FINANCE COMPANIES, AUTO DEAL by rua13781

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 218 .01 AUTO D EALERS -F I NAN CE COMPANIES                                                                                        3736




                                                          CHAPTER 218

  FINANCE COMPANIES, AUTO DEAL ERS , ADJUSTMENT COMPANIES AND
                      COLLECTION AGENCIES
                         SUBCHAPTER I                                   218 . 1 7   P e nalti es
   MOTOR VEHICLE DEALERS; SALESMEN ; SALES                                                         SUBCHAPTER VII
                  FINANCE COMPANI E S                                            MOTOR VEHICLE SALVAGE DEALERS'
21801     Motor v e h icle dealers; salesm e n ; sales fina n ce com-   21 82 0 . Motor vehicle salv age deal ers t o be licensed
               pa nies, lic e n ses; fe es; regulations ; co erci on;   218 21    Application fo r salva ge de aler's licens e
               subsidies,; penalti es,                                  21 8 22 When departmen t t o licen se salvage dealers
218 . 015 Repair, repl acem e nt a nd refund under ne w motor           218 23    Lice n see to m a intain records ; sale o f vehicles by
               v ehic le wa r ra nties .                                              licensee,
                        SUBCHAPT ER Ii
                                                                        2 18 24 Salvage d ealer l icen se number d isplayed on trucks
         ADJUSTM ENT SERVICE COMPANIES
                                                                                      and truck-tractors
21 8 02 Adjus tment ser vice compa nie s .
                        SU BCHAPTER III                                 21 8 . 25 Rules..
                 COLLECTION AGENCIES                                    2,1826     Tran si t i on pro visi on .
21804     Collection agencies .                                                                  SUBCHAPTE R VIII
                    + SUBCHAPTER IV                                              MOTOR VEHICLE AUCTION DEALERS
        COMMUNITY CURRENCY EXCHANGES                                    21 8 30 Motor vehicle auction deale rs to be licen sed
21805     C o mmuni ty curre nc y exchange s                            218 , 31 Applicati on fo r auctio n deale r's l icen se
                      SUBCHAPTER VI                                     218: 32 When , dep artment t o license auctio n de aler .
                MOBILE HOME D E ALERS                                   21 8 33     ' M otor vehicle auction dealer to be bonded ; con-
21 8 . 10 Defi nition s                                                                  duct of auction bu siness
  21 8 . 11 Mob ile home de al ers regula ted                                                SUBCHAPT E R IX
  218 , 12 Mobile home de al er salesmen reg ula te d                                        MOPED DEALERS . :
. 21 8 . }4  Warranty a nd d isclos u re.
  218 15     S ale or l eas e of used pri mary hous ing un i t s.       21 8.40 Defini tion s .
  21 8 . 1 6 Department al rule s                                       21841 Moped de alers regulated
  218 165 Jurisdictio n and venue o ver out-of-state                    21 8, 42 ' Examination by department.
                  m anufacturers ,                                      218,43     Penalty .




                                                                           (e) "Distributor" or "wholesaler" means a
                      SU B CHAPTE R I                                   person,. resident or nonresident who in whole or
                                                                        part, sells or distributes motor vehicles to motor
          MOTO R VE HICLE D EALER S ;                                   vehicle; dealers, or who maintains distributor
          SALESMEN ; SALES FINANCE                                      representatives .
                COMPANIES
                                                                           (f) " Distributor branch" means a branch
                                                                        office similarly maintained by a distributor or
218 .01 Motor vehicle dealers ; salesmen ;
                                                                        wholesaler for the same purposes
sales finance companies , licenses; fees ; reg -
ulations ; coercion ; subsidies ; penalties. (1)                            (g) " Distributor representative" means axep-
DEFINITIONS In this section, unlesss the context                         resentative similarly employed by a distributor ,
othe r wise r equires, the fol lowing words and                         distributor branch or wholesaler ,
terms shall have the following meanings,                                   (h) "Factory branch" means a branch office
   (a) "Agreement" means contract or franch ise                         maintained by ' a person who manufactures or
or any other terminology used to describe the                           assembles motor vehicles , for the sale of motor
contractual relationship between manufactu-                             vehicles to distributors , or for the sale of ' motor
exs, distributors, importers and dealers,                               vehicles to motor vehicle dealers or for directing
   (b) "Cash price" means the retail se l ler's                         or, supervising in whole - or part, its
price in dolla r s fox the sale of the goods, and the                   representatives,
transfer of unqualified title thereto, upon pay-                           (i) "Factory representative" means a repre-
ment of such pri ce in cash or the equivalent
                                                                        sentati ve employed by a person who manufac-
thereof'..
                                                                        tures or assembles motor vehicles or by a fac-
   (c) The term "commissioner" means the
                                                                        tory branch, for the pu rpose of making or
commissioner of banking and any duly autho-
                                                                        promoting the sale of its motor vehicles, or for
tized deputy namedd or appointed by such com-
missioner to perform any function in the admin-                         supervising or contacting its dealers or prospec-
istration or enforcement of'th is section .. ,                          tive dealers . .
   (d) " Department" means the department of                               (j) "Finance charge" has the meaning set
transportation .                                                        forth in s 421 301 (20) .
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3737                                         AUTO DEALERS-=F I NANCE COMPANIES 218 .01

   (k) " Licensor " means the body, either the             (r) " Relev ant m arket are a" means all of the
commissioner or the department or both, issu-          area within a 10-mile radius of the site of an
ing a license hereunder .                              e xi sti n g enfr a nchi sed motor vehicl e deal e rs hip
   (1) "Manufactures" means any person, resi-          or the area of sales responsibility assigned to the
dent or nonresident who manufactures or as-            existing enfranchised dealersh i p by the manu-
sembles motor vehicles or' who manufactures or         facturer,factoxy branch or distributor , which-
installs on previously assembled truck chassis,        ever is greater .
special bodies or equipment which when in-                 (s) "Retail buyer" means a person, firm or
stalled form an integral part of ' the motor vehi-     corporation, other than a motor vehicle manu-
cle and which constitutes a major manufactur-          facturer, distributor or dealer, buying or agree-
ing alteration and which completed unit is             ing to buy one or more motor vehicles from a
owned by such manufacturer                             moto r vehicle dealer .
   (m) "Motor vehicle" means any motor                     (t) "R e tail instalment contract" or "instal-
driven or trailer type vehicle required to be          ment contract" means and includes every con-
registered - under ch . 341 except mopeds, semi-       tract to sell one or, mo re mo to r vehicl es a t r et ail,
trailers or trailers designed for use in combina-      in which the price thereof is payable in one or
tion with truck or truck tractor , and except that     more instalments over a period of time and in
mobile home dealers and, salespersons and              which the seller has either retained titlee to the
moped dealers and salespersons are not re-             goods or has taken or- retained a security inter-
quired to be l icensed under s 218 01 (2) (d) 1        est in the goods under a form of contract
and 5 .                                                designated either as a conditional sale , chattel
   (n) "Motor vehi cle dealer" means any per-
              r                                        mortgage or otherwise.
son , firm or corporation, not excluded by par . .         (u) "Retail seller" means a person , firm or
(o) who :                                              corporation selling or agreeing to sell one or
   1 . For commission, money or other thing of         more motor - vehicles under a retail instalment
value , sells, exchanges, buys, rents with theh        contract to a buyer for, the Tatter's personal use
option of pu r chase , offers or attempts to negoti-   or consumption thereof'.
ate a sale or exchange of an interest in motor             (v) "Sales finance company " means and i n-
vehicles ; or,                                                     y
                                                       cludes any person, firm or corporation engag-
   2 Is engaged wholly or in part in the business       ing in the business, in whole or in part, of
of selling motor vehicles, including                    acquiring by purchase or by loan on the security
motorcycles whether or not such motor vehi-             thereof, ; or oth e rwi se, retail in stalment c o n -
cles are owned by such person, fi rm or                 tiacts from retail sellers in this state, including
corporation :                                          any motor vehicle dealer who sells any motor
                                                                                         o
   (o) The term "motor vehicle dealer" does not        vehicle on an instalment contract or acquires
include :                                              any retail instalment contracts in his retail sales
   1 . Receivers, trustees, administrators, execu-     o#' motor vehicles .
tors, guardians or other persons appointed by              (w) "Secretary" means the secretary of
or acting `under the judgment ox order of any          transportation . .
court ; or                                                 (18) AUIHORIIY OF DEPARTMENT AND COM-
   2 : Public officers while performing their- offi-   MISSIONER, The department shall issue the li-
cial duties ; or                                       censes provided for in sub . . . (2) (d) 1 to 6 and
   3 . Employes of persons, corporations or as-        have supervision over the licensees thereunder
sociations enumerated in subds , I and 2 , when        in respect to all the provisions of this section,
engaged in the specific performance of their           except only as to such matters as rel ate to the
duties as such employer .                              sale of motor- vehicles on retail instalment con-
   4 . Sales finance companies or other loan           tracts and the financing and servicing of such
agencies who sell or offer for sale motor vehicles     contracts, over, which ratter th e commi ssi o ner
repossessed or- foreclosed by them under terms         shall have jurisdiction and control, and the
of an instalment contract, or, motor vehicles          commi ss ioner shall issue the licenses t o sa les
taken' in trade on such repossessions .                finance companies . Either licensor hereunder
   (p) "Motor vehicle salesman" means sales            shall, upon request, furnish the other , licensor
representative , sales manager, general manager        with any information it may have in re spe ct to
or other person who is employed by a motor-            any licensee or applicant for license or any
vehicle ' dealer- for the purpose of selli ng or       transaction in which such licensee or applicant
approving retail sales of motor vehicles . Any         may be a party or be interested . . No license shall
motor vehicle salesman licensed heieunder shall
              e                                        be issued under' sub. (2) (d) 1 and 8 until both
be licensed to sell only for one dealer at a time ..   licensors have approved the application .. The
   (q) " Person" means a person, firm, corpora-        suspension or revocation of either of such li-
tion or association .                                  censes shall automatically likewise suspend or
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21 8. 01 AUTO DEALERS-F I NANCE COMPAN I ES                                                              3738

revoke the other license ; and such suspension or          less than $25 , 000 under conditions specified in
revocation shall be certified by the licensor             par . (h) ..
ordering it to the other licensor .                            (be) Except as provided in this subsection
   (l b) LICENSES FOR DEALERS, DISTRIBUTORS,              every dealer and distributor of ' new motor vehi-
MANUFACTURERS OR TRANSPORTERS OF SEMI-                    cles, otherthan mopeds or motor bicycles , shall ,
 TRAILERS AND TRAILERS, Subject to ch 180                 at the time of application for a license , file with
where applicable , any dealer, distributor , man-         the department a certified copy of the appli-
ufacturer or transporter of' semitrailers or trail-       cant's written agreement and a certificate of
ers designed for use in combination with a truck          appointment as dealer or distributor , respec-
or truck tractor is deemed licensed under this            tively The certificate of appointment shall be
section where for purposes ` of' chs . 341 and 342        signed by an authorized agent of the manufac-
license under this section is required , This             turer of domestic vehicles on direct
subsection is enacted to remove an undue bur-             manufactures-dealer agreements ; or, where the
den on int e rstate comme rce : fr o m a cl ass of        manufacturer is wholesaling through an ap-
commercial transactions in which the business             pointed distributorship, by an authorized agent
character of the parties does not require the             of the distributor on indirect distributor-dealer
protection provided by this section and to pro-           agreements . . The certificate shall be signed by
mote the expansion of credit for truck operators          an authorized agent of the importer on direct
who require banking and , financing facilities
            e                                             importer-dealer agreements of 'foreign- made
throughout the United States .                            vehicles; or by an authorized agent of the dis-
   (2) LICENSES, HOW ' GRANTED ; AGREEMENTS,              tributor on indirect dist r ibutor-dealer agree-
FILING . (a) No motor vehicle dealer, motor               ments The distributor's certificate of appoint-
vehicle salesman or sales finance company shall           ment shall be signed by an authorized agent of
engage in business as such in this state without a        the manufacturer ; or by an agent of the manu-
license therefor as provided in this section . . If       facturer or importer of foreign manufactured
any motor vehicle dealer acts as a moto r vehicle         vehicles.
salesman he shall secure a motor vehicle sales-                (bd) 1 A dealer or distr i butor need not file a
man's license in addition to a license :for motor         written agreement if the manufacturer ' on direct
vehicle dealer : Every motor vehicle dealer shall         dealerships or distributor on indirect dealer-
be responsible for the licensing of` every motor          ships or importer on direct dealerships utilizes
vehicle salesman in his employ .                          the identical basic agreement for all its dealers
    (am) No manufacturer of motor vehicles , or           or distributors in Wisconsin and certifies in the
factory branch, or' distributor' OT' distributor'         certificate of appointment that such blanket
br a nch sh all e n gage in bu sine ss as such in thi s   agreement is on file and such written agreement
state without a license therefor as provided in           with such dealer or distributor, respectively , is
this section :                                            identical with the filed blanket agreement, and
   (an) No factory representative or distributor          has filed with the department one such agree-
representative shall engage in business as such           ment together with a list of authorized dealers
in this state without a license therefor as pro-          or distributors . Such manufacturer , distributor
vided in thi s sec tion                                   or ' importer shall notify the department imme-
   (b) Application f 'or, license shall be made to        diately of the appointment of any additional
the licensor, at such time, in such form and              dea ler s o r di stributo rs, of any revisions of or
contain such information as the licensor shall            additions to the basic agreement on file , or of
require and shall be accompanied by the re-   e           any individual dealer or distributor supple-
                                                               y
quired fee. Except as provided in par . (bb), the         ments to such agreement . Such manufacturer,
licensor may require in such application, or              distributor or importer shall notify the dealer or
otherwise , information relating to the appli-            distributor and forward a copy of such notice to
cant's solvency , his financial standing or other'        the department of the discontinuation or can-
                                                                             t
pertinent matter commensurate with the safe-              cellation of the agreement of any of its dealers
guarding of the public interest in the locality in        or distributors at least 60 days before the effec-
which said applicant proposes to engage in                t ve dat e ther e of ' together with the specific
business, all of ' which may be considered by said        grounds for discontinuation or cancellation of
                                                                    s
licensor in determining the fitness of' said appli-       the agreement, if ' discontinued or canceled ,.
cant to engage in business as set forth in this
                e                                         Agreements and certificates of appointment are
section .                                                 deemed to be continuing unless the manufac-
   (bb) The licensor may not require informa-             tuxer, distributor or importer has notified the
tion relating to the solvency or financial stand-
             g                                            department of ' the discontinuation or cancella-
ing of an applicant for a motor vehicle dealer                                              y
                                                          tion of the agreement of any of its dealers or
license if the applicant provides a bond of not           distributors , and annual renewall of certifica-
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3739                                          AUTO DEALERS-FINANCE COMPANIES 21 8. 01

tions filed as provided in this subsection is not        tation has rendered a decision permitting the
necessary .                                              issuance of the license .
   2 . Any dealer or distributor discontinued or            (d) The license fee fox each calendar year, or
canceled may within such 60-day notice period,           part thereof', shall be:
file with the department and office of the com-             1 . For motor vehicle deale is, $20 for each
missioner of transportation and serve upon the           offi ce or branch thereof, plus $1 for a supple-
respondent a complaint for a determination of            mental license for each used motor vehicle lot
unfair discontinuation or cancellation , under'          within the same municipality, but not immedi-
sub ; (3) (a) 17 Allowing opportunity for an             ately adjacent to the office or to a branch .
answer, the office of the commissioner of' trans-           2 . For motor vehicle manufacturers, $20 ; and
portation shall thereafter schedule a hearing on         for each factory branch in this state, $20 .
and decide the matter Agreements and certifi-               3 .. For distributors or' wholesalers, the same
cates of appointment shall continue in effect
                                        e                as for dealers .
until final determination of ' the issues raised in         4 . Any person licensed under subd . 2 or, 3
such complaint. If the complainant prevails he           next preceding, may also operate as a motor
or she shall have a cause . of action against the        vehicle dealer, without any additional fee . .
defendant for reasonable expenses and attor-                5 For motor vehicle salesmen, $4 .
ney's fees incurred by him or her in such matter..          6 . . For factor y representative , or distr ibutor
    3 . No manufacturers', distributors' or im-          branch representative, $4
                                                            7 . . For sales finance companies on the basis of
 porters' vehicles shall be sold in this state unlesss
                                                         the gross volume of purchases of retail : sales
 either the manufacturer on direct dealerships of
                                                         contracts of motor vehicles sold in this state for
 domestic vehicles, the importer of foreign man-
                                                         the 12 months immediately preceding October
 ufactured vehicles an direct dealerships or the
 distributor on indirect dealerships of either- do-      31 of the year inwhich the application or license
                                                         is made, as follows : On a gross volume of
 mestic ox foreign vehicless are licensed under s .
                                                         $25,000 or less, $25 ; on a gross volume of over
 218 . 01 : The obtaining of a license under s .
                                                         $25,000 and not over $100 ,000 , $50; on each
                                        h
 218 .. 01 shall conclusively establish that such
         1
                                                         $100 ,000 over $100,000 and up to $500 , 000, an
 manufacturer, distributor-orimporter is doing
 business in this state and shall subject the li-        additional . $15 ; and on each $100,000 over '
                                                         $500,000, an additional $10 . No extra charge
 censee to all provisions of the Wisconsin stat-
                                                         sha ll be made for branch licenses fo r sales
 utes regulating manufacturers, importers and
                                                         finance companies.. Gross volume shall be
 distributors ,
                                                         based ., on the unpaid balance of the retail
    (be) Any manufacturer on direct dealerships          cont r acts
 or distributor on indirect dealersh ips or- im-            8 . For motor vehicle dealers, which operate
 porter on direct dealerships who has filed with         as a sales finance company, and carr y or retain
 the department an agreement used by all its             time sales contracts for more than 30 days , the
 dealers or distributors in this state together w ith    same as sales finance companies, except for the
 a list of all such dealers or distributors who fails
                                                         first $10,000 of gross volume, $10 ; and on each
 to notify the department of any revisions ,                                              t
                                                         $1,000 of gross volume, or part thereof, over
 changes or- additions when and as required by           $10,000 and up to $25,000, $1 ..
 par (bd) may be fined not more than $200 or                (e) The licenses .s of dealers, manufacturers ,
 imprisoned not more than 6 months or both: .
                                                         factory. ; branches, distributors, distributor
    (c) 1 , Except as provided in subd . 2, all          branches and sales finance companies shall
 licenses shall be granted or refused within 60          specify the location of the office or branch and
 days after application therefor , and shall expire,     must be conspicuously displayed there . In case
 unless sooner revoked or suspended, on Decem-           such location be changed, the licensor shall
 ber 31 of the calendar- year :for which they are        indorse the change of location on the license
 granted                                                 without charge if it be within the samee munici-
    2 . a . In cases where a complaint of unfair         palit y . A change of location :to another munici-
                            r
 cancellation of a dealer agreement is in the            pality, shall require a new , license , except for
                                                                       l
 process of ' being heard., no replacement applica-      sales finance companies
 tion fox the agreement may be considered until             (f) Every salesman, factory representative or,
                                                                      y
 a decision is rendered by the office of the             distributor representative shall carry his license
:commissioner of transportation :                        when engaged in his business, and display the
    b . In cases where a complaint has been filed        same upon request.. The license shall name his
 under sub , (3) (f) protesting the proposed estab-      employer, and in case . of leaving an employer,
lishment or relocation of a dealership in a              the salesman shall immediately surrender ' his
 relevant market area , no license may be issued
           t                                             license to his employer who shall mail the
until the office of the commissioner of ' transpor-      license to the licensor . If du r ing the license year
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 21 8. 0 1 AUTO DEALERS-FINANCE COMPANIES                                                                     3740

