CHAPTER 218docs.legis.wisconsin.gov/document/statutes/1983/218.pdfCHAPTER 218 FINANCE COMPANIES, ... 21824 Salvage dealerl icense number displayed on trucks and truck-tractors

218.01 AUTO DEALERS-FI NANCE COMPANIES 3736

CHAPTER 218

FINANCE COMPANIES, AUTO DEALERS , ADJUSTMENT COMPANIES ANDCOLLECTION AGENCIES

SUBCHAPTER IMOTOR VEHICLE DEALERS; SALESMEN; SALES

FINANCE COMPANIES21801 Motor v e h icle dealers; salesm e n ; sales fina n ce com-

pa nies, lic e n ses; fe es; regulations ; co erci on;subsidies,; penalti es,

218 . 015 Repair, repl acem e nt a nd refund under new motorv ehic le wa r ra nties .

SUBCHAPT ER IiADJUSTMENT SERVICE COMPANIES

21 8 02 Adjus tment ser vice compa nie s .SUBCHAPTER III

COLLECTION AGENCIES21804 Collection agencies .

+ SUBCHAPTER IVCOMMUNITY CURRENCY EXCHANGES

21805 Communi ty curre nc y exchange sSUBCHAPTER VI

MOBILE HOME DEALERS21 8 . 10 Defi nition s21 8 .11 Mob ile home de al ers regula ted218 , 12 Mobile home de al er salesmen reg ula te d

. 21 8 . }4 Warranty and d isclos u re.218 15 S ale or l eas e of used pri mary hous ing un i t s.21 8 . 1 6 Department al rule s218 165 Jurisdictio n and venue o ver out-of-state

manufacturers ,

SUBCHAPTER I

MOTOR VEHICLE DEALERS ;SALESMEN; SALES FINANCE

COMPANIES

218.01 Motor vehicle dealers ; salesmen ;sales finance companies, licenses; fees ; reg -ulations ; coercion ; subsidies ; penalties. (1)DEFINITIONS In this section, unlesss the contextothe rwise r equires, the fol lowing words andterms shall have the following meanings,

(a) "Agreement" means contract or franch iseor any other terminology used to describe thecontractual relationship between manufactu-exs, distributors, importers and dealers,

(b) "Cash price" means the retail sel ler'sprice in dolla r s fox the sale of the goods, and thetransfer of unqualified title thereto, upon pay-ment of such price in cash or the equivalentthereof'..

(c) The term "commissioner" means thecommissioner of banking and any duly autho-tized deputy namedd or appointed by such com-missioner to perform any function in the admin-istration or enforcement of'th is section .. ,

(d) "Department" means the department oftransportation .

(e) "Distributor" or "wholesaler" means aperson,. resident or nonresident who in whole orpart, sells or distributes motor vehicles to motorvehicle; dealers, or who maintains distributorrepresentatives .

(f) "Distributor branch" means a branchoffice similarly maintained by a distributor orwholesaler for the same purposes

(g) "Distributor representative" means axep-resentative similarly employed by a distributor ,distributor branch or wholesaler ,

(h) "Factory branch" means a branch officemaintained by ' a person who manufactures orassembles motor vehicles, for the sale of motorvehicles to distributors , or for the sale of ' motorvehicles to motor vehicle dealers or for directingor, supervising in whole - or part, itsrepresentatives,

(i) "Factory representative" means a repre-sentative employed by a person who manufac-tures or assembles motor vehicles or by a fac-tory branch, for the pu rpose of making orpromoting the sale of its motor vehicles, or forsupervising or contacting its dealers or prospec-tive dealers . .

(j) "Finance charge" has the meaning setforth in s 421 301 (20) .

218 . 1 7 P e nalti esSUBCHAPTER VII

MOTOR VEHICLE SALVAGE DEALERS'21 820 . Motor vehicle salv age deal ers t o be licensed218 21 Application fo r salva ge de aler's licens e21 8 22 When departmen t t o licen se salvage dealers218 23 Lice n see to m a intain records ; sale o f vehicles by

licensee,2 18 24 Salvage d ealer l icen se number d isplayed on trucks

and truck-tractors21 8 . 25 Rules..2,1826 Tran si t i on pro visi on .

