Chapter 218

218.163(3)(a)1. 1. Conviction of the successor of a felony or any crime of fraud, deceit, or moral turpitude.

218.163(3)(a)2. 2. Bankruptcy or insolvency of the successor during the past 10 years.

218.163(3)(a)3. 3. Prior termination by the manufacturer of the successor for breach of a dealer agreement.

218.163(3)(a)4. 4. The lack of an active line of credit for the successor sufficient to purchase the manufacturer’s product.

218.163(3)(a)5. 5. The lack of any license for the successor required by law.

218.163(3)(b) (b) The manufacturer or distributor has the burden of proof regarding its objection. A family member may not succeed to a dealership if the succession involves, without the manufacturer’s or distributor’s consent, a relocation of the business or an alteration of the terms and conditions of the dealer agreement.

218.163 History History: 2023 a. 164.

218.164 218.164 Warranty obligation.

218.164(1) (1) Each warrantor shall do all of the following:

218.164(1)(a) (a) Specify, in writing, to each of the warrantor’s dealers, the dealer’s obligations, if any, for preparation, delivery, and warranty service on the warrantor’s products.

218.164(1)(b) (b) Compensate the dealer for warranty service performed by the dealer that is covered by the warrantor’s own warranty.

218.164(1)(c) (c) Provide the dealer with the schedule of compensation to be paid and the time allowances for the performance of any work and service. The schedule of compensation shall include reasonable compensation for diagnostic work as well as warranty labor. If the schedule of compensation required by this paragraph does not include a particular repair, the warrantor shall reimburse the dealer for warranty service for the actual time expended unless the warrantor demonstrates that the actual time was not reasonable. If the warrantor demonstrates that the actual time was not reasonable, the dealer shall be paid a reasonable sum.

218.164(2) (2) Time allowances for the diagnosis and performance of warranty labor shall be reasonable for the work to be performed. The compensation of a dealer for warranty labor may not be less than the lowest retail labor rate actually charged by the dealer in the ordinary course of business for like nonwarranty labor as long as the rate is reasonable.

218.164(3) (3) The warrantor shall reimburse the dealer for any warranty part at actual wholesale cost plus a minimum 30 percent handling charge and the cost, if any, of freight to return such part to the warrantor. If a part is sent to the dealer at no cost, the dealer is entitled to payment of 30 percent of the wholesale cost of the part from the warrantor as a handling charge. The maximum handling charge for a part shall not exceed $300. If the warrantor requires the dealer to return a warranty part, accessory, or complete component, the warrantor shall reimburse the dealer the cost of freight to return the part, accessory, or component.

218.164(4) (4) Warranty audits of dealer records may be conducted by the warrantor on a reasonable basis, and dealer claims for warranty compensation may not be denied except for cause, including performance of nonwarranty repairs, material noncompliance with the warrantor’s published policies and procedures, lack of material documentation, fraud, or misrepresentation.

218.164(5) (5) A dealer shall submit warranty claims within 45 days after completing work.

218.164(6) (6) A dealer shall notify the warrantor as soon as is reasonably possible, verbally or in writing, if the dealer is unable or unwilling to perform material or repetitive warranty repairs.

218.164(7) (7) A warrantor shall disapprove warranty claims in writing within 45 days after the date of submission by the dealer in the manner and form prescribed by the warrantor. Claims not specifically disapproved in writing within 45 days shall be construed to be approved and must be paid within 60 days.

218.164(8) (8) No warrantor may do any of the following:

218.164(8)(a) (a) Fail to perform any of its warranty obligations with respect to its warranted products.

218.164(8)(b) (b) Fail to include, in written notices of factory campaigns to recreational vehicle owners and dealers, the expected date by which necessary parts and equipment, including tires and chassis or chassis parts, will be available to dealers to perform the factory campaign work. A warrantor may ship parts to the dealer to affect the factory campaign work, and, if parts provided are in excess of the dealer’s requirements, the dealer may return unused parts to the warrantor for credit after completion of the campaign.