such individual again is employed or acts as a                (k) After the receipt of an application in due
salesman he shall make application for reissue             form, properly verified and certified , and upon
of a salesman's license . There shall be no fee in         the payment of the $5 examination fee , it is the
connection with such subsequent applications .             duty of'the secretary, or the deputy secretary or
    (g) Every sales finance company shall be               any salaried employe of the department desig-
required to procure a salesman's license for               nate d by the said secr e tary , within a reasona ble
itself ' or its employer in order to sell motor                                    e
                                                           time and in a place reasonably accessible to the
vehicles : repossessed by it.                              applicant for a license, to subject each first-time
                                                           applicant for license and if the secretary deems
     (h) Provided the licensor has reasonable
                                                           necessary , any applicant for renewal of license ,
 cause to doubt the financial responsibility or' the
                                                           to a personal written examination as to compe-
                                        t
 compliance by the applicant or licensee with
                                                           tency to act as a motor vehicle salesman . . When
 this section the licensor may require the appli-
                                                           it is shown from such application and examina-
 cant or licensee to furnish and maintain a bond
                                                           tion that the applicant : 1 . intends in good faith
 in t he form, amount .t and with the sureties it
                                                           to act as a motor vehicl e sal esm an; 2 . i s of goo d
 approves , but not less than $5 ,000 , not more
                                                           reputation; 3 . has had experience or training in,
 than $15,000, conditioned upon the applicant
                                                           of is otherwise qualified for selling motor vehi-
 or licensee complying with the statutes applica-
                                                           cles ; 4 : is a res ident of' this state (unless applica-
 ble to the licensee and as indemnity for any loss
                                                           tion is for a nonresident motor vehicle sales-
 sustained by any person by reason of any acts of
                                                           man's license) ; 5 . is reasonably familiar with the
 the licensee constituting grounds for suspension
                                                          motor vehicle sales laws or contracts the appli-
 or revocation of the license under ' this section .       cant is proposing to solicit , negotiate or effect;
 The bonds shall be executed in the name of ' this         and 6 .. is worthy of a license, the said secretary
                                               d
 state - for the benefit of any aggrieved parties;        shall issue to the applicant a license to transact
 provided that the aggregate liability of the              business in this state . as a resident or nonresi-
 surety to all such parties shall, in no event ,           dent motor vehicle salesman .,
 exceed the amount of the bond . The above
                                                             ` (2a) CHANGES ' IN PLACES OF BUSINESS TO BE
 bonding requirements shall not apply to manu-
                                                           REPORTED . (a) Before changing the location of a
 facturers, factory branches, and their- agents,
                                                           place of` business or opening a new place of
    (i) Application for dealers' licenses shall be        business in a municipality in which authorized
 submitted to the department in duplicate and,             to do business, a licensed dealer -, distributor, or
 except for- information relating to the appli-           manufacturer shall apply to the department for
 cant's solvency or financial standing as pro-             an amended license . The department shall issue
 vided in par . (bb), shall contain such informa-         such license without charge .
 tion as the licensors require . Application for              (b) Whenever a licensed dealer, distributor',
 sales finance company licenses shall conta i n
                                                          manufacture r or transporter opens a new place
 such information as the commissioner requites . .
                                                          of` business, the licensee shall promptly report
 No motor vehicle dealer or sales finance com-
                                                          such fact, including the address thereof, to the
pany, unless so licensed ; shall be permitted to
                                                          department
register or receive or use registration plates
under ss . .341 . . 47 to 341 .. 57 . .' The department       (c) Whenever a licensed dealer, distributor or
shall transmit the duplicate copy of each appli-          manufacturer, discontinues or disposes of his or
cation for a dealer s license to the commissioner         her business, such person shall promptly report
with $1 for each application fee to cover the fee         such fact to the department and return the
r equired under par : (d) 8 .. and the commissioner       license ' and registration plates issued . . When-
shall issue a sales finance company license to the        ever a licensed dealer, distributor ox manufac-
dealer if no prior sales finance company license          turer discontinue s business due to licens e sus-
has been suspended or revoked, and if ' the               pension or revocation, such person shall
applicant meets the requ irements of this section         surrender the licenses and registration plates to
r elating to sales finance companies . .                  the department for such suspension or revoca-
                                                          tion period .
   (j) Unless a dealer furnishes a bond of' not less
than $25,000 under conditions provided by                     (d) Any dealer, distributor, manufacturer or
pans (bb) and (h), every motor; vehicle dealer            transporter who fails to comply with the re-
                                                          quirements of` this subsection may be fined not
licensed ' in accordance with the provisions of
this section shall make reports to the licensor at        more than $200 or imprisoned not more than 6
such intervals and showing such information as            months o f both :.
the licensor may require, The licensor may not               (3)   LICENSES, HOW DENIED, SUSPENDED OR

require information relating to the solvency or           REvoKED . (a) A license may be denied, sus-
financial standing of a dealer , if the dealer keeps      pended or revoked on the following grounds :
the bond in force,'                                          I Proof of unfitness..
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 374 1                                         AU TO DEALERS-FINANCE COMPANIES 218 .01

    2 Material misstatement in application for           or any representative whatsoever of such motor
 license                                                 vehicle manufacturer or factory branch, who
    3 . Filing a materially false or fraudulent          has unfairly, without due regard to the equities
 income tax return as certified by the department        of said dealer and without just provocation,
 of revenue ,                                            canceled or failed to renew the franchise of any
    4 . Wilful failure to comply with any provi-         motor vehicle dealer ; or being a manufacturer,
    n
 sion of this section or any rule or regulation          factory branch or importer , who unfairly, with-
 promulgated by the licensor under this section.,            t
                                                         out due regard to the equities of a distributor
    5 Wilfully defrauding any retail buyer to the           d
                                                         and without , just provocation canceled or failed
 buyer's damage :                                        to renew the franchise of any distributor , All
    6 : Wilful fa ilure to perform any written           existing dealers' fr anchises shall continue in full
 agreement with any retail buyer .                                             n
                                                         force and operation under a newly appointed
    7 Failure or refusal to furnish and keep in                                            n
                                                         distributor on the termination of an existing
 force any bond required                                 distributor unless a mutual agreement of can-
    8 . Having made a fraudulent sale , transac-         cellation is filed with the department between
 tion or repossession                                    the newly appointed distributor and such
    9 Fraudulent misrepresentation , circumven-          dealer ,
 tion or concealment through whatsoever sub-                 18. . Having accepted an order of purchase of
 terfuge of device of any of the material particu-       a contract from a buyer if . such arrangement
 lars or the nature thereof required hereunder to
                  e                                      results in the practice of bushing .. For the
 be stated or furnished to the retail buyer              purpose of this section, "bushing" means the
    10 Employment of' f'raudulentdevices, meth-          practice of increasing the selling price of a
 ods or practices in connection with compliance                                                y
                                                         motor vehicle above that originally quoted the
 with the statutes with respect to the retaking of       purchaser as evidenced by a purchase order or
 goods under retail instalment contracts and the        contract which has been signed by both the
 redemption and resale of such goods :                  purchaser and dealer licensee .
   11 . Having indulged in any unconscionable               19 . Having advertised, printed , displayed ,
practice relating to said business                      published, distributed , broadcast or televised or
   12 . Having charged a finance charge imexcess        caused or permitted to be advertised, printed ,
of the rate permitted by s . 422 . 201 (3               displayed, published;, distributed, broadcast or
      , Having sold a retail instalment)13 contract     televised in any manner whatsoever , any state-
to a sales finance company not licensed                 ment or representation with regard to the sale
hereunder                                               or financing of motor vehicles which is false,
   14 Having violated any law relating to t h e         deceptive or misleading .
sale, distribution or financing of motor vehicles ,         20 . Having set up, promoted or aided in the
   15 . Being a manufacturer of motor vehicles,         promotion of a plan by which motor' vehicles
factory branch, distributor , field representative,     are sold to a person for- a consideration and
officer, agent or any representative whatsoever         upon the further consideration that the pur-
of such motor vehicle manufacturer or factory           chaser agrees to secure one or more persons to
branch , ., who has induced of coerced or at-           pa r ticipate in the plan by respectively making a
tempted to induce or coerce any motor vehicle           similar pu rchase and in turn agreeing to secure
dealer to accept deli very of any motor vehicle or      one or more persons likewise to join in said
vehicles , parts or accessories therefor, or any                     h
                                                        plan , each purchaser being given the right to
other', commodities which shall not have been           secure money, credits, goods or someth ing: of
ordered by said dealer .                                value, depending upon the number of persons
    16 :- Being a manufactu r er of motor vehicles,     joining in the plan ,
 factory branch, distributor , field representative ,        21 ; Being a dealer who keeps open his place
 officer, agent or , any rep r esentative whatsoever    of ' business on Sunday for the purpose of' buying
 of such motor, vehicle manufacturer or factory         or selling motor vehicles ; ' but nothing in this
 branch, who has attempted to induce or coerce,         subdivision shall apply to any person who con-
 or has induced of coerced , any motor vehicle          scientiously believes that the 7th , day of the
dealer to enter into any agteeinent with such h         week, " from- sunset F r iday to sunset Saturday,
manufacturer; factory branch or representative          should be observed as the Sabbath and who
thereof; or to do any other act unfair to said
                         y                              actually refrains from conducting or engaging
dealer , by threatening to cancel : any franchise       in the business of buying, selling ors offering for
existing between such manufacturer , factory            sale motor vehicles, or performing other secular
branch ' or rep resentative _ thereof and said          business on that day..
dealer-,                                                   22 Being a manufacturer, factory branch or
    17 ; Being a manufacturer, factory branch,          distributor who for- the protection of ' the buying
distributor , field representative, officer-, agent     public fails to specify the delivery and prepara-
                    Electronically scanned images of the published statutes.

 2 1 8 .01 AUTO DEALERS-FINANCE COMPANIES                                                                3742

 tion obliga tion s o f its dea lers prior to delivery       29 . Being an inactive business, as evidenced
 of new motor vehicles to retail buyers . A copy          by 3 or less motor vehicle purchases and sales
                       d
 o f ; the delive ry and pr epara tion obligati o ns of   during the prior- year licensing period
 its. dealers shall be filed with the department by          30 Failure to obtain proper business zoning
                         r
 every licensed motor vehicle manufacturer, fac-          or failure to obtain and maintain any required
 tory branch or distributor and shall constitute                                          e
                                                          additional state or local license or permit ..
 the dealer' s only responsibilit y for p roduct lia-         31 . Having violated an order issued under
 bility as between the dealer and the manufac-             par . (h) .
 ture, factory branch or distributor Any                      32 . Being a manufacturer, factory branch or
mechanical, body o r parts defec ts arisi n g fr om        distributor who enters into a franchise agree-
any express or implied warranties of ' the manu-          ment establishing or relocating a motor vehicle
facturer- or importer shall constitute the manu-          dealership in a relevant market area without
facturer' s or importer's product or warranty             first complying with the procedure in par . (f) 1 .
liability,. The manufacturer, factory branch or              (b) The licensor may without notice deny the
distributor shall reasonably compensate any                                   a
                                                          application f 'or' .a license within 60 days after
authorized dealer' who performs work to rectif y          receipt thereof' by written notice to the appli-
the manufacturer's or importer's product or               cant, stating the grounds for such denial ,.
warranty defects or delivery and preparation              Within 30 days after such notice , theapplicant
obligation s A manufacturer , factory branch or           may petition the office of the commissioner of
distributor shall pay the dealer who performs             transportation to conduct a hearing to review
work to rectify the manufacturer's or importer's          the denial, and a hearing shall be scheduled with
product or warranty defects at a labor r ate              reasonable promptness .
equal to the effective labor rate charged all                (bf) 1 . The department shall not license as a
                                                          dealer an applicant for the sale of motor vehi-
customers .
                                                          cles at retail: unless such applicant owns or
      2.3' Being a manufacturer, factory branch or                                   y
                                                          leases a vehicle display lot and a permanent
  distributo r who unreasonably withholds its ap- s       building wherein there are facilities to display
                        e
  pioval of 'a change of ownership or executive           automobiles and motorcycles and facilities to
  m anagement of a dealership .                           repair functional and nonfunctional parts of
     24. Being a manufacturer , factory branch or                                       e
                                                          motor , vehicles and where replacement parts ,
  distributor who unreasonably closes a dealer            repair tools and equipment to service motor
  point.                                                  vehicles axe kept, and at which place of business
     25 . Having violated chs 421 to 427 .                shall be kept and maintained the books, records
     26. Being a manufacturer , factory branch,           and files necessary to conduct the business .. A
  distributor, field representative, off'icer ', agent    residence , tent or, temporary stand is not a
  or ' an y repre s entative of such manufacturer,        sufficiently permanent place of business within
  factory branch or distributor who, notwith-             the meaning of this paragraph . .
  standing the terms of any agreement, refuses to            2 . An approved service contract with an
  honor the succession to the ownership or opera-         established repair shop having the repair pacts
  tion of 'a dealership under, an existing franchise      and repair facilities specified in subd . 1 shall
  agreement ' by ' a designated family member of a        serve in lieu of' the a pplicant's owning or leasing
                                                          his own repair facilities if such service connec-
  deceased or incapacitated dealer ; except in the
                                                          tion is within a reasonable distance from the
  manner prescribed by sub.. (3c), or who unrea-
                                                          applicant's place of business and if ' such service
  sonably withholds its approval of a change of
                                                          connection guarantees in writing the making of
  ownership or executive management of the
                                                          the repairs or replacements ordered by the
  dealership after the dealer's death or incapacity ..
                                                          dealer
     26m, Being a manufacturer factory branch                 3 . This paragraph does not apply to persons
  or distributor who unreasonably refuses to al-          who deal only in mopeds or motor bicycles ,.
  low a dealership to share its facilities with              (c) No license may be suspended or revoked
  another or who unreasonably refuses to allow a          except after- a hearing thereon .. The licensor
  dealership to add another franchise at the same         shall give the licensee at least 5 days' notice of
                                                                                 e
  location as its existing fr anchise or fr anchises .    the time and place of such hearing . The order
     27 . The selling of new motor vehicles for            suspending or revoking such license shall not be
- which the dealer is not franchised .                    effective until after 10 days' written notice
     28 ' Wilful failure to provide and maintain          thereof' to the licensee, after such hearing has
  facilities and business records as requi red by         been had ; except that the licensor , when in its
  this section or by any rule promulgated by the           opinion the best interest of the public oc the
  licensor pertaining to facility and business            trade demands it, may suspend a license upon
  reco rds .                                              not less than 24 hours' notice of hear ing and
                   Electronically scanned images of the published statutes.
 3743 '                                         AUTO DEA LERS-FI NAN CE CO M PAN IES 218 .01