SUBCHAPTER VIIIMOTOR VEHICLE AUCTION DEALERS

21 8 30 Motor vehicle auction deale rs to be licen sed218 , 31 Applicati on fo r auctio n deale r's l icen se218:32 When , dep artment t o license auctio n de aler .21 8 33 'Motor vehicle auction dealer to be bonded ; con-

duct of auction bu sinessSUBCHAPTER IXMOPED DEALERS . :

21 8.40 Defini tion s .21841 Moped de alers regulated21 8, 42 ' Examination by department.218,43 Penalty .

Electronically scanned images of the published statutes.

3737 AUTO DEALERS-=F INANCE COMPANIES 218.01

(k) "Licensor " means the body, either thecommissioner or the department or both, issu-ing a license hereunder .

(1) "Manufactures" means any person, resi-dent or nonresident who manufactures or as-sembles motor vehicles or' who manufactures orinstalls on previously assembled truck chassis,special bodies or equipment which when in-stalled form an integral part of ' the motor vehi-cle and which constitutes a major manufactur-ing alteration and which completed unit isowned by such manufacturer

(m) "Motor vehicle" means any motordriven or trailer type vehicle required to beregistered - under ch . 341 except mopeds, semi-trailers or trailers designed for use in combina-tion with truck or truck tractor , and except thatmobile home dealers and, salespersons andmoped dealers and salespersons are not re-quired to be l icensed under s 218 01 (2) (d) 1and 5 .

(n) "Motorr vehi cle dealer" means any per-son , firm or corporation, not excluded by par . .(o) who :

1 . For commission, money or other thing ofvalue , sells, exchanges, buys, rents withh theoption of pu r chase , offers or attempts to negoti-ate a sale or exchange of an interest in motorvehicles ; or,

2 Is engaged wholly or in part in the businessof selling motor vehicles, includingmotorcycles whether or not such motor vehi-cles are owned by such person, firm orcorporation :

(o) The term "motor vehicle dealer" does notinclude :

1 . Receivers, trustees, administrators, execu-tors, guardians or other persons appointed byor acting ùnder the judgment ox order of anycourt ; or

2 : Public officers while performing their- offi-cial duties ; or

3 . Employes of persons, corporations or as-sociations enumerated in subds , I and 2 , whenengaged in the specific performance of theirduties as such employer .

4 . Sales finance companies or other loanagencies who sell or offer for sale motor vehiclesrepossessed or- foreclosed by them under termsof an instalment contract, or, motor vehiclestaken' in trade on such repossessions .

(p) "Motor vehicle salesman" means salesrepresentative , sales manager, general manageror other person who is employed by a motor-vehicle ' dealer- for the purpose of selling orapproving retail sales of motor vehicles . Anymotor vehiclee salesman licensed heieunder shallbe licensed to sell only for one dealer at a time ..

(q) "Person" means a person, firm, corpora-tion or association .

(r) "Relevant market area" means all of thearea within a 10-mile radius of the site of ane xi sti ng enfr anchi sed motor vehicl e deal e rshipor the area of sales responsibility assigned to theexisting enfranchised dealersh i p by the manu-facturer,factoxy branch or distributor , which-ever is greater .

(s) "Retail buyer" means a person, firm orcorporation, other than a motor vehicle manu-facturer, distributor or dealer, buying or agree-ing to buy one or more motor vehicles from amoto r vehicle dealer .

(t) "Retail instalment contract" or "instal-ment contract" means and includes every con-tract to sell one or, more moto r vehicl es a t r et ail,in which the price thereof is payable in one ormore instalments over a period of time and inwhich the seller has either retained titlee to thegoods or has taken or- retained a security inter-est in the goods under a form of contractdesignated either as a conditional sale , chattelmortgage or otherwise.

