Electronically scanned images of the published statutes. 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) . Electronically scanned images of the published statutes. 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 Electronically scanned images of the published statutes. 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- Electronically scanned images of the published statutes. 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 Electronically scanned images of the published statutes. 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.. Electronically scanned images of the published statutes. 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 ; Electronically scanned images of the published statutes. 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 . Electronically scanned images of the published statutes. 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 . . Electronically scanned images of the published statutes. 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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