 with not less than 24 hours' notice of the                or relocation of the dealership . In the event of
 suspension of the license . Matters involving             multiple complaints, hearings shall be consoli-
 suspensions or revocations brought before the             dated to expedite the di sposition o f the issue.
 department shall be heard and decided upon by                 2 In determining whether good cause exists
 the office of the commissioner of                         for not permitting . the proposed establishment
 transportation                                            or relocation of 'a dealership, the office of the
    (d) The licensor may inspect the pertinent             commissioner of transportation shall take into
 boo k s,, recor ds, l etters and co ntr acts o f a li -   consideration the existing circumstances , in-
 censee. The actual cost of each such examina-             cluding, but not limited to :
 tion shall be paid: by such licensee so examined              a . The amount of business transacted by
 within 30 days after demand ., therefor by the            existing enfranchised dealers of ' the line make of
 licensor, and the licensor may maintain an                motor'- vehicle when compared with the amount
 action for the recover y of such costs in any             of' business available to themm
 court of ' compeYent ,jurisdiction                            b The permanency of the investment neces-
    (e) If' a licensee is a firm or corporation , it       sarily made and the obligations incurred by
shall be sufficient cause for the denial, suspen-          existing enfranchised dealers in the perform-
sion or revocation ofia license that any officer,          ance of their f r anchise agreements .,
                                                                         r
director or trustee of ' the firm or corporation , or          c . The effect on the retail motor vehicle
any member in case of ' a partnership, has been     n      business in the relevant market area . .
guilty of any act or omission which would be
                                 n                              d . Whether it is injurious to the public wel-
cause for refusing, suspending or revoking a               far;e for the proposed dealership to be estab-
license to such party as an individual .. Each             li sh e d or relocated
licensee, shall be responsible for the acts of any          e Whether the establishment or relocation of
or all of his salesmen while acting as his agent , if    the proposed dealership would increase compe-
s uch li cense e appro ved of or had know l e d ge of    tition and therefore be in the public interest .
said acts of other similar acts and after such              f'. Whether the existing enfr anchised dealers
approval or knowledge retained the benefit ,             of the line make of motor vehicle are providing
proceeds, profits or advantages accruing from            adequate consumer care for the motor' vehicles
said acts or otherwise ratified said acts .              of that line make , including the adequacy of   y
    (f) 1 : A manufacturer, facto r y branch or          motor vehicle service facilities, equipment, sup-
 distributor who seeks to enter into a franchise         ply of parts and qualified personnell
 agreement establishing or relocating a motor               g . Whether ' the existing enf r anchised dealers
 vehicle dealership within the relevant market           of the line make of motor vehicle are receiving
 area of an existing enf r anchised dealer of the        vehicles and parts in quantities promised by the
 line make of motor vehicle shall first notify in        manufacturer, factory branch or distributor,
 writing the department and each such existing           and on which promised quantities existing en-
 enfranchised dealer of its intention to establish       franchised dealers based their investment and
 or relocate a dealership . Within 30 days of            scope of operations .
 recei ving the notice o r within 30 days a ft e r th e     h . The effect the denial of'such establishment
 end of any appeal procedure provided by the             or relocation would have on the license .e appli-
 manufacturer, factory branch or: distributor,          cant or dealer who is seeking to establish or
 whichever is later , any existing enf'ranchised ' relocate- a deale rs hip
 dealer of the same line - make: to whom the               3 . The decision of the office of the commis-
 manufacturer, factory branch or distributor is
                ,                                       sioner of transportation shall be in writing and
 required to give ' notice under this subdivision
                                     s                  shall contain findings of fact and a determina-
 may file with the department and the office of tion of whether there is good- cause for not
 the commissioner of transportation a complaint         permitting the pr opo sed es tabli shment o r relo-
 protesting the proposed establishment or relo-         cation of the d e al ership . The office o f the
cation of the dealership within the relevant            commissioner of transportation shall deliver
market area of the existing enfranchised dealer-,       copies of the decision to the parties personally
If ''a complaint is filed , the department shall        oc by registered mail . The decision is final upon
inform the manufacturer, factory branch or              its delivery or, mailing and no reconsideration or '
distributor that a timely complaint has :been        n  rehearing by the office of the commissioner of
filed , that a hearing is required, and that the        transportation is permitted ..
proposed f r anchise agreement may not be en-                 4. For purposes of this paragraph :
tered into until the off ice of the commissioner of           a The reopening of 'a dealership, which has
transportation has held a hearing, nor there-              been closed for- less than 2 years , at the original
after, if ' the office of' the commissioner of trans-      location is not the establishment or relocation
portation determines that there is good cause              of a motor vehicle dealership . . The reopening of'
for not permitting the proposed establishment              a dealership at a location other than the original
                     Electronically scanned images of the published statutes.
 2 18 . 0 1 ; AUTO DEALERS-FINANCE COMPAN I ES                                                        3744

 location is the establishment or relocation of 'a      stay is ordered by the judge of the court to
 motor vehicle dealership if the new location is        which the appeal is taken .
 within 6 miles, by the closest highway route, of          (3c) FAMILY M E MB E R 'S R IGHT TO SUCCEED
 another enfranchised dealer of the samee line          DECEASE D OR INCAPACITATED DEALE R UNDER EX-
 make and is closer to such dealer than the             ISTING FRANCHISE AGREEMENT (a) The term
 reopening dealer's closed dealership .p                "designated family member", as used in this
    b. The . relocation of an enfranchised dealer-      subsection and in sub . (3) (a) 26, means the
 ship to a -location within the existing area of        spouse, child, grandchild, parent, brother or
 sales responsibility assigned to that en-              sister of'adealer who, in the case of 'a deceased
 franchised dealership by the manufacturer, fac-        dealer, is entitled to inherit the dealer's owner-
 tory branch or distributor is not the relocation       ship interest in the dealership under the terms of
 of a dealership ; unless the relocation site is        the dealer's will or under the laws of intestate
 within 6 miles, by the closest highway route, of       succession of this state, or who, in the case of an
 the location of another enfranchised dealer of         incapacitated dealer, has been appointed by a
 the same line make and is closer to such dealer        court as the legal representative of the dealer's
 than the relocating dealer's existing location         property The term "designated family mem-
   (g) Any person in interest aggrieved by a            bet" shall also mean and include the duly ap-
decision of the office of the commissioner of           pointed and qualified personal representative
transportation mayy have a review thereof' as           and the testamentary trustee of a deceased
provided in ch, 227 or aggrieved by an order of         dealer .
the commissioner may have a review thereof as              (b) Any designated family member of a de-
provided ins 220 . .0 .37 .                             ceased or incapacitated dealer- shall have the
   (h) In addition to the licensor's authority to       right to succeed such dealer in the ownership or
deny, suspend or revoke a license under this            operation of the dealership under the existing
section, the commissioner, after public hearing,        franchise agreement provided the designated
may issue a special order enjoining any licensee        family member gives the manufacturer, factory
from engaging in any act or practice which is           branch or distributor written notice of his or her
determined by the commissioner to be in viola-          intention to do so within 120 dayss of the dealer's
tion ;of any provision of par . (a), and the office     death or incapacity and unless there exists good
of the commissioner of transportation may be            cause for refusal to honor such succession on
petitioned to issue such a special order after          the part of the manufacturer, factory branch or
notice . and hearing thereon                            distributor, The manufacturer, factory branch
   (3a) WHEN DEPARTMENT TO REVOKE LICEN SE              or distributor may request, and the designated
OF DEALE R , DISTRIBUTOR, MANUFACTURER, OR              family member shall provide, such personal and
TRANSPORTER . (a) If a dealer, distributor or           financial data as is reasonably necessary to
manufacturer is convicted under s . .341 55 (1) a       determine` whether the succession should be
second ox subsequent time within the same              honored . .
registration year, the departmentt shall revoke            (c) If' a manufacturer-, factory branch or
the license of such dealer, distributor or manu-       distributor believess it has good cause for refus-
faeturer for a period not to exceed one year           ing to honor the successionn to the ownership
For .the purposes of this paragraph, the convic-       and operation of a dealership by a family mem-
tion of the employe of a dealer, distributor or        ber of a deceased or incapacitated dealer under
manufacturer shall be countedd as a conviction         the existing franchise agreement, such manufac-
of the employer                                        turer, factory branch or distributor may, within
   (b) If' a transporter is, convicted under s .       30 days of receipt of` notice of the designated
341 .55 (3) a second or subsequent time within         family member's intent to succeed the dealer in
the same license ; year, the department shall:         the ownership-and operation of the dealership,
revoke thee license of such transporter for a          serve upon such designated family member and
period not to exceed one year                          the departmentnotice of'its refusal #o honor the
   (c) ; A dealer, distcibufor, manufacturer or        succession and of-its intent to discontinue the
transporter, whose : . license has been revoked        existing franchise agreement with the dealership
shall forthwith surrender its registration plates      no sooner than 60 days : from the date such
to a traffic officer or peace officer designated by    notice is served. :- Such notice shall state the
the department . A dealer, distributor, manu-          specific grounds ;for the refusal to honorr the
f"acturex or transporter: who fails.s to, return the   succession and the discontinuance of' . the
plates as required by this subsection may be           franchise agreement, If no notice of-such re-
fined not more than $200 or imprisonedd not            fusal and discontinuance is timely served upon
more than .6 months or both .                          the family member and department, or, if the
   (d) The appeal of a conviction does not             officee of the commissioner of transportation
suspend the act: or order of'revocationn unless a      rules in favor of the complainant in a hearing
                   Electronically scanned images of the published statutes.
 3745                                          AUTO DEALERS-FINANCE COMPANIES 218 .01 .

held under par .. (d), the franchise agreement t          of motor vehicles , but may not limit the price at
shall continue in effect subject to termination           which licensees may sell, assign or transfer
only in the manner prescribed in this                     receivables, contracts or other evidence of any
subchapter.                                               obligation arising outt of an instalment sale
                                                                                                      t
    (d) Any designated family member who re-              made under this section .
 cei ves a notice of the manufactu re r's, factory           (b) The commissioner and office of the com-
 branch' s or distributor ' s refusal to honor hi s or    missione r of transportation shall have the
 her succession to the ownership and operation            power in hearings and trials arising under this
 of the dealership may within the 60-day notice           chapter to determine the place, in the state of
 period , serve on the respondent and file in             Wisconsin, where they shall be held ; to sub-
 triplicate with the office of the commissioner of        poe n a witnes ses ; t o take dep ositi o n s, of wit-
 transpartation a verified complaint for a hear-          nesses residing without the state, in the manner
                           n
 ing and . .d determination by the office of the          provided for in civil actions in courts of record ;
 commissioner of transportation on whether                to pay such witnesses the fees and mileage for'
 good cause exists fOr such refusal and discontin-        their attendance as is provided for witnesses in
 uance . The office of the commissioner, of trans-        civil a ction s in court s of record ; and to adminis-
 portation shall forward a copy of the complaint          ter oaths .
 to the department.. The- manuf'actucex, factory              (c) The licensor may.y make such rules and
                                                                      e
 branch or dis t ributor shall have the burden of          regulations as it shall deem necessary or proper
 establishing good cause for such refusal by               for the effective administration and enforce-
 showing that the succession would be detrimen-            ment of this section, but no licensee shall be
 tal to the public interest or , to the representati on    subject to examination or audit by the licensor
 of the manufacturer-,,f 'actory branch or distribu-       except as provided in sub . . (3) (d) .
 tor : The fr anchise agreement shall continue in             (5m) CONTRACT , PROVISIONS (a) No contract
 effect until the final determination of the issues        for the sale of a motor vehicle shall contain a
 raised in such complaint If the complainant               clause which, upon nonacceptance of the vehi-
 prevails he or she shall have a cause of action .         cle by the buyer, would subject the buyer to a
 against the defendant for ' reasonable expenses           penalty greater than 5 per cent of the cash price
 and attorney ' s fees incurred in such matter . If        of the vehicle .
 the m anufac turer , factory br anch or distributor          (6) INSTALMENT SALES . (a) Every retail instal-
prevails, the office of the commissioner of' trans-        ment sale shall be evidenced by an instrument in
portation shall include in its order approving             writing, which shall contain all the agreements
the termination of ' the;f 'ranchise agreement such        of the parties and shall be signed by the buyer .
conditions as are reasonable and adequate to                  (b) Prior to or concurrent with any instal-
afford the complainant an opportunity to re-               ment sale, the seller shall deliver to the buyer a
ceive fair and reasonable compensation for, the            written statement describing clearly the motor
value of " the dealership .                                vehicl e sold to the buyer, the ca sh s ale price , the
    (e) Nothing in this subsection shall prevent a         cash paid down by the buyer, the amount
dealer, during the dealer' s lifetime , from                                               y
                                                           credited the buyer' for any trade-in and a
designating any person as his or ' her successor                                            e
                                                           description of' the trade-in, the cost to the retail
dealer by written instrument filed with the man-           buyer, of any i nsurance , the amount financed
ufacturer           y
; factory branch or distributor,„                               h
                                                          which may include the cost of insurance, sales
   (4) ADVISORY COMMITTEE, The licensor ma                and use taxes, the amount of the finance charge,
appoint annually one or more local advisory               the amount of any other charge specifying its
committees and one general advisory commit-               purpose, the total of " payments due from the
tee, each co ns istin g of n o t more than 9 mem-         buyer, the terms of the payment of " such total,
bers .. The committees upon request of the                the amount and. date of,. each payment necessary
licensor may advise and assist the IiEensor in the        finally to pay the total and a summary of any
administration of this section . The members of           insurance coverage to be effected . The commis-
said committees shall receive no compensation             sioner may determine the form of ' the statement ..
for their services ar expenses.                           If a written order is taken from a prospective
   (5) RULE S AND REGULATIONS . (a) the licensor          purchaser in connection with any instalment
shall promote the interests of retail buyers of           sale, the written statement shall be given to the
motor vehicles relating to default , delinquency,         purchase r prior to or concurrent with the sign-
repossession or collection charges and the re-            ing of the order by the purchaser . The finance
fund of the finance charge and insurance pre-             charge in a retail instalment sale made prior to
mium on prepayment of the instalment con-                 April 6, 1980, however' computed, excluding the
xcact . It may define unfair practices in the             cost of insurance shall not exceed the amount
motor vehicle industry and trade between licen-           computed on the basis of the following annual
sees or between any licensees and retail buyers           percentage rates:
                     Electronically scanned images of the published statutes.
218 .01 AUTO DEALERS-FI N A N CE CO M PANIES                                                            3746

    1 . Class 1 : Any new motor vehicle- 12 .. 75%       1981 and before November 1 , 1984 , or after
per year ; except for transactions of 72 months          October 31, 1987, or the refinancing , renewal,
or more-11 . .'7% per year .                             extension or modification on or after- Novem-
   2 Class 2 : Any used motor vehicle designated         ber 1, 1981 and before November 1, 1984, or
by the manufacturer by a year model of the               after October 31, 1987, of any such retail instal-
same- or 2 years prior to the year in which the          ment sale , excluding the cost of insurance , may
sale is made - 16 . . 25% per year ; except for          not exceed the maximum rate provided in s .
transactions of 72 months or more-14 7% per              4 2 2 20 1 (2)( bm )
year-                                                        2 . For any retail instalment sale which is not
   1 Class 3 : Any used motor vehicle not in             a consumer transaction as defined in s 421 301
Class 2 and designated by the manufacturer by            (13) and is made on or after November 1 , 1981
a year model not more than 4 years prior to the          and before November 1 , 1984, or after October
year in which the sale is made-21 . 25% per              31, 1987, or for any refinancing , renewal , exten-
year ; except for transactions of 72 months or           sion or modification on or after November 1,
more-19 .15% per year .,                                 1981 and before November 1 , 1984 , or after
   4 . Class 4 : Any used motor vehicle not in           October 31 , 1987, of any such retail instalment
Class 2 or Class 3 and designated by the manu-           sale, the maximum finance charges under pans .
facturer by a year model more than 4 years prior         (b) and (bm) do not apply .
to the year in which the sale is made-23 . . 25%            3 . For any retail instalment sale of ' a mobile
per year ; except for transactions of 72 months          home as defined in s 218 10 (2) made on or after
or more-20 . . 75°/d per year                            November 1, 1981 and before November 1 ,
   5 Class 5 : Any new truck or truck tractor            1984, or after October 31, 1987 , or for any
having a gross vehicular weight of` 15,000               refinancing, renewal, extension or modification
pounds or more - 15 . . 25% per year .                   on or after November 1 , 1981 and before No-
   b The maximum' allowable finance charge               vember 1, 1984, or after October 31 , 1987, of
shall be computed on the declining principal             any such retail instalment sale , the maximum
balance of` the amount financed as determined            finance charges under gars . (b) and (bm) do not
under par (b) (intro ) at the annual percentage          apply .
rates provided for in the classes under subds 1             (bp) A retail instalment sale made after Octo-
to 5 according to the actuarial method as de-            ber 31, 1984 and before November 1, 1987 , is
fined in s. 421 .301 (1) .                               not subject to any maximum finance charge
   7 . A minimum finance charge of $15 may be            limit
charged, on any instalment sales contract in                (c) An exact copy of the instalment sale
which the finance charge, when computed at the           contract and any note or notes given in connec-
rates indicated , results in a total charge of less      tion therewith shall be furnished by the seller to
than this amount .                                       the buyer at the time the buyer ` signs such
   8 . In addition to other charges , an instalment      contract . The buyer's copy of the contract shall
sales contract may include a charge sufficient to        contain the signature of ' the seller identical with
cover the fee for filing the termination state-          the signature on the original contract . No
merit required by s 409 404 . .                          contract shall be signed in blank except that a
   (bm) The finance charge in a retail instalment        detailed description of ' the motor vehicle includ-
sale made on or after April 6, 1980 and prior to         ing the serial number- or other identifying marks
November 1 , 1981, or the refinancing, renewal,          of the vehicle sold which are not available at the
extension or modification on or after April 6,           time of ` execution of' such contract may be filled
1980 and prior to November 1, 1981, of any               in before final delivery of the motor vehicle
retail instalment sale, however computed, ex-               (d) A violation of par (a), (b) , (bm) , (bn),
cluding the cost of" insurance shall not exceed          (bp) oY (k) bars recovery of any finance charge
the amount computed on the basis of the fol-
                                e                        by the seller, or an assignee of the seller who , at
lowing annual percentage rates :                         the time of the assignment, had knowledge of
    L Any new motor vehicle, the lesser of i 8%          the violation, in any suit upon a sales contract
per year or a rate of not more than 4% in excess         arising fr om the sale where the violation
                                                                                    e
of the discount rate on ' 90-day commercial
                                     y                   occurr e d :
paper in effect 1 S days prior to the date of' sale at      (e) Prior to 30 days after acquisition of any
the federalxeserve bank in the federal reserve           retail instalment contract from a 'retail seller ,
district where the `seller is located ,                  every` finance company shall mail or deliver to
    2 Any used motor, vehicle, 18% per year .            the retail buyer a written notice that it has
 "' (bn) ' 1 . Except as provi ded in subd : 3, the      acquired the retail instalmeiit contract from the
finance charge in a retail instalment sale which         retail seller, and shall also mail or cause to be
is a consumer transaction as defined ' in s .            mailed with the notice a statement of the partic-
421301 (13) made on or after November 1,                 ulars of the retail instalment contract price
                  Electronically scanned images of the published statutes.
 3747                                           AUTO D EALE R S-FI NAN CE CO M PANIES 218 .01