(u) "Retail seller" means a person , firm orcorporation selling or agreeing to sell one ormore motor - vehicles under a retail instalmentcontract to a buyer for, the Tatter's personal useor consumption thereof '.

(v) "Sales finance company " means and i n-cludes anyy person, firm or corporation engag-ing in the business, in whole or in part, ofacquiring by purchase or by loan on the securitythereof, ; or otherwi se, retail in stalment con -tiacts from retail sellers in this state, includingany motor vehicle dealer whoo sells any motorvehicle on an instalment contract or acquiresany retail instalment contracts in his retail saleso#' motor vehicles .

(w) "Secretary" means the secretary oftransportation . .

(18) AUIHORIIY OF DEPARTMENT AND COM-MISSIONER, The department shall issue the li-censes provided for in sub . . . (2) (d) 1 to 6 andhave supervision over the licensees thereunderin respect to all the provisions of this section,except only as to such matters as relate to thesale of motorvehicles on retail instalment con-tracts and the financing and servicing of suchcontracts, over, which ratter th e commissionershall have jurisdiction and control, and thecommiss ioner shall issue the licenses t o sa lesfinance companies . Either licensor hereundershall, upon request, furnish the other , licensorwith any information it may have in respe ct toany licensee or applicant for license or anytransaction in which such licensee or applicantmay be a party or be interested . . No license shallbe issued under' sub. (2) (d) 1 and 8 until bothlicensors have approved the application .. Thesuspension or revocation of either of such li-censes shall automatically likewise suspend or


21 8.01 AUTO DEALERS-F INANCE COMPANIES 3738

less than $25 , 000 under conditions specified inpar . (h) ..

(be) Except as provided in this subsectionevery dealer and distributor of ' new motor vehi-cles, otherthan mopeds or motor bicycles , shall ,at the time of application for a license , file withthe department a certified copy of the appli-cant's written agreement and a certificate ofappointment as dealer or distributor , respec-tively The certificate of appointment shall besigned by an authorized agent of the manufac-turer of domestic vehicles on directmanufactures-dealer agreements ; or, where themanufacturer is wholesaling through an ap-pointed distributorship, by an authorized agentof the distributor on indirect distributor-dealeragreements . . The certificate shall be signed byan authorized agent of the importer on directimporter-dealer agreements of 'foreign- madevehicles; or by an authorized agent of the dis-tributor on indirect dist r ibutor-dealer agree-ments The distributor's certificate of appoint-ment shall be signed by an authorized agent ofthe manufacturer ; or by an agent of the manu-facturer or importer of foreign manufacturedvehicles.

(bd) 1 A dealer or distr i butor need not file awritten agreement if the manufacturer ' on directdealerships or distributor on indirect dealer-ships or importer on direct dealerships utilizesthe identical basic agreement for all its dealersor distributors in Wisconsin and certifies in thecertificate of appointment that such blanketagreement is on file and such written agreementwith such dealer or distributor, respectively , isidentical with the filed blanket agreement, andhas filed with the department one such agree-ment together with a list of authorized dealersor distributors . Such manufacturer , distributoror ' importer shall notify the department imme-diately of the appointment of any additionaldealer s o r di stributors, of any revisions of oradditions to the basic agreement on file , or ofanyy individual dealer or distributor supple-ments to such agreement . Such manufacturer,distributor or importer shall notify the dealer ordistributor and forward a copy of such notice tothe departmentt of the discontinuation or can-cellation of the agreement of any of its dealersor distributors at least 60 days before the effec-t ve dat e ther eof ' together with the specificgroundss for discontinuation or cancellation ofthe agreement, if' discontinued or canceled ,.Agreements and certificates of appointment aredeemed to be continuing unless the manufac-tuxer, distributor or importer has notified thedepartment of ' the discontinuation or cancella-tion of the agreement of anyy of its dealers ordistributors , and annual renewall of certifica-

revoke the other license ; and such suspension orrevocation shall be certified by the licensorordering it to the other licensor .

