CHAPTER 421
CONSUMER TRANSACTIONS — GENERAL PROVISIONS AND DEFINITIONS
SUBCHAPTER I
SHORT TITLE, CONSTRUCTION,
GENERAL PROVISIONS
421.102 Purposes; rules of construction.
421.104 Construction against implied repeal.
421.106 Settlement of claims; agreement to forego rights; waiver.
421.107 Effect of chapters 421 to 427 on powers of organizations.
421.108 Obligation of good faith.
SUBCHAPTER II
SCOPE AND JURISDICTION
421.201 Territorial application.
421.203 Partial exclusion for governmentally insured or guaranteed transactions.
SUBCHAPTER III
DEFINITIONS
421.301 General definitions.
SHORT TITLE, CONSTRUCTION,
GENERAL PROVISIONS
421.101
421.101
Short title. Chapters 421 to
427 shall be known and may be cited as the Wisconsin consumer act.
421.101 History
History: 1971 c. 239.
421.102
421.102
Purposes; rules of construction. 421.102(1)
(1)
Chapters 421 to
427 shall be liberally construed and applied to promote their underlying purposes and policies.
421.102(2)(a)
(a) To simplify, clarify and modernize the law governing consumer transactions;
421.102(2)(b)
(b) To protect customers against unfair, deceptive, false, misleading and unconscionable practices by merchants;
421.102(2)(c)
(c) To permit and encourage the development of fair and economically sound consumer practices in consumer transactions; and
421.102(2)(d)
(d) To coordinate the regulation of consumer credit transactions with the policies of the federal consumer credit protection act.
421.102(3)
(3) A reference to a provision of
chs. 421 to
427 includes reference to a related rule or order of the administrator adopted under
chs. 421 to
427.
421.102 History
History: 1971 c. 239;
1979 c. 89.
421.102 Annotation
Consumer act penalties are improper when the underlying contract is tainted with illegality. Shea v. Grafe,
88 Wis. 2d 538,
274 N.W.2d 670 (1979).
421.102 Annotation
The consumer act may constitutionally regulate sales to residents by out-of-state mail order retailer. Aldens, Inc. v. LaFollette,
552 F.2d 745.
421.102 Annotation
Wisconsin consumer act — a critical analysis. Heiser, 57 MLR 389.
421.102 Annotation
Wisconsin consumer act — a freak out? Barrett, Jones, 57 MLR 483.
421.102 Annotation
Protection for consumers against unfair and deceptive business. Jeffries, 57 MLR 559.
421.102 Annotation
An overview of the Wisconsin consumer act. Stute, 1973 WBB No. 1.
421.102 Annotation
Private enforcement of consumer laws in Wisconsin. Waxman. WBB May 1983.
421.102 Annotation
Wisconsin consumer credit laws before and after the consumer act. Crandall, 1973 WLR 334.
421.102 Annotation
Usury and the time-price differential. 1975 WLR 246.
421.102 Annotation
Mandatory Arbitration of Consumer Rights Cases. Schneider & Quirk. Wis. Law. Sept. 2002.
421.103(1)(1) Unless superseded by the particular provisions of
chs. 421 to
427,
chs. 401 to
411 and the principles of law and equity, including the law relative to capacity to contract, principal and agent, estoppel, fraud, misrepresentation, duress, coercion, mistake, bankruptcy, or other validating or invalidating cause supplement
chs. 421 to
427.
421.103(2)
(2) Unless terms used in
chs. 421 to
427 are defined by particular provisions of
chs. 421 to
427, they shall have the meaning given them in
chs. 401 to
411 and
429, if they are defined in
chs. 401 to
411 and
429.
421.103(3)
(3) Unless superseded by the particular provisions of
chs. 421 to
427 parties to a consumer transaction have all of the obligations, duties, rights and remedies provided in
chs. 401 to
411 which apply to the transaction.
421.104
421.104
Construction against implied repeal. Chapters 421 to
427 being a general act intended as a unified coverage of the subject matter of such chapters, no part of
chs. 421 to
427 shall be deemed to be impliedly repealed by subsequent legislation if such construction can reasonably be avoided.
421.104 History
History: 1971 c. 239;
1979 c. 89.
421.106
421.106
Settlement of claims; agreement to forego rights; waiver. 421.106(1)(1) Except as otherwise provided in
chs. 421 to
427, a customer may not waive or agree to forego rights or benefits under
chs. 421 to
427.
421.106(2)
(2) A claim by a customer against a merchant for an excess charge, other violation of
chs. 421 to
427 or civil penalty, or a claim against a customer for default or breach of a duty imposed by
chs. 421 to
427, if disputed in good faith, may be settled by agreement.
421.106(3)
(3) A claim, whether or not disputed, against a customer may be settled for less value than the amount claimed.
421.106(4)
(4) A settlement in which the customer waives or agrees to forego rights or benefits under
chs. 421 to
427 is invalid if the court as a matter of law finds the settlement to be unconscionable at the time it was made. In this regard the court may consider the competence of the customer as measured by his or her education, ability to speak and read the language of the contract, and his or her prior consumer experience; any deception or coercion practiced upon the customer; the nature and extent of the legal advice received by the customer; and the value of the consideration.
421.106 History
History: 1971 c. 239;
1979 c. 89.
421.106 Annotation
An arbitration provision explicitly prohibiting a consumer from proceeding as part of a class was unconscionable. Permitting predispute waivers of class proceedings would be contrary to the Wisconsin Consumer Act's purpose of protecting consumers from unfair practices. Cottonwood Financial, LTD v. Estes, 2010 WI App 75, ___ Wis. 2d ___,
784 N.W.2d 726,
09-0760.