  required under par (b) to be stated by the retail         after November 1 , 1981 , if the motor vehicle is
  seller , in accordance with the finance com-              to be used primarily for business or commercial
  pany's records respecting such particulars , in-         purposes and not for the buyer's personal ,
  cluding the amount of the finance charge .                family or household use .
  Every finance company, if ' insurance is provided            (6m) NOTICE OF INSURANCE TO BUYER UNDER
  by it, shall a l so within the 30 days send or cause     INSTALMENT SALES CONTRACT, Whenever' a per-
  to be sent to the retail buyer a policy of insur-        son sells or agrees to sell any motor vehicle at
  ance clearly setting forth the exact nature of the       retail under a retail instalment contract wherein
  insurance coverage and the amount of the pre-            provision is made` for, insurance coverage , or a
  miums , each stated separately, which shall be
                                             h             charge is made therefor; such policy so issued or
      d
  filed with the commissioner of insurance in              provided for , shall include public liability cover-
  accordance with ch 625 The cancellation and              age protecting the driver of such motor vehicle
 rewriting of any such policy shall comply with            against damages resulting from the negligent
  the requireme nts of 's 631 . 69 .                       use thereof; or the seller shall , in writing , notify
      (em) In e v ent the dealer shall finance the         the buyer at the time of making such contract
 instalment sale contract , the commissioner may           that the motor vehicle is not covered by public
 permit him to combine the information re-                 liability insurance protecting the driver against
 quired by pans (b) and (e) last above in one              damages ' resulting from the negligent use
 statement under such rules and regulations as
                                      d                    thereof '. : The seller shall obtain , on a form
 the commissioner may from time to time    e               separate from the retai l instalment contract , the
 prescribe:                                                signed acknowledgment of' the buyer that he or
     (f) Any retail buyer of a motor vehicle, resi-        she has been notified that the contract does or
 dent in t he state of Wisconsin, at the time of           does not include such insurance .
 purchase, under a retail instalment contract ,                (7) PROHIBITED H ers . (a) No manufacturer of
 shall have a valid defense in any action or               motor! vehicles, no wholesaler or distributor of
 proceeding a t law to enforce said contract by           motor vehicles , and no officer, agent or repre-
 any finance company not licensed heteunder,              sentative of either shall induce or coerce , or
 which has purchased or otherwise acquired                attempt to induce or coerce, any retail motor
 such contract, if such finance company has               vehicle dealer of prospective retail motor vehi-
wilfully failed or refused to comply with par . (e) .     cle dealer in this state : to sell, assign or transfer
     (g) Any retail buyer of a motor vehicle ,            any retail instalment sales contract, obtained by
resident of ' the state of Wisconsin at the time of       such dealer in connection with the sale by him in
purchase , under a retail instalment contract             this state of motor vehicles manufactured or
made in this state, shall have a valid defense            sold by such manufacturer , wholesaler or dis-
against the recovery of' the principal , finance          txibutox , to a specified sales finance company or
charge and other fees included in the contract,           class^ of such companies, or to any other speci-
in any action or proceeding at law to enforce the         fied person, by any of' the acts or means herein-
contract by any person who has purchased or               after set forth ; namely :
otherwise acquired the contract , if the person               1 . By any statement, suggestion, promise or
has failed or refused prior to the purchase or            threat that such manufacturer , wholesaler or
acquisition to be licensed as a sales finance             distributor will in any manner benefit or injure
company under this section, and the person is             such< dealer, whether such statement , sugges-
actually engaged in business , in whole or in part        tion, threat or promise is express or implied , or
as ' a sales finance company;                             made directly o r indirectly .
    (h) All transactions which constitute con-               2.. By any act that will benefit or injure such
sumer transactions (s . 421 301 (13)) are subject         dealer.,
to :chs . 421 to 427 , in addition : to this section ..       3 . By any contract, or any express or implied
   (j) This subsection does not apply to a retail         offer of contract, made directly or indirectl y to
instalment sale made on or after April 6 , 1980           such dealer, for handling such motor vehicles ,
and prior to November , 1 , 1981, of a motor              on the condition that such dealer sell , assign or
vehicle having a gross vehicular weight or a              transfer his retail instalment contract thereon,
gross carrying weight of 15,000 pounds or more            in this state ; to a specified sales finance com-
if the motor vehicle into be used primarily for a         pany or class of"such companies, or to any other
business or commercial purpose , or to any                specified person .
refinancing, renewal; extension or modification              4.' By any express or implied statement or
on or after ~April 6, 1980 and prior to November          representation, made directly or indirectly, that
1, 1981, of' any retail instalment sale of such a         such dealer is under any obligation whatsoever
motor vehicle .                    -                      to sell , assign or transfer any of his retail sales
   (k) This subsection does not apply to a reta il        contracts, in this state, on motor vehicles manu .
instalment sale of' a motor vehicle made on or            factured or sold by such manufacturer, whole-
                     Electronically scanned images of the published statutes.
218.0 1 AU TO DEA LER S-FI NANCE COMPAN IES.                                                           3748

safer or distributor to such sales finance com-         company licensee in this state, and no such
pany , or class of companies, or other specified        licensee in this state shall accept or receive or
person , because of any relationship , or , affilia-    contract or agree to acceptor receive directly or
tion between such manufacturer-, wholesaler or          indirectly any payment or service of value from
distributor and such finance company or com-            any manufacturer, if' the effect of the payment
panies or such specified person or persons .            or giving of any such thing of'service or value by
   (b) Any such statements, threats , promises ,        the manufacturer, or the acceptance or receipt
acts, contracts or offers of contracts, set forth in    thereof by the sales finance company licensee,
par . (a) are declared unfair trade practices and       may be to lessen or eliminate competition or
unfair competition and against the policy of this       tendd to grant an unfair trade advantage or
state, are unlawful and are prohibited .                create a monopoly in the licensee who accepts
   (c) No sales finance company, and no officer,        or' receives thee payment, thing or service of
agent or representative thereof, shall induce or        value or contracts or agrees to accept or receive
                                              y
coerce or attempt to induce or coerce any retail        the same..
motor vehicle dealer to transfer to such sales             (7a) MOTOR VEHICLES . (a) No motor vehicle
finance compan y any of the retail instalment           shall be offered for sale by any motor vehicle
sales contracts in this state of ' such dealer on any   dealer or motor vehicle salesman unless the
motor vehicle by any of the following acts or
               e                                        odometer reading thereon is disclosed in writing
means, namely :                                         by the prior owners and such disclosure is
    1 . By any statement or representation, ex-         subsequently shown to the retail purchaser by
press or implied, made directly of indirectly,          the dealer or salesman prior to sale . Such
that the manufactuxei , wholesaler or ; distribu-       disclosure requirement shall not apply to a
tor , of such motor vehicles will grant such dealer     motor vehicle with a gross weight rating of
a franchise to handle such motor vehicles if such       more than 16,000 pounds or a vehicle 25 or
dealer shall sell, assign or transfer all or part of    more years old, or a new vehicle obtained by
such retail sales contracts to such sales finance       such dealer directly from a manufacturer or
company,                                                distributor
   2 .. By any statement or representation, ex-            (b) It shall be unlawful for any motor' vehicle
press or implied , made directly or indirectly,         dealer or motor vehicle salesman to fail to
that the manufacturer, wholesaler or distribu-
     t
tor of such motor vehicles will , in any manner         provide, upon request of a prospective pur-
benefit or injure such dealer if ' such dealer shall    chaser, the name and address of the prior owner
or shall not sell , assign or transfer all or part of   of any motor vehicle offered for sale.
such retai l sales contracts to such sales finance        (7 b) PU R C HASE OF MOTOR VE HI C LE BY MI NOR..
company . .                                             No minor shall purchase anyy motor vehicle
    3 . By an express or implied statement or           unless the minor, at the time of purchase, sub-
representation made directly or indirectly, that        mits to the seller a statement verified before a
there is an express or implied obligation on the        person authorized to administer oaths and
part of ' such dealer to so sell, assign or transfer    made and signed by either parent of the pur-
all or part of ' such retail sales contracts on such    chaser, if' such . parent has custody of the minor
motor vehicles to such sales finance company            or, if neither parent has custody, then by the
because of any relationship or affiliation be-          person having custody,, setting forth that the
tween such sales finance company and the man-           purchaser has consent to purchase the vehicle
ufaeturer, wholesaler or distributor of such            The signature on the statement shall not impute
motor vehicles                                          any liability for the purchase price of the motor
   (d) Any such statement or representations set        vehicle to the consenting person The statement
forth in par,, (c) are declared to be unfair trade      shalll not adversely affect .any other arrange-
practices and unfair competition and against            ment for' the assumption of liability for the
the policy of this state , are unlawful and are         purchase price which the consenting_ person
prohibited ,                                            may make . . Thee signed statement shall accom-
   (e) Any retail motor vehicle dealer who,
            y                                           pany the applicationn for a certificate of title and
pursuant. to any inducement, statement, prom-           shall be filed by the department with the appli-
ise or threat heieinbefore declared unlawful,           cation . Failure to obtain the consent or to
shall sell, assign or transfer any or all of his        forward it with the application for a certificate
retail instalment contracts shall not be guilty of      of title shall not void the contract of sale of a
any unlawful act and may .y be compelled to             motor vehicle in the hands of an innocent
testify to each such act . .                            holder, without notice, for' value and in the
   (f) No manufacturer shall d i rectly or indi-        ordinary course of business . . Any person who
rectly pay or give, or contract to pay or' give,        sells a motor. vehicle to a minor with knowledge
anything of service or value to any sales finance       of such fact without procuring such a statement
                            Electronically scanned images of the published statutes.
   3749                                                           AUTO DEALERS-FINANCE COMPANIES 218 . 015

   may be fined not more than $200 or imprisoned                                  repair of a nonconformity ; including the costs
   not more than 6 months or both . .                                             of obtaining alternative transportation .
      (8) PENALTIES s . Except for sub (3) (a) 1, 3, 6, 7,                           (b) "Consumer" means any of the following :
   11, 12, 13, 20, 25, 29 and 30, any person                                         1 The purchaser of 'a new motor vehicle, if
   violating this section may be required to forfeit                              the motor vehicle was purchased from a motor
   not less than $25 nor more than $500 for each                                  vehicle dealer for purposes other than resale ..
  violation .                                                                        2 . A person to whom the motor vehicle is
      (8m) COMMENCEMENT OF ACTION . Upon the                                      transferred for purposes other than resale , if the
  request of the licensor, the department of justice                              transfer occurs before the expiration of ' an ex-
  or the district attorney may commence an ac-                                    press warranty applicable to the motor vehicle
  tion in the name of the state to recover a                                         3 . A person who may enforce the warranty .
  forfeiture under sub . . (8)' An action under sub . .                              (c)' "Manufacturer" means a manufacturer
  (8)shall be commenced within 3 years' after the                                 as defined in s . 218 : 01 (1) (n) and agents of the
  occurrence of the unlawful-actor practice which                                 manufacturer , including an importer, a distrib-
  is the subject of the action.                                                   utor, factor y branch , distributor branch and
     (9) Civic DAMAGES. (a) Any licensee suffering                                any warrantors of' the manufacturer' s motor
  pecuniary loss because of a violation by any                                    vehicles , but not including a motor vehicle
  other licensee of sub, (3) (a) 4, 11, 15 ; 16, 17, 23,                          dealer .
  24, 26 or 32 or because of any unfair practice                                     (d) " Motor vehicle " means a motor vehicle e
  found by the commissioner or office of the                                      as defined in s . 218 01 (1) (k), but does not
 commissioner of transportation under sub (5)                                     include any vehicle that is not motor-driven .
 (a) may recover damages therefor in any court                                       (e)' " Motor vehicle dealer " has the meaning
 ofcoinpetent juzisdiction in an :amount equal to                                 given under s 21$ , 01 (1) (a) .
                                                                                     (f) "Nonconformity" means a condition or
 3 times the pecuniary loss together with costs
 including a reasonable attorney fee ..                                           defect which substantially impairs the use , value
                                                                                  or safety of a motor vehicle, and is covered by
     (b) Any retail buyer suffering pecuniary loss
                                                                                  an express warranty applicable to the motor
 because of a violation by a licensee of sub (3)
                                                                                  vehicle, but does not i nclude a condition or
 (a) 4, 5, 6, 8, 9, 10, 11, 18 or 3 1 may recover
 damages, for the loss in any court of competent                                  defect which is the result of abuse , neglect or
 jurisdiction together with costs, including rea-                                 unauthorized modification or alteration of the
 sonable attorney fees . _                                                        motor vehicle by a consumer .
     History: 19 7 1 c : 112, 125 ; 1 971 c 164 ss 64 , 83 ; 1971 c .                (g) " Reasonable allowance for use" means
22 8, 2,39 ;1973 c 171, 243 ; 1 975 c 9 4, 1 21 , 263, 36 1 ; 197 5 c            an amount attributable to a consumer ' s use of a
3 75 s 44 ; 1975c 407, 421 , 422 ; 1 977 c . 29 ss, 1 363 t o 1 372,             motor vehicle, but does not include any period
 1 65 4 (7) (a), (c); 1 977 c 270, 273, 288, 405 , 41 8, 447 ; 1979 c.
34 , 1 68; 22 1 ; 198 1 c . 45 ss 24 , 25, 51 ; 198 1 c 100, 27 2; 198 1 c       after' the consumer ' s first report to the manufac-
3 47 s. 80 ( 2) ; ] 98 1 c 382 ; 1 98 1 c 3 90 s 25 2 ; 1 983 a. 36 ss 76,       turer or any of its authorized motor vehicle
77, 96 (1) ; 1983 x. . 147, 153, 154 ;- 1983 a,- 1 89 ss 240 , 241 , 329
(30) ; 1983 a. 1 9 2 , 243 ;'46 0                                                dealers of a 'nonconformity with an express
     S ecti o n 1 8 0 ,8 47 (1), p res cr i bin g th a t no f oreig n cotpoca-   warranty applicable to the motor vehicle during
 tio n transacting business i n t he s tate w it h o ut a certif te of ica       which the motor vehicle is out of service due to
 authority, i f r e qui red , s h ah b e per mi t ted t o m a in tain or de-
 fend a evil action or s pec ial proceeding, u n til it obtains a                the nonconformity
 certificate o f a u t hori ty-and 21 8 .0 1 (2) (b d ) 3 - providing               (h) " Reasonable attempt to repair" means
 th a t the o btai n i n g o f a license u nd er the M otor Vehicle Deal -
 ers Law s hall con clusive l y est abli s h tha t such d istrib u tor is        a ny of the following occurring within the term
 d o in g bu sin ess in this state-have e nti rely dif f ere nt purp oses        of an express warranty applicable to a new
 a nd m eanings . N ag le Mo tor s v . Volkswagen N G. Dist ribu-
 tor , 51 W (2d) 413, 1 87 NW (2d) 3'74. .                                       motor `vehicle or within one year after firs t
      When an instalment sal e contract i s sig ne d i n bla nk it is                             e
                                                                                 delivery of - the motor vehicle to a consumer ,
 voi d . Vic H a n sen & Son s, Inc v C ro wl ey, 5 7 W (2d ) 106,               whichever is sooner:
 203 NW (2d ) 728 .
        Wilful " under ( 3 ) (a) 6 includes both n o n- accidental a nd              I The same nonconformity with the war-
                                                                                                  e
 fraudulent acts . Sta te need n o t prove intent t o deceive buye r              ranty is subject to repair by the manufacturer or
 under (3) ;(a) 1 8 . D e p t o f T ra n sp v ' Tran s p , Co m m lOS W
( 2d ) 678, ;3 T 5 NW (2d) 3 7 1 (C, tApp 1 48 1 ), afPd 11 ] W (2d )            any of its authorized motor vehicle dealers at
80, 3 3 0 NW ( 2d) 159 (1 98 3)                                                  least 4 times and the nonconformity continues . .
    S ee n ote t o 1 92 1 , citing 66 At ty Gen . 302 .                             2 , The motor vehicle is out of service for an
    The statute re qui res an initia l de t e rmina tio n by the div i-
sion under sub ( 5) (a), bu t no s uch requirem e nt is imposed                  aggregate of at least 30 days because of war-
o n cla ims under, sub (3) (a ) 17,, M oss ne r P or sche Audi , In cc           ranty' nonconfoimities
v Vol k swagenwe rk ; A G 397, F Supp 7 1                                           (2) (a) If a new motor vehicle does not
                                                                                 conform to an applicable express warranty and
218 . 015 Repair, replacement and refund                                         the consumer reports the nonconformity to the
under new motor vehicle warranties . (1) I n                                     manufacturer or any of its authorized motor
this section :                                                                   vehicle dealers and makes the motor vehicle
   (a) "Collateral costs" means expenses in-                                     available for repair before the expiration of the
curred•by ;a consumer in connection with the                                     warranty or one year after first delivery of ' the
                      Electronically scanned images of the published statutes.
218 .015. AUTO DEALERS-FINANCE COMPANIES                                                                   3750

motor vehicle to a consumer, whichever is                                  SUBCHAPT ER II
sooner , the nonconformity s hall be repaired .
                                                            ADJUSTMENT SERVICE COMPANIES
   (b) If' after a reasonable attempt to r e p air the
nonconformity cannot be repaired, the manu -
                                                           218. 02 Adjustment service companies . (1)
                                                                                          e
facturer s hall , at the direc t ion of' the cons um er,   DEFINITIONS, As used in this section :
either replace the motor vehicle with a compa-                (a) "Adjustment service company," hereinaf-
rable new motor vehicle or accept return of the            ter called company, shall mean a corporation,
motor vehicle and refund the full purchase price           association, partnership or individual engaged
plus an y amounts paid by the cons um er, at the           as principal in the business of prorating the
point of" sale and all collateral costs associated
     t                                                     income of a debtor to his creditor or creditors,
with the repair of the nonconformity less a                or of assuming the obligations of any debtorr by
reasonable allowance for use to the consumer               purchasing the accounts he may have with his
and any holder of a perfected security interest in         several creditors, in return for which the princi-
the motor vehicle, as their' interests may appear,         pal receives a service charge or other
                                                           consideration .
                   e
   (c) At the time of receiving the comparable
                                                              (b) "Commissioner" shall mean the commis-
new motor vehicle or refund under par . (b), the
                                                           sioner of banking .
consumer shall surrender the motor vehicle
                                                             (2) LICENSES ; APPLI C ATIONS;. F EE S; BOND . (a)
subject to the nonconformit y to the manufac-              Eachh adjustment service company shall apply to
turer together with the certificate of ' title with all    the commissioner of banking f'or' a license to
endorsements necessary, to transfer title to the           engagee in such business . Application for a
manufacturer . The manufacturer shall provide              separate license for each office of ;a company to
the consumer with the comparable new motor                 be operated under this section shall be made to
vehicle or refund no later than 30 da ys after an          the commissioner in writing, under oath, in a
offer to transfer title in compliance with this            form to be prescribed by the commissioner . The
paragraph by the consumer . _                              commissioner may issue more than one licensee
   (d) No motor vehicle returned by a consumer             to the same licensee :
under par': (b) may be resold unless full disclo-             (b) At the time of making application and
sure of the reasons for return is made to any              before engaging in business, every'applicant for
                                                           an adjustment service company license "shall pay
prospective buyer .
                                                           a fee of $100 to the commissioner for investigat-
   (3) All time periods under subs .. (1) (h) and (2)      ing the application and the sum of $100 as an
(a) are extended by any period during which                annual license fee .. If'the cost of'an investigation
repair services are not available to the consumer ,        exceeds $100; the applicant shall, upon demand
because of war, invasion, civil disturbance,               of the commissioner, pay the excess cost . . No
strike , casualty or natural disaster .                    investigation fee shall be required on the re-
   (4) Subsection (2) (b) does ` not apply to a            newal of a license ..
consumer who has not resorted to an informal                  (c) The commissioner may require any li-
dispute settlement procedure available to the              censee either before or after the issuance of the
                                                           license to file and maintain in forcee a bond in a
consumer and :
                                                           form to :be prescribed by him and acceptable to
   (a) Complying with 16 CFR Part 703 ; or                 him, in such sum as he may deem necessary to
   (b) Providing protections for the consumer              safeguard the interest of the borrowers and the
equal to or greater. than those provided under             public, not exceeding, however, the sum of
 16 CFR Part 703 .                                         $5,000 . .
   (5) This section does not limit rights or                  (3) CONDI TIONS OF THE ISSUAN C E OF LI CENSES , .