(l b) LICENSES FOR DEALERS, DISTRIBUTORS,MANUFACTURERS OR TRANSPORTERS OF SEMI-TRAILERS AND TRAILERS, Subject to ch 180where applicable , any dealer, distributor , man-ufacturer or transporter of' semitrailers or trail-ers designed for use in combination with a truckor truck tractor is deemed licensed under thissection where for purposes ` of' chs . 341 and 342license under this section is required , Thissubsection is enacted to remove an undue bur-den on int erstate commerce : fr om a cl ass ofcommercial transactions in which the businesscharacter of the parties does not require theprotection provided by this section and to pro-mote the expansion of credit for truck operatorswho requiree banking and , financing facilitiesthroughout the United States .

(2) LICENSES, HOW ' GRANTED ; AGREEMENTS,FILING . (a) No motor vehicle dealer, motorvehicle salesman or sales finance company shallengage in business as such in this state without alicense therefor as provided in this section . . Ifany motor vehicle dealer acts as a moto r vehiclesalesman he shall secure a motor vehicle sales-man's license in addition to a license :for motorvehicle dealer : Every motor vehicle dealer shallbe responsible for the licensing of` every motorvehicle salesman in his employ.

(am) No manufacturer of motor vehicles , orfactory branch, or' distributor' OT' distributor'branch shall engage in bu sine ss as such in thi sstate without a license therefor as provided inthis section :

(an) No factory representative or distributorrepresentative shall engage in business as suchin this state without a license therefor as pro-vided in thi s sec tion

(b) Application f'or, license shall be made tothe licensor, at such time, in such form andcontain such information as the licensor shallrequire and shall be accompanied by thee re-quired fee. Except as provided in par . (bb), thelicensor may require in such application, orotherwise, information relating to the appli-cant's solvency , his financial standing or other'pertinent matter commensurate with the safe-guarding of the public interest in the locality inwhich said applicant proposes to engage inbusiness, all of ' which may be considered by saidlicensor in determining the fitness of' said appli-cant to engagee in business as set forth in thissection .

(bb) The licensor may not require informa-tion relatingg to the solvency or financial stand-ing of an applicant for a motor vehicle dealerlicense if the applicant provides a bond of not


AUTO DEALERS-FINANCE COMPANIES 218.013739

tation has rendered a decision permitting theissuance of the license .

(d) The license fee fox each calendar year, orpart thereof', shall be:

1 . For motor vehicle deale is, $20 for eachoffi ce or branch thereof, plus $1 for a supple-mental license for each used motor vehicle lotwithin the same municipality, but not immedi-ately adjacent to the office or to a branch .

2 . For motor vehicle manufacturers, $20; andfor each factory branch in this state, $20 .

3 .. For distributors or' wholesalers, the sameas for dealers .

4 . Any person licensed under subd . 2 or, 3next preceding, may also operate as a motorvehicle dealer, without any additional fee . .

5 For motor vehicle salesmen, $4 .6 . . For factor y representative , or distr ibutor

branch representative, $47 . . For sales finance companies on the basis of

the gross volume of purchases of retail : salescontracts of motor vehicles sold in this state forthe 12 months immediately preceding October31 of the year inwhich the application or licenseis made, as follows : On a gross volume of$25,000 or less, $25 ; on a gross volume of over$25,000 and not over $100 ,000 , $50; on each$100 ,000 over $100,000 and up to $500 , 000, anadditional . $15; and on each $100,000 over '$500,000, an additional $10 . No extra chargeshall be made for branch licenses for salesfinance companies.. Gross volume shall bebased ., on the unpaid balance of the retailcont r acts

8 . For motor vehicle dealers, which operateas a sales finance company, and carr yor retaintime sales contracts for more than 30 days , thesame as sales finance companies, except for thefirst $10,000 of gross volume, $10 ; and on each$1,000 of gross volume, or partt thereof, over$10,000 and up to $25,000, $1 ..