218.164(8)(c) (c) Fail to compensate any of its dealers for authorized repairs effected by the dealer of merchandise damaged in manufacture or transit to the dealer if the carrier is designated by the warrantor, factory branch, distributor, or distributor branch.

218.164(8)(d) (d) Fail to compensate any of its dealers for authorized warranty service in accordance with the time allowances set forth in the schedule of compensation under sub. (1) (c) if performed in a timely and competent manner.

218.164(8)(e) (e) Intentionally misrepresent in any way to purchasers of recreational vehicles that warranties with respect to the manufacture, performance, or design of the vehicle are made by the dealer as warrantor or co-warrantor.

218.164(8)(f) (f) Require the dealer to make warranties to customers in any manner related to the manufacture of the recreational vehicle.

218.164(9) (9) No dealer may do any of the following:

218.164(9)(a) (a) Fail to perform predelivery inspection functions, as specified by the warrantor, in a competent and timely manner.

218.164(9)(b) (b) Fail to perform warranty service work authorized by the warrantor in a reasonably competent and timely manner on any transient customer’s vehicle of the same line-make unless the dealer determines that the customer is acting in a manner detrimental to its business.

218.164(9)(c) (c) Fail to track actual time expended to perform warranty work not governed by time allowances in the schedule of compensation under sub. (1) (c).

218.164(9)(d) (d) Claim an agency relationship with the warrantor or manufacturer.

218.164(9)(e) (e) Misrepresent the terms of any warranty.

218.164(10) (10) Notwithstanding the terms of any dealer agreement, all of the following apply:

218.164(10)(a) (a) A warrantor shall indemnify, defend, and hold harmless its dealer against any losses or damages to the extent such losses or damages are caused by the negligence or willful misconduct of the warrantor. A dealer may not be denied indemnification or a defense for failing to discover, disclose, or remedy a defect in the design or manufacturing of the recreational vehicle. A dealer shall provide to the warrantor a copy of any suit in which allegations are made under this section within 10 days after receiving the suit. This paragraph shall continue to apply even after the recreational vehicle is titled. Indemnification shall include court costs, reasonable attorney fees, and expert witness fees incurred by the dealer.

218.164(10)(b) (b) A dealer shall indemnify, defend, and hold harmless its warrantor against any losses or damages to the extent such losses or damages are caused by the negligence or willful misconduct of the dealer. The warrantor shall provide to the dealer a copy of any suit in which allegations are made under this section within 10 days after receiving the suit. This paragraph shall continue to apply even after the recreational vehicle is titled. Indemnification must include court costs, reasonable attorney fees, and expert witness fees incurred by the warrantor.

218.164 History History: 2023 a. 164; s. 35.17 correction in (3).

218.165 218.165 Inspection of recreational vehicles.

218.165(1) (1) Whenever a new recreational vehicle is damaged prior to transit to the dealer or is damaged in transit to the dealer when the carrier or means of transportation has been selected by the manufacturer or distributor, the dealer shall notify the manufacturer or distributor of the damage within the time frame specified in the dealer agreement and do any of the following:

218.165(1)(a) (a) Request from the manufacturer or distributor authorization to replace the components, parts, and accessories damaged or otherwise correct the damage.

218.165(1)(b) (b) Reject the vehicle within the time frame set forth in sub. (4).

218.165(2) (2) If a manufacturer or distributor refuses or fails to authorize repair of damage described under sub. (1) within 10 days after receipt of notification under sub. (1) or if the dealer rejects the recreational vehicle because of damage, ownership of the new recreational vehicle reverts to the manufacturer or distributor.

218.165(3) (3) A dealer shall exercise due care in custody of a damaged recreational vehicle, but the dealer shall have no other obligations, financial or otherwise, with respect to that recreational vehicle.

218.165(4) (4) The time frame for inspection and rejection by the dealer shall be part of the dealer agreement and may not be less than 2 business days after the physical delivery of the recreational vehicle.