remedies available to a consumer under any                 The commissioner shall issue a .license to thee
other law                                                  applicant to conduct such business at the office
                                                           specified in the application in accordance with
   (6) Any waiver by a consumer of rights under            the provisions of this section,, if' the commis-
this section is void .                                     sioner shall find :
   (7) In addition to any other remedies, a                   (a) Thatt the applicant has filed the required
consumer d amaged by a violation of this sec-              application and paid the required fees .
tion may bring an action for twice the amount
                         n                                    (b) That the financial responsibility, experi-
of any pecuniary loss, t ogether with costs and            ence character and general fitness of'the appli-
disbursements and reasonable attorney fees,                cant and of'the'members thereof if'the appli-
and for equitable relief determined by the court .         cant be a partnership or association, and of the
  History : 1983 a.. 48                                    officers and directors thereof if'the applicant be
                                                           a corporation, are such as to command the
                  Electronically scanned images of the published statutes.
 3751                                           AUTO D EALERS-FI N A N CE CO M PANIES 218 .02

 confidence of the community and to warrant                   (d) If' the licensee has demonstrated untrust-
 belief that the business will be operated hon-            worthiness or incompetency to act in such busi-
 estly, fairly and efficiently within . the purposes       ness in a manner to safeguard the interests of
 of this section .                                         the public
    (c) That allowing such applicant to engage in             (7) POWERS OF COMMISSIONER . It shall be the
 business will promote the convenience and ad-             duty of the commissioner and he shall have
 vantage of the community in which the business            power, jurisdiction and authority to investigate
 of the applicant is to be conducted .                     the conditions and ascertain the facts with refer-
    ( 4) ORD ER DENYI NG APPLICAT ION': If 'the com-       ence to such companies and upon the basis
 missioner is not satisfied as to all of'the matters       thereof -
 specified in sub . . (3) he shall enter a special order      (a) To issue general or special orders in
denying the application for a license and shall            execution of or supplementary to this section ,
 return to the applicant his license fee . The             but not in co nfli ct th e rewi th , to pr otect de btors
commissioner shall make findings of fact as part           from oppressive or deceptive practices of
of and in support of his order denying any                 licensees ;.
application for a license .
                                                              (b) To regulate advertising and solicitation of
    (5) LI CENSES; POSTING ; CHANGES OF LOCAT ION;         business by licensees , and to prevent evasions of
RENEWAL (a) Every license issued shall state the           this section ;
address of the office at which the business is to
                                                              (c) At any time and so often as the commis-
be conducted, the name of the licensee, and if'
the licensee is a partnership or association, the          sioner may determine to investigate the business
                                                           and examine the books , accounts, records and
names of the members thereof, and if'a corpora-
                                                           files used therein of every licensee . The actual
tion` the date and place of its incorporation .
                                                           cost of such examination shall be paid to the
Such licenseshall be kept conspicuously posted
                                                           commissioner by every licensee so examined
in the office of the licensee and shall not be
                                                           within 30 days after demand therefor by the
transferable or assgnable .
                                                           commissioner, and the state may maintain an
   (b) Whenever a licensee shall contemplate a                            e
                                                           action for the recovery of such costs in any
change of his place of business to another                 court of competent jurisdiction ;
location within the same city or- village, he shall
give written notice thereof to the commissioner,              (d) To determine and fix by general order the
who shall attach to the license his authorization          maximum fees or charges that such companies
of such removal, specifying the date thereof and           may make .
the new location. Such authorization shall be                 (8) STATEMENT TO DEBTOR, When any settle-
authority for the operation of such business               merit or reduction of accounts has been made
under the same license at the specified new                by such company , it shall furnish the debtor on
location. No change in the place of business of            demand a verified statement showing the
a licensee to a location 'outside of the original          amount due creditors by the terms of such
                                                                                            e
city or village shall be permitted under the same          settlement o r seduction .
license .                                                     (9) RULES AND REPORTS ; FEES ; ENFORCEMENT .
   (c) Every licensee shall;, on or before the tenth       (a) The commissioner may make such rules and
day of`each December, pay to the commissioner              require such reports as he deems necessary for
the annual license fee for the next succeeding             the enforcement ., of this section ,         Sections
calendar year                                              212.: 17,217 . 18 and 217 .21 (1) and (2) apply to
   (6) REVOCATION; SUSPENSION ; REINSTATEMENT              and are available for the purposes of this sec-
AN D TERM OF LI CEN SES . The commissioner, after          tion. Orders of the commissioner under this
complaint, notice and hearings as provided ins .           section are subject to review by the consumer
21719, shall revoke any license in the following           credit review board under s . 220 . . 037 ..
cases :                                                        (b) All fees and moneys received by the
   (a) I f the licensee has failed to pay the annual       commissioner under authority of this chapter
license fee or to maintain in effect the bond                                          o
                                                           shall be paid by him into the state treasury
required under the provisions of this section ;            within one week after the . receipt thereof.
   (b) If'the licensee has violated any provisions            (c) The commissioner shall investigate , ascer-
of thiss section or of any lawful order issued             tain and determine whether this chapter or the
hereunder;                                                 lawful orders issued hereunder are being vio-
   (c) If any fact or condition exists which, if it        lated and for such purposes he shall have all of
had existed at the time of the original applica-           the powers conferred by ss . 217 . 17 and 217 .. 18 ..
tion for such license, clearly would have war-             The commissioner shall report all violations to
ranted ; the commissioner in refusing to issue               e
                                                           the district attorney of the proper county for
such license;                                              prosecution .
                     Electronically scanned images of the published statutes.
  218.02 AUTO D EALERS-FINA N CE COMPA N IES                                                             3752

      (10) PENALTIES Any person violating any of         cant is already licensed under this section, a nd
  the provisions o f this section shall be punished      the sum of $100 as an annual license fee . If the
  b y a fine of not more than $500 or b y imprison-      cost of investigation exceeds $100 , the applicant
  ment in the county jail for not more than 90           shall , upon demand of the commissioner , pay
  days, or by both such fine and imprisonment ..         the excess cost . No investigation fee is required
     History : 19 7 1 c .-. 125, 164, 215 ; 1973 c 3     on the renewal of a licen se
                                                            (c) The license fee for a collector or solicitor
                SUBCHAPTER III                           shall be $2 . This license shall be carried as a
                                                        means of identification whenever the collector
           COLLECTION AGENCIES                                                                 e
                                                        is engaged in business , The license shall sta te
                                                        the name of the employer and in case of a
   218.04 Collection agencies . (1) DEFINITIONS                                r
                                                        change of employer the commissioner sh all
   The following terms , as used in this section ,      indorse such change on the license without
   shalll have the meaning stated , unless the con-     charge .
   text requires a different meaning :                     (d) The commissioner may require any li-
      (a) " Collection agency " means any person        censee to file and maintain in force a bond , in a
  engaging in the business of collecting or receiv-     form to be prescribed by the commissioner and
  ing for payment for others of any account , bill      acceptable to him , and in such sum as he may
  or other indebtedness . . It shall not include        deem reasonably necessary to safeguard the
  attorneys at law authorized to practice in this       interests of the public „
  state and resident herein, b anks , express com-           (4) ISSUANCE OR DENIAL OF LICENSES (a) Upon
  pa nies savings and loan associations organized         the filing of such application and the pa yment
  under the laws of Wisconsin ; insurers and their                          e
                                                          of such Fee, the commissioner shall make his
  agents,' trust companies ; or professional men ' s     investigation, and if he finds that the character
 associations collecting accounts for its members        and general fitness and the financial responsi-
  on a nonp r ofit basis , where such members are        bility of the applicant, and the members thereof '
  requiredby law to have a license, diploma or   a       if the appl i cantis a partnership or association ,
 permit to practice or follow their profession,          and the officers and directors thereof if the
 real estate brokers and real estate salespersons .      applicant is a corporation, warrant the belief'
     (b) ,= "" Collecto r" or " solicitor" means any     that the business will be operated in compliance
                                                                            s
 pe rson employed by a collection agency to              with this section the commissioner shall there-
 collect or receive payment or to solicit the            upon issue a license to said applicant , Such
 receiving or collecting of payment for others of        license is not assignable and shall permit opera-
 any account, bill or other indebtedness outside         tion under it only at or f r om the location
 bf'the office                                           specified in the license . . A nonresident of this
    (c) `` Commissioner" means the commis-               state may , upon complying with all other provi-
 sioner of banking ..                                   sions of this section , secure a collection agenc y
     (d) " General order" means an order which is        license provided he maintains an active office in
  not a special order .                                 this state ,
     (e) " Licensee" means a person licensed under          (b) No licensee shall conduct a collection
  this section ,                                                                         y
                                                        agency business within any office, room or
     (f) "Person" includes individuals , partner-       place of business in which any other business is
 ships, associations and corporations .:                solicited or engaged in , or in a ssociation or
     (g) " Special order" means an order against a      conjunction therewith , except as may be autho-
 person                                                 rized in writing by the commissioner upon his
    (2) LICENSES REQUIRED No person shall oper-         finding that the character of such other business
 ate as a collection agency or as a collector or        is such that the granting of such authority
 solicitor in this state without first having ob-               d
                                                        would not facilitate evasion of this section or
 tained a license as required by this section .         the lawful orders issued thereunder ,
    (3) LICENSES; APPLICATIONS ; FEES ; BOND : (a)          (5) REVOCATION ; SUSPENSION ; REINSTATEMENT
 Application for licenses under .the provisions of     of LICENSES . (a) The commi s sioner may suspend
 this section shall be made to the commissioned        or revoke any license issued under this section if
in wr iting , under oath , on a form to be pre-        he finds that :
scribed by the commissioner , All licenses shall            1, The licensee has violated any ofthe provi-
expire on June thirtieth next following their          sions of this section or any lawful order of the
date of issue                                          commissioner made thereunder ;
    (b) At the time of making application, every           2 . Any fact or, condition exists which , if it had
applicant for a collection agency license shall        existed at the time of the original application for
pay a fee of $100 to the commissioner for              such license , would have warranted the com-
investigating the application, unless the appli-       missioner in refusing to issue such license ;
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 3753                                          AUTO . . DEALERS-FINANCE COMPANIES 218 .04

   3 . The licensee has failed to pay the annual             (7) POWERS OF COMMISSIONER ; ADVISORY COM-
license fee or to maintain in effect the bond              MIT i EES . It shall be the duty of the commissioner
required unde r sub . (3) (d) ;                           and he shall have power , jurisdiction and au-
   4 , The l icensee has failed to remit money due         thority to investigate the conditions and ascer-
to any and all claimants or forwarders within 30           tain the facts with reference to the collection of
days from the close of the month during which              accounts and upon the basis thereof `.
the collection was effected ; or                                (a) To issue any general or special order in
   5 . The licensee or any officer or employe of' it       execution of ' or supplementary to this chapter to
has violated chs421 to 42 '7 ..                            protect the public from oppressive or deceptive
   (b) No license shall be revoked or suspended            practices of licensees and to prevent evasions of
except after a hearing . A complaint stating the           this chapter-,
grounds for suspension or- revocation together                  (b) For, the purpose of discovering violations
with a notice of hearing shalll be delivered to the
    h                                                      of this section the commissioner' may cause an
licensee at least 5 days in advance of the heax-           investigation to' be made of the business of the
ing . In the event the licensee cannot be found ,          licensee transacted under the provisions of this
complaint and notice of hearing may be left at
                                            y              section , and shall cause an investigation to be
the place of business stated in the license and           made of convictions reported to him by any
this shall be deemed the equivalent of delivering         district attorney for violation by a licensee of
the notice of hearing , and complaint to the              any of the provisions of this section , The place
licensee . .                                              of business, books of ' aecounYs, papers , records,
   (c) In the event of the death of a licensee , if       safes and vaults of said licensee shall be open to
                                                          inspection and examination by 'the commis-
the licensee is an individual , or of the partners , if
the licensee is a partnersh i p, ., the license of the    sioner or his representative for the purpose of
                                                          such investigation and the commissioner shall
agency shall terminate as of the date of' death of
                                                          have authority to examine under oath all per-
said licensee, except the commissioner may rein-
                                                          sons whose testimony he may require relative to
state a license if " the- estate of the former licensee
                                                          said investigation : The cost of ' the first investi-
signifies to the commissi oner within 45 days its
                                                          gation or examination during any licensing year
intention to continue the business of' the agency .
                                                          shall be paid b y the licensee, but the cost of
   (6) LICENSES ;. POSTING; CHANGES OF LOCATION;          additional investigation or examination during
RENEWAL . (a) Whenever a collection agency            y   such year shall be paid by the licensee only if
shall contemplate a change of its place of busi-
                      e                                   such examination discloses violation of' sub (5)
ness to another location within the same city or
                                                          (a)4 , Said cost shall be determined by prorating
village , it shall give written notice thereof to the
                                                          the amount of salaries and expenses of all
commissione r ; who shall attach to the license           examiners, employes and other persons en-
his authorization of such removal , specifying
                                                          gaged in examining licensees under this section,
the date thereof and the new location , Such
                                                          if ' any, and any other expenses which may be
authorization shall be authority for the opera- ,
                                                          attributable thereto . The licensee shall pay the
                                  r
tion of such business under the same license at
                                                                                                     s
                                                          cost of any hearing including witness fees , un-
the specified new location .            All collection
                                                          less it be found by the commissioner , board of
agency licenses shall be conspicuously posted in
                                                          review- or court that licensee has not violated
the office of the licensee .
                                                          any provision of this section . . All said costs shall
   (b) Every licensee applying for a renewal of                               e
                                                          be paid by the licensee within 30 days after
                                    e    e
his license shall , on or before the first day of         demand therefor by the commissioner . The
June, pay in advance to the commissioner the              state may maintain an action for the recovery of
annual license fee . .                                    such costs and expenses. in any court of compe-
                                                                            d
   (c) Before discontinuing operating as a col-           tent jurisdiction ..
lection agency under the provisions of this                  (c) To appoint advisers fr om the individuals
section, every licensee shall furnish the commis-         engaged in the collection business in the state
sioner with proof' n . a form to be determined by         and in any locality, which advisers shall be
the commissioner and approved by the advisory                               d
                                                          consulted by and shall assist the commissioner
committee that :                                          in the execution of his duties under the provi-
   i . Proper remittance has been made to all             sions of this section. The commissioner may
claimants or forwarders on money collected ..             appoint such advisers as deputies .. Such per-
   2 All accounts have been returned to the               sons, either as advisers or deputies, shall receive
claimants or forwarders..                                                   n
                                                          no compensation for their services but may be
   3 . All valuable papers given to; the licensee by      reimbursed for their actual and necessary trav-
the claimant or forwarder, in connection with             eling expenses . Such expenses shall be audited
claims have been returned to the claimants or
                  n                                       and paid and charged to the commissioner for
forwarders .                                              the administration of this chapter .
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 218 .04 AUTO DEA LERS-FI NAN CE COMPANIES                                                              3754

    (d) To make all necessary or proper orders,          the best interests of' the claimants of such collec-
 rules and regulations for the administration and        tion agency
 enforcement of this section . .                            (d) The provisions of s . 220 08 (3b), (4), (6),
    (8) HEARINGS AND ORDERS The CO 1T1ri7 1 S -          (7), (8), (13), (14) and ( 17) shall apply to thi s
 sinner shall have the same power to conduct             section insofar as they are applicable .
 hearings, take testimony and secure evidence as             (e) The commissioner shall cause notice to be
 is provided in 'ss. 217 ..17, 217 18 and 217 .19 .      given by publication of 'a class 3 notice , under
    (9) ADMINISTRATIVE REVIEW Any licensee or            ch . 985 , if no action has been commenced under
 other person in interest being dissatisfied with        par . (f), calling on all pe rsons who m ay have
 any order of the commissioner made under this           claims against such licensee, to present the same
 section may have a review thereof as provided           to the commissioner, and make legal proof '
 ins . 220 .037 .                                        thereof ' at a place and within a time, to be
      (9m) DELINQUENT COLLECTION A GENCI ES;            therein specified . . The commissioner may mail a
  C OMMISSIO NE R MAY TAK E P O SSESSI ON.. (a) If the  simila r notice to all persons whose names ap-
  commissioner finds that a licensee is insolvent       pear as claimants or forwarders upon the books
  or that he has collected accounts but has failed      and r ecords of' the licensee or as may appear in
  to remit money due to any claimant or for,-           the records of the commissioner on the sworn
  warder; within 30 days from thee end of the           reports required to be furnished the commis-
 month in which collection was-made, and it is          sioner according to the provisions of ' sub . (10) .
 necessary to protect the interest of the public or          y
                                                        Any claimant or forwarder whose portion of
 when the license of a collection agency has            the collection or collections has not been prop-
 expired or has terminated for any reason what-         erly remitted shall file a claim which shall be
 soever, he may take possession of the assets and       considered as a preferred claim for the amount
 the books and records of the . licensee for the        actually due the claimant or forwarder after
 purpose of liquidating its business, and for such, deducting any commission or fee that may be
 other relief' as the nature of the case and the        due and owing the licensee . If the commissioner
 interest of the claimants or forwarders may            doubts the justice and validity of any claim , he
 require The liquidation of business shall be                                                     e
                                                        may reject the same and serve notice of such
 made, by and under the supervision of the              rejection ' upon the claimant either by mail or
 commissioner either in the name of the commis-         personally . An affidavit of the service of such
 sioner or in the name of the licensee : and thee       notice, which shall be prima facie evidence
 commissioner or his successor shall be vested          thereof ', .- shall be filed with the commissioner . .
 with title to all of the assets including the          An action upon a claim so rejected must be
 proceeds of'the bond or bonds which have been          brought in the circuit court for the county
 filed with the commissioner as provided for           wherein the licensee is located within 30 days
 under sub : (3), (d), and the proceeds of any and     after such service of ' such notice of rejection of'
 all money paid direct- to the claimant or for-        claim has been filed,: Claims presented after the
 warder by the debtor priorr to the date said          expira tion of ' the time fixed in t he notice t o the
 license has terminated. Money paid to the             claim ants or forwarders sha ll be entitled to
licensee or to the commissioner after the termi-       receive only liquidating dividends declared after
nation of the license shall be disposed of by the      presentation, unless otherwise ordered b y the
commissioner with the approval of the circuit          court, The court may fix a date after which all
court,                                                 claims sh all be barred .
     (b) In taking possession of the property and          ( f) Whenever any agency , of ' whose assets and
business of any such collection agency, the            business the commissioner has taken posses-
commissioner shall forthwith give notice to any        sion, as aforesaid, deems itself' aggr ieved
and all banks or bank'' corporations holding or        thereby, it may,, at any time within 10 days after
in possession of any bank balances or assets of such taking possession, apply to the circuit
such agency and thereafter- such assets shall be       court for the county in which the main office of
held subject to the order of the commissioner .        such agency is located to enjoin further pro-
    (c) In addition to the authority conferred by      ceedings; and such court, after citing the com-
pat . (b), the commissioner may, with the ap-          missioner to show cause why further proceed-
proval' of the circuit court for the county            ings'should not be enjoined and hearing the
wherein the main office is located, for the pur-       allegations and proofs of the parties and deter-
poses of collection or liquidation, sell, assign,      mining the facts, may, upon the merits dismiss
convey and transfer or approve the sale, assign-       such application or enjoin the commissioner
ment conveyance and transfer of the assets of          from further proceedings, and direct him to
such collection `agency under` such terms and          surrender such business and property to such
conditions as the commissioner may deem for            agency . .
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 3755                                         AUTO D EALERS-FI N A N CE CO M PA N IES 218 .05