(e) The licenses.s of dealers, manufacturers ,factory. ; branches, distributors, distributorbranches and sales finance companies shallspecify the location of the office or branch andmust be conspicuously displayed there . In casesuch location be changed, the licensor shallindorse the change of location on the licensewithout charge if it be within the samee munici-palit y . A change of location:to another munici-pality, shalll require a new , license , except forsales finance companies

(f) Everyy salesman, factory representative or,distributor representative shall carry his licensewhen engaged in his business, and display thesame upon request.. The license shall name hisemployer, and in case . of leaving an employer,the salesman shall immediately surrender ' hislicense to his employer who shall mail thelicense to the licensor . If du r ing the license year

tions filed as provided in this subsection is notnecessary .

2 . Any dealer or distributor discontinued orcanceled may within such 60-day notice period,file with the department and office of the com-missioner of transportation and serve upon therespondent a complaint for a determination ofunfair discontinuation or cancellation , under'sub ; (3) (a) 17 Allowing opportunity for ananswer, the office of the commissioner of' trans-portation shall thereafter schedule a hearing onand decide the matter Agreements and certifi-cates of appointment shall continuee in effectuntil final determination of ' the issues raised insuch complaint. If the complainant prevails heor she shall have a cause . of action against thedefendant for reasonable expenses and attor-ney's fees incurred by him or her in such matter..

3 . No manufacturers', distributors' or im-porters' vehicles shall be sold in this state unlessseither the manufacturer on direct dealerships ofdomestic vehicles, the importer of foreign man-ufactured vehicles an direct dealerships or thedistributor on indirect dealerships of either- do-mestic ox foreign vehicless are licensed under s .218 . 01 : The obtaining of a license under s .218 .. 011 shall conclusively establishh that suchmanufacturer, distributor-orimporter is doingbusiness in this state and shall subject the li-censee to all provisions of the Wisconsin stat-utes regulating manufacturers, importers anddistributors ,

(be) Any manufacturer on direct dealershipsor distributor on indirect dealersh ips or- im-porter on direct dealerships who has filed withthe department an agreement used by all itsdealers or distributors in this state together w itha list of all such dealers or distributors who failsto notify the department of any revisions ,changes oradditions when and as required bypar (bd) may be fined not more than $200 orimprisoned not more than 6 months or both: .

(c) 1 , Except as provided in subd . 2, alllicenses shall be granted or refused within 60days after application therefor , and shall expire,unless sooner revoked or suspended, on Decem-ber 31 of the calendar- year :for which they aregranted

2 . a . In cases where a complaint of unfaircancellation of a dealerr agreement is in theprocess of ' being heard., no replacement applica-tion fox the agreement may be considered untila decision is rendered by the office of the

:commissioner of transportation :b . In cases where a complaint has been filed

under sub , (3) (f) protesting the proposed estab-lishment or relocation of a dealership in arelevantt market area , no license may be issueduntil the office of the commissioner of ' transpor-


21 8.01 AUTO DEALERS-FINANCE COMPANIES 3740

such individual again is employed or acts as asalesman he shall make application for reissueof a salesman's license . There shall be no fee inconnection with such subsequent applications .

(g) Every sales finance company shall berequired to procure a salesman's license foritself '' or its employer in order to sell motorvehicles : repossessed by it.

(h) Provided the licensor has reasonablecause to doubt the financial responsibility or' thecompliance by the applicantt or licensee withthis section the licensor may require the appli-cant or licensee to furnish and maintain a bondin t he form, amount .t and with the sureties itapproves , but not less than $5 ,000 , not morethan $15,000, conditioned upon the applicantor licensee complying with the statutes applica-ble to the licensee and as indemnity for any losssustained by any person by reason of any acts ofthe licensee constituting grounds for suspensionor revocation of the license under ' this section .The bonds shall be executed in the name of ' thisstate - for the benefit of any aggrievedd parties;provided that the aggregate liability of thesurety to all such parties shall, in no event ,exceed the amount of the bond . The abovebonding requirements shall not apply to manu-facturers, factory branches, and theiragents,