218.165 History History: 2023 a. 164.

218.166 218.166 Coercion.

218.166(1) (1) In this section, “coerce” includes threatening to terminate, cancel, or not renew a dealer agreement without good cause or threatening to withhold product lines or delay product delivery as an inducement to amending the dealer agreement.

218.166(2) (2) A manufacturer or distributor may not coerce or attempt to coerce a dealer to do any of the following:

218.166(2)(a) (a) Purchase a product that the dealer did not order.

218.166(2)(b) (b) Enter into an agreement with the manufacturer or distributor.

218.166(2)(c) (c) Take any action that is unfair or unreasonable to the dealer.

218.166(2)(d) (d) Enter into an agreement that requires the dealer to submit its disputes to binding arbitration or otherwise waive rights or responsibilities provided under this subchapter.

218.166(2)(e) (e) Forego exercising a right authorized by a dealer agreement or any law governing the manufacturer-dealer relationship.

218.166(3) (3) A dealer bears the burden of proof regarding the prohibited acts described in sub. (2).

218.166 History History: 2023 a. 164.

218.167 218.167 Dispute resolution.

218.167(1) (1) A dealer, manufacturer, distributor, or warrantor injured by a violation of this subchapter by another dealer, manufacturer, distributor, or warrantor may bring a civil action in circuit court to recover actual damages. The court shall award attorney fees and costs to the prevailing party in an action under this section. Venue for any civil action authorized by this section shall be exclusively in the county in which the dealership is located. In an action involving more than one dealer, venue may be in any county in which a dealer who is party to the action is located.

218.167(2) (2) 

218.167(2)(a) (a) Before bringing suit under this section, the party bringing suit for an alleged violation shall serve a written demand for mediation upon the offending party. This paragraph does not apply to a proceeding for injunctive relief.

218.167(2)(b) (b) A demand for mediation under this subsection shall be served upon the offending party by certified mail at the address stated within the dealer agreement between the parties or, if the address is not contained in the agreement or the address is no longer valid, the address on the offending party’s license filed with this state. In the event of a civil action between 2 dealers, the demand shall be mailed to the address on the dealer’s license filed with this state.

218.167(2)(c) (c) A demand for mediation under this subsection shall contain a brief statement of the dispute and the relief sought by the party filing the demand.

218.167(2)(d) (d) Within 20 days after the date a demand for mediation is served under par. (b), the parties shall mutually select an independent mediator and meet with the mediator for the purpose of attempting to resolve the dispute. The meeting place shall be in this state in a location selected by the mediator. The mediator may extend the date of the meeting for good cause shown by either party or upon stipulation of both parties.

218.167(2)(e) (e) The service of a demand for mediation under this subsection stays the time for the filing of any complaint, petition, protest, or action under this subchapter until representatives of both parties have met with a mutually selected mediator for the purpose of attempting to resolve the dispute. If a complaint, petition, protest, or action is filed before that meeting, the court shall enter an order suspending the proceeding or action until the meeting has occurred and may, upon 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 court considers appropriate. A suspension order issued under this paragraph may be revoked by the court.

218.167(2)(f) (f) The parties to a mediation under this subsection shall bear their own costs for attorney fees and divide equally the cost of the mediator.

218.167(3) (3) In addition to the remedies provided in this section, and notwithstanding the existence of any additional remedy at law, a dealer or manufacturer may apply to a circuit court for the grant, upon a hearing and for cause shown, of a temporary or permanent injunction, or both, restraining any person from acting as a dealer, manufacturer, or distributor without being properly licensed under this chapter, from violating or continuing to violate any of the provisions of this subchapter, or from failing or refusing to comply with the requirements of this subchapter. An injunction under this subsection shall be issued without bond. A single act in violation of any of the provisions of this subchapter is sufficient to authorize the issuance of an injunction.

218.167 History History: 2023 a. 164.

218.17 218.17 Penalties.