    (g) Wheneve r the commissioner shall have               (13) ENFORCEMENT . It shall be the duty of the
 paid to each and every claimant or forwarder of         commissioner and he shall have power , jutisdic-
such collection agency , whose claims as such            tion and author ity to investigate, ascertain and
claimant or forwarder have been duly proved              determine whether this section or the lawful
and allowed the full amount of such claims and           orders issued hereunder are being violated and
shall have made proper provisions for un-                for such purposes the commissioner shall have
claimed and unpaid collections and shall have            all the powers confe r red by subs. (4) and (5) .
paid all the expenses of' the liquidation, he shall      The commissioner shall report all violations to
liquidate the remaining assets exclusivee of the         the district attorney of the proper county for
                                                           e
proceeds of' the bond or bonds for the benefit of        prosecution.
the general creditors ; or if no claims have been           History: 1971 c 125, 164, 239; 1973 c . 3 ; 19 ' 79 c . 102 s .
filed by or in . behalf' of the general creditors, the   236 (4); 1979 c 162s 38 (3) ; 19 7 9 c 341 s . 12 (2) ; 1983 a . 189 .
                                                            Requirement under this section that foreign collection
commissioner shall turn over the remaining               agency maintain Wisconsin office with records may not vio-
assets to the . circuit court for further                late commerce clause. 69 Atty Gen 113.
disposition .
   (h) All accounts andvaluable papers given to                              SUBCHAPTER IV
the agency by the claimant or forwarder in
possession of the commissioner ; pertaining to                      COMMUNITY CURRENCY
accounts placed with the agency f"or, collection                         EXCHANGES
shall be returned to the claimant or forwarded
by the commissioner within 30 days after verifi-          218.05 Community currency exchanges . (1)
cation of tlie . claim has been made .                    DEFirttiioNS . As used in this section :
   (10) ANNUAL REPORT ; RECORDS (a) Each li-                (a). ",`Commissioner" means the commis-
censee shall annually; on or before the fifteenth         sioner of banking .,
day of March ; file : a report with the commis-              (b) "Communityy currency exchange" means
sioner giving such reasonable and relevant in-           any person, except banks incorporated under
formation as the commissioner may, by general            the laws of this state andd national banks orga-
or special order , require concerning the busi-          nized pursuant to the laws of the United States
                                d
ness and operations conducted by such licensee           and any credit union operating under eh . 186
within the state . . . Such report shall be made         which obtains a certificate of authority from the
under: oath and shall be in the form prescribed          commissioner, engaged in the business of and
by the commissioner ..                                   providing facilities for cashing checks, drafts,
   (b) The commissioner shall require the li-            money orders and all other evidences of money
censee to keep such books and records in his             acceptable to such communityy currency ex-
place of business as• will enable the commis-            change for a fee, service charge or other consid-
sioner= to determine whether the provisions of           eration Nothing in this section shall be held to
this section are being: complied with . Every            apply to any person engaged in the business of
such licensee shall preserve the records of final        transporting for hire, bullion, currency, securi-
entry used in such business for a period of at           ties, negotiable or nonnegotiable documents,
least ' 6 years after final remittance is made on        jewels or other property of -great monetary
any account placed with the licensee for roller- .       value nor to any person engaged in the business
tion or after any account has been returned to           of selling tangible personal prope r ty at retail
the claimant on which one or more payments               nor, to any person licensed to practice a profes-
have been paid .                                         sion or licensed to engage in any business in this
   (11) SUBTERFUGE, The provisions of this               state, who, in the course of such business or
chapter shall apply to any licensee or other             profession and.,, as an incident :thereto; cashes
person who, by any device, subterfuge or pre-            checks, drafts, money orders or other evidences
tense whatever , shall make a pretended                  of money ;
purchase or a pretended assignment of accounts                                                               no
                                                            (2) , LICENSES REQU IR E D After, July 1 , 1945, ri
from any other person for the purpose of evad-           person ; firm, association, partnership .or cot po-
ing, the provisions of this section                      ration shall engage in the business of a commu-
   (12) P E rrnc riES Any person who shall violate       nity currency exchange without first securing a
any provision of this section shall be guilty of a       license to do so from the commissioner as
misdemeanor and, for- each and every such                required by this section ..
offense shall, upon conviction thereof, be pun-                                                            .
                                                            (3) LI CENSES ; APPLICATIONS; FEE S ; BO N D . (a)
ished by a fine of not more than $1,000 or by            Application for such license shall be in writing,
imprisonment in the county jail for not more             under oath, on a form to be prescribed by the
than 6 months, or by both such fine and                  commissioner : Each application shall contain
imprisonment.                                            the following information :
                      Electronically scanned images of the published statutes.
 218.05 AUTO D EALE RS--FI N A N CE CO M PA N IES                                                     3 7 56

    1 . The full name and address (both of resi-        application and an opportunity to be heard
 dence and place of` business) of thee applicant,       thereon.. If the application is denied,, the com-
 and if the applicant is a partnership or associa-      missioner shall, within 20 days thereafter, pre-
 tion, of every . member thereof, and the name          pare and keep on file in his office a written order
 and business address if the applicant is a             of denial which shall contain his findings with
 corporation .                                          respect thereto and the reasons supporting the
    2 The county and municipality, with street          denial, : and shall mail a copy thereof to the
 and number ; if any, where the community cur-          applicant at the address set forth in the applica-
 rency exchange is to be conducted ; and                tion, within 5 dayss after the filing of such order
    3 Such other information as the commis-                (5) FORBIDDEN TO ACT AS DEPOSITORY . No
 sioner may require .                                   community currency exchange shall be permit-
    (b) Such application shall be accompanied by        ted to accept money or evidences of money as a
 a fee of $100 for the cost of investigating the        deposit to be returned to the depositor or upon
 applicant . When thee application has been ap-         the depositor's order; and no community cur-
 proved by the commissioner and the applicant           rency exchange shall be permitted to act as
 so advised, the applicant shall pay an additional      bailee or agent for persons, to hold money or
 $100 as an annual license fee for a period             evidences thereof or the proceeds therefrom for
 terminating on the last day of the current calen-      the use and benefit of the owners thereof and
dar year,                                               deliver. such .h money or proceeds of evidence of
    (c) Before any license is issued to a commu-        money upon request or direction of such owner .
nity currency exchange the applicant shall filee           (6) INSURANCE Every applicant for a license
annually with and have approved by the com-             under this section shall, after the application for
missioner a surety bond in the principall sum of        a license has been approved,, submit a policy or
$5 ;000,' issued by an insurer authorized to do         policies' of insurance to be approved by the
business in this state .. The bond shall run to the     commissioner, issued by an insurer authorized
state of Wisconsin and shall be for the benefit of      to do businesss in this state, which insures the
any creditors of the community currency ex-             applicant against loss by burglary, larceny, rob-
change for any liability incurred forr any sum         bery, forgery or, embezzlement in a principal
due to any payee of any check, draft or money           sum determined by the commissioner . Any
order left with the community currency ex-              such policy, with respect to forgery, may carry a
change for collection, and also for any penalties      condition that the : community currency ex-
that may be imposed under this section . If the         change assumes the first $50 of each claim
commissioner finds at any time the bond is              thereunder.
insecure or exhausted or otherwise doubtful; an
                                                           (8) OTHER B USINESS FORBIDDEN . A commu-
additional bond in like amount to be approved
                                                       nity currency exchange shall not be conducted
by the commissioner shall- be filed by the li-
                                                       as a department of'another business .- It must be
censee within 30 days after written 'demand by
                                                       an entity, financed and conducted as a separate
the commissioner :
                                                       business unit This shall not prevent a commu-
    (4) LI CEN SES ; ISS UANCE; D ENIAL If the com-
                                                       nity currency exchangee from leasing a part of
 missioner shall find after investigation that the
                                                       the premises of another business for the conduct
 applicant is (a) trustworthy and reputable, (b)
                                                       of this business on the. same premises ; provided,
 that he has business experience qualifying him
                                                       that no community currency exchange shall be
 to competently conduct, operate, own, or be-
                                                       conducted on the same premises with a business
come associated with a community currency
                                                       whose chief source of' revenue is derived from
exchange, (c) that he has a-good business repu-
                                                       the, sale of alcohol beverages for consumption
tation and is worthy of a license, the commis-
                                                       on the premises . . This subsection shall not apply
sioner shall issue to the applicant qualifying
                                                       when such other business is subject to any
hereunder, a license to operate a community
                                                       statute which provides for supervision and ex-
currency exchange at the location specified in
                                                       amination by the commissioner .
the application, which license shall remain in
full force and effect until it is surrendered by the      (9) TOKENS No community currency ex-
licensee or revoked by the commissioner . If the       change shall issue tokens to be used in lieu of
commissioner shall not so find, he shall not           money for the purchase of goods or services
issue such license and shall notify the applicant      from any enterprise,
of such denial, retaining the investigation fee to        (10) LI CE NSES ; POSTING ; ASSIGNMENT ;
cover the cost of investigating thee applicant .       NUMBER; C HANGE OF LOCATION, (a) Such license
The commissioner, shall approve or' deny every         shall state, the name of the licensee and the
application within 30 . days from the filing           addresss at which thee business is to be con-
thereof. . No application shall be denied unless       ducted.- Such, license shall be kept conspicu-
the applicant has had notice of a hearing on said .    ously posted in the place of business of the
                 Electronically scanned images of the published statutes.
 3757                                        AUTO DEALERS-F I NANCE COMPAN IES 218 .05

licensee and shall not be transferable or              licensee to a return of any part of the a nnual
assgnable                                              license fee
   (b) No more than one place. o€business shall           (d) Every license issued hereunder shall re-
be maintained under the same license, but the          main in force until the same h a s been surren-
commissioner may issue more than one license           dered or revoked in accordance with this s ec-
to the same licensee upon the compliance with          tion , but the commissioner may on his own
the provisions of this section governing an            motion issue new licenses to a licens ee whose
original issuance of a license , for each new          license or licenses shall have been r e voked if n o
license.                                               fact or condition then exists which clearly
    (c) Whenever a licensee shall wish to change
                  r                                    would have warranted the commissioner in
his place of business to any location other than       refusing originally the issuance of s uch licen se
that originally set forth in his license, he shall     under this section . .
give written notice thereof to the commissioner             (e) No license shall be revoked until the
and if the change is approved the commissioner :        licensee has had notice of a hearing thereon and
      l       h
shall attach to the license , in writing, a rider       an opportunity to be heard .. When any license i s
stating the new address or location of the com-         so revoked, the commissioner shall within 20
munity currency exchange . :                            days thereafter, prepare and keep on file in hi s
   (11) RENEWAL, Every licensee shall , on or           office, a written order or decision of revocation
before December 20, pay to the commissioner             which shall contain his finding s with re spect
the sum of $50 as an annual license fee for the         thereto and the reasons supportin g the revoc a -
next succeed i ng calendar year and shalll at the      tion and shall send by mail a copy thereof to the
same time f i le with the commissioner the annual       licensee at the addre ss set forth in the licen se
bond and insurance policy or policies in the           within 5 days after the filing in his office of such
same amount and of the same . character as             order, finding or decision
required by subs (3) (c) and (6)                           (13) REVIEW OF ORDERS . Any person ag-
   ( 12)` ; REVOCAIION ; SURRENDER ; NOTICE, (a)       grieved by any order o f' the commi s sioner ma de
The commissioner may, upon 10 days' notice to          under this section may have a review thereof' by
the licensee by mail directed to the licensee at       the consumer credit review board und e r s
the address set forth in the license , stating the     220 . 037 .
contemplated action and in general the grounds             ( 14 ) ' A NNUAL. REPORT ; EXAMINATION ,. Each
therefor , and upon reasonable opportunity to          licensee shall annually , on or before February
be heard prior to such action, revoke any license       15 file a report with the commissioner (which
issued hereundei ' if ' he shall find that :           shall be used only for the official purpose s of the
   1 . The licensee has failed to pay the annual       commissioner ') giving such relevant information
license fee or to maintain in effect the requiredd     as the commissioner may reason ably require
bond or insurance policy or policies or to com-        concerning , and for the purpose of examining,
ply with any order , decision or finding of the        the business and operations during the preced-
commissioner made pursuant to this section ..          ing calendar year of each licensed pl ace of
   2 , The licensee has violated any provision of      business conducted by such licensee within the
this section or any . regulation or direction made     state .. Such report shall be made under oath and
by the commissioner, under this, section ,             shall be in the form prescribed by the commi s -
   3 Any fact or condition exists which, if it had     sioner„ The commissioner may at an y time and
existed at 'the time of the original application for   at least once in each year investigate the com-
such license, would have warranted the com-            munity currency exchange bu s iness of any li-
missioner in refusing the issuance of the license ..   censee and of every person , pa rtnership, a ss oci-
   (b) The commissioner may revoke .e only the         ation and corporation who or which shall be
particular license with respect to which grounds       engaged in the business of operating a commu-
for revocation may occur or exist , or if he shall     nity currency exchange . . For that purpose, the
find that such grounds for revocation are of           commissioner shall ha ve fr ee access to the of-
general application to all offices or to more than     fices and places of business and to such records
one office operated by such licensee , he may          of all such per-sons, firms, partnerships , associa-
revoke all of the licenses issued to such licensee     tions and corporations and to the officers and
or such number of licenses to which such               directors thereof that shall relate to such com-
grounds apply .                                        munity currency exchange business , The com-
   (c) A licensee may surrender any license by         missioner may require the attendance for exam-
delivering to the commissioner- written notice         ination under oath of all persons whose
that he surrenders such license , but such surren-                                                  h
                                                       testimony he may require relative to such bu si-
der shall not affect such licensee's civil or crimi-   ness , and in such cases the commissioner , or any
nal liability for acts committed prior to such         qualified representative of the commissioner ,
surrender, or affect his bond, or entitle such         may administer oaths to all such per sons called
                          Electronically scanned images of the published statutes.
  21 8. 0 5 AUTO DEALERS-FINANCE C OMPANIES                                                                    3758
 as witnesses , and the commissioner , or his rep-               (7) " New mobile home" means a mobile
 resentative, may conduct such examinations ,                 home which has never been occupied, used or
 and there shall be paid to the commissioner by               sold for personal or business use . .
            e
 the licensee fo r each examination a fee of $20                (8) "Primary housing unit" means a mobile
 for each day or part thereof required to conduct             home exceeding the statutory size under s .
 the examination .                                            34807
    History: 1971 c 125 ; 1979 c . 102 ; 1981 c . 79 s 17.
                                                                 (9) "Used mobile home" means a mobile
                   SUBCHAPTER VI                              home which has previousl y been occupied , used
                                                              or sold for personal or business use ..
            MOBILE HOME DEALERS                                  History: 1973 c 116, 132