(i) Application for dealers' licenses shall besubmitted to the department in duplicate and,except for- information relating to the appli-cant's solvency or financial standing as pro-vided in par . (bb), shall contain such informa-tion as the licensors require . Application forsales finance company licenses shall conta insuch information as the commissioner requites . .No motor vehicle dealer or sales finance com-pany, unless so licensed ; shall be permitted toregister or receive or use registration platesunder ss . .341 . . 47 to 341 .. 57 . .' The departmentshall transmit the duplicate copy of each appli-cation for a dealer s license to the commissionerwith $1 for each application fee to cover the feerequired under par : (d) 8 .. and the commissionershall issue a sales finance company license to thedealer if no prior sales finance company licensehas been suspended or revoked, and if ' theapplicant meets the requ irements of this sectionr elating to sales finance companies . .

(j) Unless a dealer furnishes a bond of' not lessthan $25,000 under conditions provided bypans (bb) and (h), every motor; vehicle dealerlicensed ' in accordance with the provisions ofthis section shall make reports to the licensor atsuch intervals and showing such information asthe licensor may require, The licensor may notrequire information relating to the solvency orfinancial standing of a dealer , if the dealer keepsthe bond in force,'

(k) After the receipt of an application in dueform, properly verified and certified , and uponthe payment of the $5 examination fee , it is theduty of'the secretary, or the deputy secretary orany salaried employe of the department desig-nated by the said secr e tary , within a reasonabletime and in a placee reasonably accessible to theapplicant for a license, to subject each first-timeapplicant for license and if the secretary deemsnecessary , any applicant for renewal of license ,to a personal written examination as to compe-tency to act as a motor vehicle salesman . . Whenit is shown from such application and examina-tion that the applicant : 1 . intends in good faithto act as a motor vehicl e sal esman; 2 . i s of goo dreputation; 3 . has had experience or training in,of is otherwise qualified for selling motor vehi-cles ; 4 : is a res ident of' this state (unless applica-tion is for a nonresident motor vehicle sales-man's license) ; 5 . is reasonably familiar with themotor vehicle sales laws or contracts the appli-cant is proposing to solicit , negotiate or effect;and 6 .. is worthy of a license, the said secretaryshall issue to the applicant a license to transactbusiness in this state . as a resident or nonresi-dent motor vehicle salesman .,

` (2a) CHANGES ' IN PLACES OF BUSINESS TO BEREPORTED . (a) Before changing the location of aplace of` business or opening a new place ofbusiness in a municipality in which authorizedto do business, a licensed dealer -, distributor, ormanufacturer shall apply to the department foran amended license . The department shall issuesuch license without charge .

(b) Whenever a licensed dealer, distributor',manufacture r or transporter opens a new placeof` business, the licensee shall promptly reportsuch fact, including the address thereof, to thedepartment

(c) Whenever a licensed dealer, distributor ormanufacturer, discontinues or disposes of his orher business, such person shall promptly reportsuch fact to the department and return thelicense ' and registration plates issued . . When-ever a licensed dealer, distributor ox manufac-turer discontinue s business due to licens e sus-pension or revocation, such person shallsurrender the licenses and registration plates tothe department for such suspension or revoca-tion period .

(d) Any dealer, distributor, manufacturer ortransporter who fails to comply with the re-quirements of`this subsection may be fined notmore than $200 or imprisoned not more than 6months o f both :.

(3) LICENSES, HOW DENIED, SUSPENDED OR

REvoKED . (a) A license may be denied, sus-pended or revoked on the following grounds :

I Proof of unfitness..


374 1 AUTO DEALERS-FINANCE COMPANIES 218.01

2 Material misstatement in application forlicense

3 . Filing a materially false or fraudulentincome tax return as certified by the departmentof revenue ,

4 . Wilful failure to comply with any provi-sionn of this section or any rule or regulationpromulgated by the licensor under this section.,,

5 Wilfully defrauding any retail buyer to thebuyer's damage :

6 : Wilful fa ilure to perform any writtenagreement with any retail buyer .