218.17(2) (2) In any court action brought by the department for violations of this subchapter, the department may recover all costs of testing and investigation, in addition to costs otherwise recoverable, if it prevails in the action.

218.17(3) (3) Nothing in this subchapter prohibits an aggrieved customer from bringing a civil action against a dealer or salesperson. If judgment is rendered for the customer based on an act or omission by the dealer or salesperson, which constituted a violation of this subchapter, the plaintiff shall recover actual and proper attorney fees in addition to costs otherwise recoverable.

218.17 History History: 1973 c. 116; 1991 a. 39, 269; 1993 a. 490; 1999 a. 9.

218.17 Annotation Sub. (3) allows a customer to recover attorney fees when an incomplete warranty or no warranty has been tendered, but it does not allow recovery for a breach of warranty. Lightcap v. Steenberg Homes, Inc., 160 Wis. 2d 607, 466 N.W.2d 904 (1991).

subch. VII of ch. 218 SUBCHAPTER VII

MOTOR VEHICLE SALVAGE DEALERS

Subch. VII of ch. 218 Cross-reference Cross-reference: See also ch. Trans 136, Wis. adm. code.

218.20 218.20 Definitions. In this subchapter:

218.20(1) (1) “Department” means the department of transportation.

218.20(1g) (1g) “License period” means the period during which a license issued under s. 218.22 is effective, as established by the department under s. 218.22 (2) (b) 1.

218.20(1r) (1r) “Motor vehicle salvage dealer” means a person who purchases and resells motor vehicles for wrecking, processing, scrapping, recycling, or dismantling purposes or who carries on or conducts the business of wrecking, processing, scrapping, or dismantling motor vehicles or selling parts of motor vehicles so processed. Motor vehicle salvage dealer includes a motor vehicle scavenger and a scrap metal processor or scrap metal dealer who acquires a motor vehicle for scrap or salvage.

218.20(1t) (1t) “Motor vehicle scavenger” means a person who carries on or conducts the business of purchasing motor vehicles and reselling the vehicles to a motor vehicle salvage dealer or scrap metal processor.

218.20(1v) (1v) “Scrap metal dealer” has the meaning given in s. 134.405 (1) (h).

218.20(2) (2) “Scrap metal processor” means a motor vehicle salvage dealer who sells no motor vehicles or motor vehicle parts and whose business is limited to a fixed location at which machinery and equipment are utilized for the processing and manufacturing of iron, steel or nonferrous metallic scrap into prepared grades and whose principal product is scrap iron, scrap steel or nonferrous metal scrap for sale for remelting purposes.

218.20 History History: 1987 a. 351; 1989 a. 31; 2015 a. 55; 2017 a. 170.

218.205 218.205 Motor vehicle salvage dealers to be licensed.

218.205(1) (1) No person may carry on or conduct the business of a motor vehicle salvage dealer unless licensed to do so by the department. Any person violating this section may be required to forfeit not less than $500 nor more than $5,000 for the first offense and may be fined not less than $500 nor more than $5,000 or imprisoned for not more than 60 days or both for a second or subsequent conviction within 5 years.

218.205(2) (2) This section shall not apply to:

218.205(2)(a) (a) Motor vehicle dealers licensed under s. 218.0114 who remove, but do not sell, as such, parts of motor vehicles prior to sale of such vehicles to motor vehicle salvage dealers or scrap metal processors.

218.205(2)(b) (b) Scrap metal processors and portable scrap metal crushers who accept motor vehicles from only:

218.205(2)(b)1. 1. Licensed motor vehicle dealers;

218.205(2)(b)2. 2. Licensed motor vehicle salvage dealers; or

218.205(2)(b)3. 3. Municipalities, all of whom shall submit titles and reports to the department and retain records.

218.205(2)(c) (c) Any person who acquires a motor vehicle for salvage purposes for his or her own use and then sells the remainder to a motor vehicle salvage dealer or to another person who will further use that motor vehicle for salvage purposes for his or her own use before selling it to a motor vehicle salvage dealer.