 218 .10 Definitions . In this subchapter :                    218 . 11 Mobile home dealers regulated . (1)
   (1) "Deliver y date" means the date on which                No person shall engage in the business of selling
 a mobile home is physically delivered to the site            mobile homes to the ultimate consumer or to
 chosen by the mobile home owner .                             the retail market in this state unless first licensed
    (2) " Mobile home " means a vehicle designed              to do so by the department as herein provided .
 to be towed as a single unit or in sections upon a
                       e                                          (2) Application for- license and renewal li-
highway by a motor vehicle and equipped and                   cense shall be made to the department on such
used, or intended to be used , primarily for                  forms as it shall prescribe and furnish and shall
human habitation, with walls of ' rigid uncollap-             be accompanied by the annual license fee of
sible construction, " Mobile home" includes the               $SO, License shall expire on December 31 of
mobile home structure, including the .plumbing,               each year and applications for renewal licenses
heating and electrical systems and all appliances             shall be made on or before December 15 next
and all other equipment carrying a manufac-                   preceding expiration of the current license year .
turer's warranty .                                               (3) A:, license shall be issued only to persons
   (3) " Mobile home dealer " means a person                  whose character, fitness and financial ability, in
who, for a commission or other thing of ' value,              the opinion of'the licensing agency, is such as to
sells , exchanges , buys or rents , or offers or             justify the belief that they can and will deal with
attempts to negotiate a sale or exchange of an               and serve the buying public fairly and honestly,
interest in mobile homes or , who. is engaged                will maintain a permanent office and place of
wholly or in part in the business of selling                 business and an adequate service and parts
mobile homes , whether or not the mobile homes               department during the license year, and will
are owned by him, but does not include :                     abide by all the provisions of law and lawful
    (a) A receiver , trustee , administrator , execu-        orders of'the.department
tor-, guardian or other person appointed by or                  (5) A licensee shall conduct the licensed busi-
acting: under the judgment or order of any                   ness continuously during the license year,
court.                                                          (5m) Any person who shall violate any provi-
    (b) Any public officer while performing : his
                            r                                sion of this section shall be fined not less than
official duty.                                               $25 nor more than $100 for each offense..
  (c) Any employe of' a person enumerated in                    (6) The department may deny, suspend or
Par. .(a) or' (b)                                            revoke a`license on the following grounds :
    (d) Any lender as defined in s . 421 301 (22) .
                                                                (a) Proof of unfitness .
    (e) _ A person transferring a mobile home
                                  4
                                                                (b) Material misstatement in application for
 registered in his . own name and used for his
                                                             license'.
 personal, family or household purposes, if the
 transfer is an occasional sale and is not part of'             (c) Filing a materially false or fraudulent
 the business of the transferor .                            income tax return as certified by the department
   (4) "Mobile home manufacturer" means any                  of revenue :
person within or without this state who manu-                   (d) Wilful failure to comply with any provi-
factures or assembles mobile homes for sale in               sion of this section or any rule promulgated by
this state,                                                  the department under this section .
   (5) " Mobile home owner" means any person                    (e) Wilfully defrauding any retail buyer to the
or lessee thereof' who purchases a mobile home               buyer's damage .
primarily for use for personal, family or house-                (f) Wilful failure to performm any written
hold purposes .                                              agreement with any retai l buyer . .
   (6) " Mobile home salesperson" means any                    (g) Failure or refusal to furnish and keep in
person who is employed by a mobile home                      force any bond.d required .
manufacturer or dealer to sell or lease mobile                  (h) Having made a fraudulent sale, transac-
homes . .                                                    tion or repossession
                   Electronically scanned images of the published statutes.
 3759                                                  AUTO DEALERS-F I NANCE COMPAN IES 2 1 8.1 4

    (i) Fraudulent misrepresentation, circumven-                  salesman the dealer shall secure a mobile home
 tion or concealment through whatsoever sub-                      salesman's license in addition to the license for
 terfuge or device of any of the material particu-                engaging as a mobile home dealer .
 lars or the nature thereof required hereunder to                    (2) Applications for mobile home salesman ' s
 be stated or furnished to the retail buyer                       license and renewals ther ' eof ' shall be made to
     (j) Employment of fraudulent devices, meth-                  the department on . such forms as the depart-
 ods or practices in connection with compliance                   ment prescribes and furnishes and shall be
 with the statutes with respect to the retaking of                accompanied by the annual license fee of $4 .
 goods under retail instalment contracts and the                  The application shall require such pertinent
 redemption and resale of such goods.. .                          information as the department requires. Li-
    (k) Having indulged in any unconscionable                           s
                                                                  censes shall expire, unless sooner revoked or
 practice relating to said business .                             suspended,, on December 31 of each year and
   `(m) Having sold a retail instalment contract                             n
                                                                  application for renewal licenses shall be made
 to a sales finance company not licensed                          by December . 15 next preceding expiration of
 hereunder                                                        the current license year .
    (n) Having violated any law relating to the                      (3) Every licensee shall carry his license when
 sale, distribution or financing of mobile homes . .              engaged in his business and display the same
    (7 ) (a) The licensor may without notice deny                                                         e
                                                                  upon request . The license shall name his em-
the application for a license within 60 days after                ployer, and in case of a change of employer, the
receipt thereof' by written notice to the appli-                          n
                                                                  salesman shall immediately mail his license to
cant, stating the grounds for such denial .                       the licensor who shall indorse such change on
Within 30 days after such notice, the applicant                   the license without charge ,
may petition the office of the commissioner of                       (5) The provision of s . 218 . : 01 (3) relating to
transportation to conduct a healing to review                     the denial , suspension and revocation of a mo-
the denial, and a hearing shall be scheduled with                 tor vehicle salesman's license shall apply to the
reasonable promptness .                                           denial, suspension and revocation of 'a mobile
    (b) No license shall be suspended or revoked                  home salesman ' s license so far as applicable .
 except after a hearing thereon . . The licensor                     (6) The provisions of s 218 01 (3) (g) and (5)
 shall ; give the licensee at least 5 days' notice of                       y        s
                                                                  shall apply to this section , mobile home sales
 the time and place of such hearing . The order                   practices and the regulation of travel trailer or
 suspending or revoking such license shall not be                 mobile home salesmen , as far as applicable . .
 effective until after 10 days' written notice                      History : 1973 c It 6 ; 1977 c 29 s . 1654 (7) (a) ; ] 977 c.
                                                                  273 ; 1979 c. 221 .
thereof to the licensee, after such hearing has
 been had ; except that the licensor, when in its
                                                                  218 . 14 Warranty and disclosure , . (1) A one-
 opinion the best interest of the public or the
                                                                  year written warranty is required for every new
trade demands it, may suspend a license upon
                                                                  primary housing unit sold or leased by a mobile
not less than 24 hours' notice of hearing and
                                                                  home manufacturer, dealer or salesperson in
with not less than ' 24 hours' notice of the
                                                                  this state, and for every new primary housing
suspension of the license . Matters involving
                                                                  :unit.t sold by any person who induces a resident
suspensions and revocations brought before the
                                                                  of the state to enter into the transaction by
department shall be heard and decided upon by
                                                                  personal solicitation in this state or by mail or
the office of" the commissioner of
                                                                  telephone solicitation directed to the particular
transportation .
                                                                  customer in thiss state . The warranty shall
    (e)' The licensor may inspect the pertinent
                                                                  contain the following terms:
books, records, letters and contracts of a li-
                                                                      (a) That the primary housing unit meets
censee : The actual cost of each such examina-
                                                                   those standards prescribed by law or adminis-
tion shall be,paid by such licensee so examined
within 30 days after demand therefor by the                        trative rule of'the department of industry, labor'
licensoc, and the lcensor may `maintain an                         and human relations, which are in effect at the
action for the recovery of such costs in any                      time of`its manufacture..
court of competent jurisdiction :                                     (b) That the primary housing unit is free from
   History: 1971 c 239;'19'13 c 116; 1977 c 29 ss . 13'73,        defects in material and workmanship and is
1654 (7) (a), (e); 1981 c 45; 1981 c 347 s 80 (2) ; 1983 a 192„   reasonably fit for human habitation if it re-
                                                                  ceives reasonablee care and maintenance as de-
218. 12 Mobile home dealer salesmen regu -                        fined, by rule of the department of industry,
lated. (1) No person shall engage in the business                 labor and human relations..
of selling mobile homes to the ultimate con-                          (c) i :. That the primary housing unit manu-
sumei or to the, retail market in this state                      facturer and dealer shall take corrective action
without a license therefor from the department..                  for defects which become evident within one
If a mobile home dealer acts as a mobile home                     year from the delivery date and as to which, the
                        Electronically scanned images of the published statutes.
 218.14 AU TO DEALERS-F I NANCE COMPANIE S                                                           3760

  primary housing unit owner has given notice to        218 . 15 Sale or lea se of used primary hous -
  the manufacturer or dealer not later than one         ing ' units . In the sale or lease of any used
  y ea r and 10 d ays after the delivery date and at    primary housing unit, the sales invoice or lease
  the address set forth in the warranty ; and that      agreement shall contain the point of manufac-
  the primary housing unit manufacturer and             ture of the used primary housing unit, the name
  de aler shall make the appropriate adjustments        of the manufacturer and the name and address
  and repair s, within 30 days after notification of    ofthe previous owner .
  the defect , at the site of the primary housing         History: 19'73 c 116 ; 1973 c 132 s 5 .
  unit without charge to the primary housing unit
  owner ' If the dealer makes the adjustment , the      218 . 16 Departmental rules . . The department
 manufacturer shall fully reimburse the dealer.         of industry, labor and humann relations shall
     2 If a repair, replacement, substitution or        promulgate rules and establish standards neces-
 alteration is made under the warranty and it is        sary to carry out the purposes of'ss 21814 and
 dis covered , befo r e or after expiration of the      218 15 :
 warr a nt y period, that the repair, replacement,        Hi story : . 19'73 c . 116
 substitution or alteration has not restored the
 primary housing unit to the condition in which         218 . 165 Jurisdiction and venue over out - of-
 it was warranted except for reasonable wear            state manufacturers . (1) The importation of a
 and tear, such failure shall be deemed a viola-        primary housing unit for sale in this state by an
 tion ofthe warranty and the primary housing            out-of-state manufacturer is deemed an irrevo-
unit shall be restored to the condition in which        cable appointment by such out-of-state manu-
it was warranted to be at the time of the sale          facturer ofthe secretary of state to be his true
except for reasonable wear and tear, at no cost         and lawful attorney upon whom may be served
to the purchaser or his assignee notwithstand-
        e                                               all legal processes in anyy action or proceeding
ing that the addi tional repair may occur after         againstt such manufacturer arising out of the
the expiration ofthe warranty period .                 importation of such primary housing unit into
                                                        this state .
     (d) That if during any period of time after
notification of a defect , the primary housing             (2) The secretary of state upon whom pro-
unit' is uninhabitable , as defined by rule of the     cesses and notices may be served under this
department of industry , labor and human rela-         section shall, upon being served with such pro-
tions , that period of time shall not be considered    cess or notice, mail a copyy by registered mail to
part of the one-year' warranty period .                the out-of-state manufacturer at the nonresi-
                                                       dent address given in the papers so served The
     (e) A list of all parts and equipment not
                                                       original shall be returned with proper certificate
covered by the warranty.
                                                       of'service attached for filing in court as proof of
   (2) Action by a lessee to enforce his rights        service . The service fee shall be $4 for each
under this subchapter shall not be grounds for         defendant so served The secretary of state shall
termination of the rental agreement .                  keep a record of all such processes and notices,
    (3) The warranty required under this section       which record shall show the day and hour of
 shall apply to the manufacturer of " . the primary    service . . .
 housing unit as well as to the dealer who sells or      Histor y: 1973 c 116 ; 1973 c. 132 s 5,
 leases the primary housing unit to the customer,
 and shall be in addition to any other rights and      218. 17 Penalt ies . (1 ) Any person who violates
 privileges which the customer may have under          ss . 21$ .14 to 218 ..16, or any rule promulgated
 any instrument or law , ; The waiver of any           under ss . 218 14 to 218 .16, may be fined not
 remedies under any lawand the waiver , exclu-         more than $1,000 or imprisoned for not more
 sion modification or limitation of any war-           than 6 months,' or both
ranty, express or implied, including the implied          (2) In any court action brought by the depart-
warranty of merchantability and fitness for a          ment ofindustry, labor and human relations for
part i cular purpose,, is expressly prohibited .       violations of this subchapter, the department
Any such waiver is unenforceable and void . .          may recover- all costs of testing: and investiga-
   (4) The transfer of a primary housing unit          tion, in addition to costs otherwise recoverable,
from one owner or lessee to another during the         if it prevails in the action,
effective period of t he war r anty does not termi-       (3) Nothing in this subchapter prohibitsthe
nate the warranty, and subsequent owners or            bringing ;of'a civil action against a mobile home
lessees shall be entitled to the full protection of    manufacturer, dealer or salesperson by an ag-
the warranty f 'or, the duration of the warranty       grieved customer If' judgment is tendered for
period as if the original owner or lessee : had not    the customer based on an act or omission by the
transferred the primary housing unit .                 manufacturer, dealer or salesperson, which
  History: 1973 c 716 ; 1973 c 132 s 5; 1973 c 336     constituted a violation of this subchapter, the
                     Electronically scanned images of the published statutes.

3761                                                         AUTO DEALERS-FINANCE COMPANIES 218 .21

plaintiff shall recover actual and proper ' attor-                        riess, all of which may be considered by the
ne y' s fees in addition to costs otherwise                               department in determining the fitness of the
recoverable .                                                             applicant to engage in business as set forth in
   History:    1973 c 116 .                                               this section .
                                                                             (1m) The department may not require infor-
                   SUBCHAPTER VII                                         mation r elating to the applicant's solvency or
                                                                          financial standing if the applicant provides a
 MOTOR VEHICLE SALVAGE DEALERS                                            bond' in the amount provided in sub . (4) and
                                                                          under conditions specified in s . 218,01 ( 2) (h) .
218.20 Motor vehicle salvage dealers to be                                   (2) Application for a motor vehicle salvage
l icensed . (1 ) No person may purchase' and                              dealer 's license shall be made upon the form
resell motor vehicles for wrecking, : processing,                         prescribed by the department and shall contain :
scrapping, recycling, or dismantling purposes
and no person may carry on or conduct the                                    (a) The name under which the applicant is
business of wrecking, processing, scrapping,                              transacting business within the state .
recycling, or dismantling any motor vehicle or                               (b) The place or places where the business is
selling parts thereof' unless licensed to do so by                        to be conducted, which must be an established
the department. Any person violating=this                                 place of business .
section may be fined not less than $25 nor more                              (c) Ifthe applicant is a sole-proprietorship,
than $200 or imprisoned not more than 60 days                             the personal name and address of' the applicant .,
or both                                                                      (d) If the applicant is a partnership, the name
    (2) This section shall not apply to :                                 and address of each partner . .
   (a) Motor vehicle dealers licensed under s . .                                                t
                                                                             (e) If the applicant is a corporation, the
218 .01 (2) who remove, but do not sell, as such,                         names and addresses of its princip a l office rs .
parts of motor vehicles prior to sale of such                                (f) Such other pertinent information as may
vehicles to motor vehicle salvage dealers or                              be required by the department for the purpose
scrap metal processors .                                                  of 'determining the eligibility of the applicant to
   (b) `Scrap metal processors and portable                               be licensed ,.
scrap metal crushers who accept motor vehicles                               (3) Every application shall be executed by the
from only :                                                               applicant, if an individual, or in the event the
   1 . . Licensed motor vehicle dealers ;                                 applicant is a partnership or corporation, by a
 .'2, Licensed motor- vehicle salvage dealers ; or                        partner or officer thereof '. . Every such applica-
   3 . Municipalities, all of whom shall submit                           tion shall be accompanied by the fee required by
titles and reports to the department and retain                           law.
records                                                                      (4) Unless the applicant furnishes a bond, or
   (c) Any person who acquires a motor vehicle                            other adequate collateral as security , of not less
for salvage purposes for his or her own use and                           than $25,000 under conditions provided by s ..
then sells the remainder to a motor vehicle
                                                                          218. 01(2) (h) , every application shall be accom-
salvage dealer or to another person who will                              panied by acurrent financial statement to deter-
further- use that motor vehicle for salvage pur-                          mine the applicant's solvency as required under-
poses for his or her own use before selling it to a
                                                                          sub,. (1) .
motor vehicle salvage dealer .
                                                                             (5) When a motor vehicle' salv age dealer has
   (d) Collectors of special interest vehicles who
                                                                          an established place : of" business in more than
purchase or sell parts cars in compliance with s .
                                                                          one municipality in this state , he or she shall
341 . .266 .
  History: 1 971 c . 4 0; 1975 c : 288 ; 197'7 c . 29 s 1654 ('7) (a) ;
                                                                          make separate application and submit a sepa-
1977 c. 415                                                               rate license fee remitt a nce for each such munici-
                                                                          pality A motor vehicle salvage dealer who fails
218 . 21 Application for salvage dealer 's li-                            to apply for, each such separate license may be
cense (1) Application for license shall be made                           required to forfeit not more than $200 .. .
to the department, at such time, in such form                                (6) A bond may be required under conditions
and contain: such information as the depart-                              as provided by s . 218,01 (2) ( h) .
ment requires and shall be accompanied by the                                (7) Any person who knowingly makes a false
required fee . Except as provided in sub . (lm),                          statement in an application for a motor vehicle
the department may require in the application,                            salvage dealer license may be fined not more
or otherwise, information relating to the appli-                          than $5,000 oc imprisoned not more than 5
cant's solvency, financial standing or other per-                         years or both ..
tinent-matter commensurate with the safe-                                    History : 19'75 c . 288; 1977 c . 29 s. . 1654 (7) (a) ; 1977 c .
guarding of the public interest in the locality in                        272, 415, 447; -. 1979 c . 32 ..
which the applicant proposes to engage in busi-                              See note to 19 ..21, citing 66 Atty .. Gen . .302 ._
                       Electronically scanned images of the published statutes.
 21 8 . 2 2 AUTO DEALERS-F INANCE COMPAN IES                                                                3762

