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 HistoryHistory: 2023 a. 164; s. 35.17 correction in (3). 218.165218.165 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 HistoryHistory: 2023 a. 164. 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 HistoryHistory: 2023 a. 164. 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)(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 HistoryHistory: 2023 a. 164. 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 AnnotationSub. (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). MOTOR VEHICLE SALVAGE DEALERS
Subch. VII of ch. 218 Cross-referenceCross-reference: See also ch. Trans 136, Wis. adm. code. 218.20218.20 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(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. 218.205218.205 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)(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)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. 218.205(2)(d)(d) Collectors of special interest vehicles who purchase or sell parts cars in compliance with s. 341.266. 218.205 Cross-referenceCross-reference: See also s. Trans 136.01, Wis. adm. code. 218.21218.21 Application for salvage dealer’s license. 218.21(1)(1) Application for license shall be made to the department, at such time, in such form or in an automated format as prescribed by the department and contain such information as the department requires and shall be accompanied by the required fee. Except as provided in sub. (1m), the department may require in the application, or otherwise, information relating to the applicant’s solvency, financial standing or other pertinent matter commensurate with the safeguarding of the public interest in the locality in which the applicant proposes to engage in business, all of which may be considered by the department in determining the fitness of the applicant to engage in business as set forth in this section. 218.21(1m)(1m) The department may not require information relating to the applicant’s solvency or financial standing if the applicant provides a bond in the amount provided in sub. (4) and under conditions specified in s. 218.0114 (20) (b). 218.21(2)(2) Application for a motor vehicle salvage dealer’s license shall be made upon the form prescribed by the department and, except as provided in sub. (2f), shall contain: 218.21(2)(a)(a) The name under which the applicant is transacting business within the state. 218.21(2)(ag)(ag) If the applicant is an individual, the social security number of the individual. 218.21(2)(am)(am) If the applicant is a person who is not an individual, the person’s federal employer identification number. 218.21(2)(b)(b) The place or places where the business is to be conducted, which must be an established place of business. 218.21(2)(c)(c) If the applicant is a sole proprietorship, the personal name and address of the applicant. 218.21(2)(d)(d) If the applicant is a partnership, the name and address of each partner. 218.21(2)(dL)(dL) If the applicant is a limited liability company, the name and address of each member. 218.21(2)(e)(e) If the applicant is a corporation, the names and addresses of its principal officers. 218.21(2)(eg)(eg) A copy of correspondence on department of natural resources letterhead indicating that the applicant has permit coverage under s. 283.33, or a statement from the department of natural resources that the applicant is not required to have a permit under s. 283.33. 218.21(2)(em)(em) A copy of correspondence on department of natural resources letterhead indicating that the applicant has registered or certified its compliance with refrigerant recovery to the department of natural resources, under its rules promulgated pursuant to s. 285.59, or a statement from the department of natural resources that the applicant is not required to register or certify under rules promulgated by the department of natural resources pursuant to s. 285.59. 218.21(2)(f)(f) Such other pertinent information as may be required by the department for the purpose of determining the eligibility of the applicant to be licensed. 218.21(2f)(a)(a) If an applicant who is an individual does not have a social security number, the applicant, as a condition of applying for or applying to renew a motor vehicle salvage dealer’s license, shall submit a statement made or subscribed under oath or affirmation to the department that the applicant does not have a social security number. The form of the statement shall be prescribed by the department of children and families. 218.21(2f)(b)(b) Any motor vehicle salvage dealer’s license issued or renewed in reliance upon a false statement submitted by an applicant under par. (a) is invalid. 218.21(2m)(a)(a) The department shall deny an application for the issuance or renewal of a license if any information required under sub. (2) (ag) or (am) is not included in the application or if a document required under sub. (2) (eg) and (em) is not included with the application. 218.21(2m)(b)(b) The department of transportation may not disclose any information received under sub. (2) (ag) or (am) to any person except to the department of children and families for purposes of administering s. 49.22, the department of revenue for the sole purpose of requesting certifications under s. 73.0301, and the department of workforce development for the sole purpose of requesting certifications under s. 108.227. 218.21(3)(3) Every application shall be executed by the applicant, if an individual, or in the event the applicant is a partnership, limited liability company or corporation, by a partner, member or officer thereof. Every such application shall be accompanied by the fee required by law. 218.21(4)(a)(a) Unless the applicant furnishes a bond, or other adequate collateral as security, of not less than $25,000 under conditions provided by s. 218.0114 (20) (b), every application shall be accompanied by a current financial statement to determine the applicant’s solvency as required under sub. (1). Except as provided in par. (b), this paragraph does not apply to the application of a scrap metal processor. 218.21(4)(b)(b) Paragraph (a) does not preclude the department from requiring an applicant who is a scrap metal processor to provide information relating to the applicant’s solvency or financial standing if the applicant does not furnish a bond or other collateral as specified in par. (a) and the department has reasonable cause to believe that the applicant is financially insolvent. 218.21(5)(a)(a) Except as provided in par. (b), when a motor vehicle salvage dealer has an established place of business in more than one municipality in this state, he or she shall make separate application and submit a separate license fee remittance for each such municipality. A motor vehicle salvage dealer who fails to apply for each such separate license may be required to forfeit not more than $200. 218.21(5)(b)(b) A scrap metal processor with an established place of business in more than one municipality may make a single application listing all places of business to be licensed and pay a single fee for the licensing of the listed places of business. 218.21(7)(7) Any person who knowingly makes a false statement in an application for a motor vehicle salvage dealer license is guilty of a Class H felony.
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Chs. 178-226, Partnerships and Corporations; Transportation; Utilities; Banks; Savings Associations
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