early termination, plus the motor vehicle dealer's early termination costs and the value of the motor vehicle at the lease expiration date if the lease sets forth that value, less the motor vehicle lessor's early termination savings.
218.015(2)(b)3.c.
c. Under this subdivision, a reasonable allowance for use may not exceed the amount obtained by multiplying the total amount for which the written lease obligates the consumer by a fraction, the denominator of which is 100,000 and the numerator of which is the number of miles the consumer drove the motor vehicle before first reporting the nonconformity to the manufacturer, motor vehicle lessor or motor vehicle dealer.
218.015(2)(c)
(c) To receive a comparable new motor vehicle or a refund due under
par. (b) 1. or
2., a consumer described under
sub. (1) (b) 1.,
2. or
3. shall offer to the manufacturer of the motor vehicle having the nonconformity to transfer title of that motor vehicle to that manufacturer. No later than 30 days after that offer, the manufacturer shall provide the consumer with the comparable new motor vehicle or refund. When the manufacturer provides the new motor vehicle or refund, the consumer shall return the motor vehicle having the nonconformity to the manufacturer and provide the manufacturer with the certificate of title and all endorsements necessary to transfer title to the manufacturer.