 218 .22 When department to license salvage                  (i) Fraudulent misrepresentation ; circumven-
 dealer s. (1 ) The department shall issue a license      tion or concealment through whatsoever sub-
 to the applicant for a motor vehicle salvage             terfuge or device of'any of the material particu-
 dealer's license upon the receipt of a properly          lars or the nature thereof required hereunder to
 completed application form accompanied by a              be stated or furnished to the retail buyer .
 fee of $75, upon being satisfied that the appli-            (j) Employment of fraudulent devices, meth-
 cant is financially solvent or that the applicant        ods or practices in connection with compliance
 has furnished a bond, or other adequate collat-          with the statutes with respect to the retaking of
 eral as security, of not lesss than $25,000 under        goods under retail instalment contracts and the
 conditions provided by s : 218 .01 (2) (h), and of       redemption and resale of such goods . .
 good character and :                                        (k) . Having indulged in any unconscionable
    (a) If' the application is for renewal of an          practice relating to said business ..
 existing license, upon being satisfied that the             (1) Having charged interest in excess of 16 per
 applicant has complied with and will comply              cent per year .
 with this subchapter;                                       (m) Having sold a retail instalmentt contract
  `'(b) If'the application is for an original license,    to a sales finance company not licensed under s .
 upon being satisfied that :
                                                         21801 (n) Having violated any law relating to the
    I The applicant will comply with this .-      sub
 chapter
 ; and                                                   sale ; distribution or financing of salvaged parts .
                                                            (o) Failure to comply with this subchapter,
    2 . The proposed site or operation will comply          (4) PRO CE DURE IN DENIAL , S USPENSION OR
 with all laws, the rules promulgated by the              xEVOCnriorr; (a)-,The licensor may without no-
 department and the locally applicable zoning or          tice denyy the application for a license within 60
 permit requirements, before beginning opera-             days after receipt thereofby written notice to
 tions, including all laws, rules and local require-      the applicant,- stating the grounds for such
ments.alteady enacted as promulgated as of'the           denial . Within 30 days after such notice, the
:date of application and scheduled to take effect        applicant may petition the office of the commis-
at a later date . .                                       sioner of transportation to conduct a hearing to
   (2) A motor vehicle salvage dealer's license          review the denial, and a hearing shall, be sched-
entitles the licensee to carry on and conduct the         uled with reasonable promptness
business of a motor vehicle salvage dealer dur-              (b) No license shall be suspended or revoked
ing the calendar year in which the license is            exceptt after a hearing thereon . The licensor
issued .. Such license expires on December 31 of         shall give the licensee at least 5 days' notice of
the calendar year for which it was issued and            the time andd place of such hearing . The order
may be renewedd upon application therefor and            suspending or revoking such license shall not be
upon paymentt of the annual license fee of $75 .         effective until after 10 days' written, notice
   (2m) License fees collected under this sub-           thereof' to the licensee, after such heaing has
chapter shall be deposited in the transportation         been had ; except that the licensor; when in its
fund                                                     opinion ; the best interest of the public' or the
   (3) The department may deny, suspend or               trade demands it, may suspendd a license upon
revoke a license on any of the following                 not less than 24 hours' notice of hearing and
grounds :                                                with not less than 24 hours' notice of the
   (a) Proof of unfitness . .                            suspension of the license : Matters involving
   (b) Material misstatement in application for          suspensions and revocations brought before the
license                                                  department shall be heard and decided upon by
                                                         the office of the commissioner of
   (c) Filing a materially false or fraudulent
                                                         transportation .
income tax return as certified by the department
of revenue;                                                 (c) The licensor may inspect the pertinent
                                                         books, records, letters and contracts of a li-
   (d) Wilful failure to comply with any provi-
                                                         censee . The actual cost of each such examina-
sion of this section or any rule promulgated by          tion shall be paid by such licensee so examined
the department under this section .
                                                         within 30 days : after demand therefor by the
   (e) Wilfully defrauding any retail buyer to the       licensor, and the licensor may maintain an
buyer's damage                                           action for -the recovery of such costs, in any
   (f) Wilful failure to perform any written             court of competent jurisdiction . .
agreement with any retail buyer .                           (5) No salvage dealer licensed under ss .
   (g) Failure or refusal to furnish and keep in         218,20 to 218,23 shall be licensed as a dealer
force any bond required ..                               under, s . 218 .:01 (2) at his salvage dealer location,
   (h) Having made a fraudulent sale, transac-           provided that nothing herein shall prohibit li-
tion or repossession .                                   censing and transacting of both businesses at
                      Electronically scanned images of the published statutes.
 3763                                                       AUTO DEALERS-FINANCE COMPANIES 21 8.3 2

 the same location where the salvage operations                          218 . 25. Rules . The department shall make
 arephysically separated .                                               ruless under ch . 227 and establish the standards
     History: 1975 c 288 ; 1977 c 29 ss, 1373m, 1374, 1 654 (7)          necessary to carry out the purposes of this
 (a), (e) ; 1977 c . 415; 1979 c 110 s 60 (13) ; 1981 c 347 s. 80 (2);   subchapter and to provide for the orderly oper-
 1983 a 192 .
                                                                         ation of motor vehicle salvage sites .
                                                                            History: 1975 c 288 ; 1977 c 29 s 165 4 (7) (a) .
218 .23 Licensee to maintain records ; sale of
vehicles by licensee . (1) Wheneverr a licensed                          218 . 26 Transition provision . The department
motor vehicle salvage dealer acquires a motor                            shall not deny, suspend or revoke the license of
vehicle for the purpose of'wrecking it, the dealer                       a motor vehicle salvage dealer for violation of
shall mail or deliver the certificate of title or if                     any rule promulgated by the department which
the transfer to the salvage dealer wass by a bill of                     requires the fencing of'existing salvage dealers'
sale, the bill of sale, for such vehicle to the                          operations or requires the upgrading of or
department within 30 days after the vehicle is                           higher standards for salvage dealer s' operations
delivered to the salvage yard unless the previous                        prior to January 1, 1.979, if', as of July 1, 1975,
owner already has done so If he or she subse-                            such salvage dealer was the holder of a valid
quently wishes to transfer such vehicle to an-                           license issued under this subchapter .
other pet-son, he or she shall make such transfer                          Hi story : 1975 c 288 ; 1977 c 29 s 1654 (7) (a)
only by 6i11_ of sale . In such bill of sale, he or she
shall describe the vehicle and shall state that the                                      SUBCHAPTER VIII
certificate of title for the vehicle has been mailed
or delivered to the department because the                                MOTOR VEHICLE AUCTION DEALERS
vehicle was to have been junked .
   (2 ) Every licensed motor vehicle salvage                             218 . 30 Motor vehicle auction dealers to be
dealer shall maintain a record of every vehicle                          licensed . No person shall carry on or conduct
which is bought or otherwise acquired and                                the business of auctioning motor vehicles at
wrecked by the salvage dealer, which record                              wholesale unless licensed to do so by the depart-
shall state the name and address of the person                           ment Any person violating this section maybe
from whom such vehicle was acquired and the                              fined not less than $25 nor more than $200 or
date thereof'. The record shall be in the form                           imprisoned not more than 60 days, or both .
                                                                           History : 19 71 c 40; 1977 c . 29 s 1654 (7) (a),
prescribed by the department .
   (3) Any person violating this section may be                          218 .31 Application for auction dealer ' s li -
fined not less than $25 nor more than $200 or
                                                                         cen se . ( 1) Application for a motor vehicle
imprisoned not more than 60 days or both . .
                                                                         auction dealer's license shall be made upon the
   History : 19'71 c. 164 s 83 ; 19'75 c 288 ; 1977 a 29 s, 1654         form prescribed by the department and shall
(7) (a) ; 19 7 7 c 273
                                                                         contain :
218 . 24 Salvage dealer license number dis -                                (a) The name and address of the applicant
 played on trucks and truck-tractors. (1) Each                              (b) When the applicant is a partnership, the
motor vehicle salvage dealer licensed under this                         name and address of each partner .
subchapter shall prominently display his or her                             (c) When the applicant is a corporation, the
salvagee dealer license number on both sides of                          names of" the principal officers of the corpora-
each truck or truck-tractor owned by such                                tion and the name of the state in which
dealer andd operated for hauling, towing or                              incorporated ;
pushing salvage vehicles                                                    (d) The place or places where the business is
                                                                         to be conducted and the nature of the business ..
   ( 2) The letters "DMV SAL" shall be placed
                                                                            (e) Such other pertinent information as may
directly ahead of the assigned license certificate
                                                                         be required by the department for' the purpose
number:. .
                                                                         of determining the eligibility of the applicant to
   (3 ) The markings required by thiss section                           be licensed .
shall be not lesss than 2 inches in height and not                          (2 ) Every application shall be executed by the
less than one-fourth inch brush stroke, and in                           applicant, if' an individual, or in the event the
sharp color contrast to the background on                                applicant is a partnership or corporation, by a
which it is applied Such identification shall be                         partner or officer thereof . Every such applica-
maintained in such manner as to remain legible                           tion shall be accompanied by the fee required by
while the vehicle is in operation .                                      law.,'
   ( 4) Any person violating this section may be                           History : 1977 c 29 s . 1654 (7) (a)
fined not less than. $25 nor more than $200 or
imprisoned not more than 60 days or both ..                              218 .32 : When department to license auction
  Histor y: 1975 c 288 .                                                 dealer . (1) The department shall issue a license
                      Electronically scanned images of the published statutes.
  218 .32 AUTO' DEALERS-FINANCE COMPANIES                                                                         3764

 certificate to the applicant for a motor vehicle        cant, stating the grounds for such denial .
 auction dealer's license: upon receipt of a prop-       Within 30 days after such notice, the applicant
 erly completed application form accompanied             may petition the office of the commissioner of
 by a fee of $50 and upon being satisfied that the       transportation to conduct a hearing to review
 applicant is of' good character and that , so farces    the denial, and a hearing shall be scheduled with
 can be ascertained, the applicant has complied          reasonable promptness .
 with and will comply with the laws of ' this state         (b) No license shall be suspended or revoked
 with reference to ss . 21 '8 . 30 to 218 .' 33 .        except after a hearing thereon . The licensor
    (2) A motor vehicle auction dealer's license         shall give the licensee at least 5 days' notice of
 entitles the licensee to carry on and conduct the       the time and place of such hearing The order
 business of a motor ° vehicle auction dealer dur-       suspending or revoking such license shall not be
 ing the calendar year in which the license is          effective until after 10 days' written notice
 issued . Such license expires on December 31 of        thereof' to the licensee, after such hearing has
 the calendar year for which it was issued and          been had; except that the licensor, when in its
 may be renewed upon application therefor and           opinion the best interest of the public or the
 upon payment of the annual license fee of $50 .        trade demands it, may suspend a license upon
    (3) The department may deny, suspend or             not less than 24 hours' notice of hearing and
 revoke a license on the following grounds :            with not less than 24 hours' notice of the
    (a) Proof of unfitness . .                          suspension of the license ., Matters involving
    (b) Material misstatement in application for        suspensions and revocations broughtt before the
 license .                                              department shall be heard and decided upon by
    (c) Filing a materially false or fraudulent         the of'f'ice of` the commissioner of
 income tax return as cextifiedby the department        transportation,
 of revenue.                                                (e) The licensor may inspect the pertinent
    (d) , Wilful failure to comply with any provi-      books, records, letters and contracts of a li-
                                 y
 sion of this section or any rule promulgated by        censee . The actual cost of each such examina-
 the department under this section .                    tion shall be paid by such licensee so examined
                                                        within 30 days after demand therefor by the
   (e) Wilfully defrauding any retail buyer , to the
buyer's damage . .                                      licensor ; and the licensor may maintain an
                                                        action for the recovery of' such costs in any
   (f) Wilful failure to perform any written
                                                        court of competent juii5diction .
agreement with any retail buyer . .
                                                           Histo ry: 1977 c. 29 ss . 1375, 1654 (7) (a), (e); 1977 c 273;
   (g) Failure or refusal to furnish and keep in
                           o                            1979 c 110 s . . 60 (13); .1981 c 347 s 80 (2) ; 1983 a 192'..
force any bond required .
   (h) Having made a f r audulent sale, transac-         218 .33 Motor vehicle auction dealer to be
tion or repossession .                                   bonded ; conduct of auction business. (1) Each
   (i) Fraudulent misrepresentation, circumven-         licensee under s . 218 32 shall furnish and main-
tion or concealment through whatsoever sub-              tain a corporate surety bond in the amount of
terfugeoc device of' any of the material particu-       $25,000 in such form as the department ap-
lars or the nature thereof required hereunder to        proves, conditioned upon the licensee's comply-
be stated or furnished to the retail buyer ,            ing with the laws applicable to the licensee and
   (j) Employment-:of' fraudulent devices, meth-        as indemnity for- anyy loss sustained by any
ods or practices in, connection, with compliance        person by reasonn of acts of the licensee consti-
with the statutes with respect to the retaking of       tuting grounds for refusal or revocation of'the
goods under retail instalment contracts and the         auction dealer's license . : The bond shall run to
redemption and resale of such goods . . .               the state of Wisconsin forr the benefit of ag-
   (k) Having indulged in any unconscionable            grieved parties but the aggregate liability of the
practice relating to, said business                     surety for- all such parties shall not exceed the
   (1) Having charged interest in excess of 15 per-     amount of said bond . .
cent per year .                                            (2) The following rules shall govern the
   (m) Having sold a retail instalment contract         conduct of motor vehicle auction sales :
to a sales finance company not licensed   t             " (a) Sales of motor, vehicles shall be confined
hexeunder.                                              to those offered by licensed motor vehicle deal-
   (n) Having violated any law relating to the          ers and shall be `sold only to licensed motor
sale , distribution or financing of ' motor vehicles,   vehicle dealers ..'
   (o) Failure to comply with ss 218 .. .30 to             (b) Every motor vehicle offered for sale shall
218 , . .3 .3 „                                         be sold with the understanding that a clear title
   (4) (a) The licensor may without notice deny         will be furnished, or in lieu of such an agree-
the application for a license within 60 days after      ment, the obtaining of title insurance on each
receipt thereof by written notice to the appli-         motor vehicle sold . A dealer's reassignment
                    Electronically scanned images of the published statutes.

3765                                                     AUTO DEALERS-F I NANCE COMPAN IES 2 1 8 .41

form shall be filed on each motor vehicle sold at                 (3) A license may be denied , suspended or
the auction .                                                   revoked on any of the following grounds :
  (c) Pay ment for motor vehicles bought and                      (a) Proof' of unfitness of applicant
sold shall be made immediately after sale :                        (b) Material misstatement in applic a tion for
  (3) Any person violating this section may be                  license .
fined not less than $25 nor more than $200 or                      (c) Filing a materially false or fraudulent
imprisoned not more than 60 days , or both                      income tax return as certified by the department
  History :   1977 c . 29 s 1654 (7) (a); 1977 c 273 .          of revenue
                                                                   (d) Wilful failure to comply with any provi-
                  SUBCHAPTER IX                                 sion of" this section or any rule or regulation
                                                                promulgated by the department under this
                 MOPED DEALERS
                                                                section .
                                                                  (e) Wilfully defrauding any ret a il buyer to the
218 . 40 Definitions. In this subchapter :                      buyer ' s damage . .
  (1) "Department" means the department of                         (f) Wilful failure to perform an y written
transportation                                                  agreement with any retail buyer . .
    (2) "Moped" has the meaning designated in                      (4) The department may without notice den y
s . 340 .01 (29m) .                                             the application for a license within 30 da ys after
   (3) "Moped dealer" means any person, firm                    receipt thereof' by wri t ten notice to the appli-
or corporation, who is engaged wholly or in                     cant, stating the grounds for such denial Upon
part in thee business of selling mopeds .. Pro-                 request by the applicant whose license ha s been
vided, however, that a person, firm or corpora-                 so denied , the office of the commissioner of
tion who is also a motorr vehicle dealer under s .              transportation shall set the time and place of
218 .01 shall be governed and regulated by the                  hearing a review of such denial, the s ame to be
provisions of s . 218 .01 and not this section ..               heard with reasonable promptness .
  Histor y : 1977 c. 288 ; 198 1 c 20 .
                                                                   (5) (a) No license may be suspended or
218 . 41 Moped dealers regulated . (1) No per-                  revoked except after a hearing thereon .
son may engage in the business of selling                          (b) Except as provided in par (c) , the office
mopeds in this state without a license therefor                 of the commissioner of transportation shall give
as provided in this section ..                                  the licensee at least 5 days' notice of the time
   (2) (a) Application for license shall be made                and place of the hearing .. The order suspending
to the department at such time and in such                      or revoking the license shall not be effective
form, and containing such information, as the                   until after 10 days ' written notice thereof to the
department requires .                                           licensee , after the hearing has been had . .
   (b) The application shall be accompanied by                     (c) When the department finds th a t the best
the required fee, which shall not exceed $50 .                  interest of ' the public or the trade demands s uch
   (c) The department may require in such ap-                   action , the department may suspend a license
plication, or otherwise, information relating to                upon not less than 24 hours' notice of hearing
the applicant'ss solvency, financial standing or                and with not less than 24 hours' notice of the
other pertinent matter, commensurate with the                   suspension of the license .
safeguarding of the pub l ic interest in the locality              (6) The department may inspect the perti-
in which the applicant proposes to engage in                    nent books , records , letters and contracts of 'a
business, all of which may be considered by the                 licensee . The actual cost of each such examina-
department in determining the fitness of the                    tion shall be paid by the licensee so examined
applicant to engage in business as set forth in                 within 30 days after demand therefor by the
this section .                                                  department, and the department may maintain
   (d) All licenses shall be granted or refused                 an action for the recovery of the costs in any
within 30 days after application therefor, and                  court of competent jurisdiction
shall expire, unless sooner revoked or sus-                        (7) If a licensee is a firm or corporation , it
pended, on December 31 of the calendar year                     shall be sufficient cause for the denial , suspen-
for which they are granted .                                    sion or revocation of a license that any officer,
   (e) Each license shall specify the location of               director or trustee of the firm or corporation, or
the office or branch for which it is issued and                 any member in case of a partnership , has been
must be available for inspection there . In case                guilty of any act or omission which would be
such location is changed ;, the department shall                cause for refusing, suspending or revoking a
endorse the change of location on the license                   license to the party as an individual.. Each
without charge if' it is within the same munici-                licensee shall be responsible fbr the acts of any
pality . A change of license to another munici-                 or all salespersons while acting as the licensee ' s
pality shall require a new license .e                           agent, if ' the licensee approved of or had knowl-
                     Electronically scanned images of the published statutes.
218 .41 AUTO DEALERS-FINANCE COMPANIES                                                        3766

edge of the acts or other similar acts and after 218 .43 Penalty. Any person violating s .
such approval or knowledge retained the bene- 21841 or a lawful rule or order issued there-
fit, proceeds, profits or advantages accruing under shall, upon conviction, be subject to a
from the acts or otherwise ratified the acts .s fine of nott less than $25 and not more than
   (8) Any department or other person in inter-    .$ 1 00 . . . _
est being dissatisfied with an order of the office -, (1) The department may cancel the license of
of the commissioner of transportation may the convicted licensee .e
                       as provided
have a review thereof' 1981 c 347ins ch . 22'7 .. (2) The license issued to any convicted
                    ;                  80 (2)
  Hi story: 1977 c 288    .    .    .
                                                  licensee shall be surrendered to any police of=
218. 42 Examination by department . No li- ficer upon direction of the department without
censee is subject to examination or audit by the any refund of the fees paid .
department under this subchapter other than as  (3) Any license canceled under this section
provided in s . 218 41 (6) . may not be renewed for 12 months . _
  His tory : 1977 c 288                        History: 1 977 c 288 .

								
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