7 Failure or refusal to furnish and keep inforce any bond required

8 . Having made a fraudulent sale , transac-tion or repossession

9 Fraudulent misrepresentation , circumven-tion or concealment through whatsoever sub-terfuge of device of any of the material particu-lars or the naturee thereof required hereunder tobe stated or furnished to the retail buyer

10 Employment of' f'raudulentdevices, meth-ods or practices in connection with compliancewith the statutes with respect to the retaking ofgoods under retail instalment contracts and theredemption and resale of such goods :

11 . Having indulged in any unconscionablepractice relating to said business

12 . Having charged a finance charge imexcessof the rate permitted by s . 422 . 201 (3

)13, Having sold a retail instalment contractto a sales finance company not licensedhereunder

14 Having violated any law relating to t hesale, distribution or financing of motor vehicles ,

15 . Being a manufacturer of motor vehicles,factory branch, distributor , field representative,officer, agent or any representative whatsoeverof such motor vehicle manufacturer or factorybranch , ., who has induced of coerced or at-tempted to induce or coerce any motor vehicledealer to accept deli very of any motor vehicle orvehicles , parts or accessories therefor, or anyother',commodities which shall not have beenordered by said dealer .

16 :- Being a manufactu r er of motor vehicles,factory branch, distributor , field representative ,officer, agent or , any rep r esentative whatsoeverof such motor, vehicle manufacturer or factorybranch, who has attempted to induce or coerce,or has induced of coerced , any motor vehicledealer to enter into any agteeinent withh suchmanufacturer; factory branch or representativethereof; or to do anyy other act unfair to saiddealer , by threatening to cancel : any franchiseexisting between such manufacturer , factorybranch ' or rep resentative _ thereof and saiddealer-,

17 ; Being a manufacturer, factory branch,distributor , field representative, officer-, agent

or any representative whatsoever of such motorvehicle manufacturer or factory branch, whohas unfairly, without due regard to the equitiesof said dealer and without just provocation,canceled or failed to renew the franchise of anymotor vehicle dealer ; or being a manufacturer,factory branch or importer , who unfairly, with-outt due regard to the equities of a distributorandd without , just provocation canceled or failedto renew the franchise of any distributor , Allexisting dealers' fr anchises shall continue in fullforce and operationn under a newly appointeddistributor on the terminationn of an existingdistributor unless a mutual agreement of can-cellation is filed with the department betweenthe newly appointed distributor and suchdealer ,

18. . Having accepted an order of purchase ofa contract from a buyer if . such arrangementresults in the practice of bushing .. For thepurpose of this section, "bushing" means thepractice of increasing the selling price of amotor vehicle above that originallyy quoted thepurchaser as evidenced by a purchase order orcontract which has been signed by both thepurchaser and dealer licensee .

19 . Having advertised, printed , displayed ,published, distributed , broadcast or televised orcaused or permitted to be advertised, printed ,displayed, published;, distributed, broadcast ortelevised in any manner whatsoever , any state-ment or representation with regard to the saleor financing of motor vehicles which is false,deceptive or misleading .

20 . Having set up, promoted or aided in thepromotion of a plan by which motor' vehiclesare sold to a person for- a consideration andupon the further consideration that the pur-chaser agrees to secure one or more persons topa r ticipate in the plan by respectively making asimilar pu rchase and in turn agreeing to secureone or more persons likewise to join in saidplan , eachh purchaser being given the right tosecure money, credits, goods or someth ing: ofvalue, depending upon the number of personsjoining in the plan ,

21 ; Being a dealer who keeps open his placeof ' business on Sunday for the purpose of ' buyingor selling motor vehicles ; ' but nothing in thissubdivision shall apply to any person who con-scientiously believes that the 7th , day of theweek, "from-sunset F riday to sunset Saturday,should be observed as the Sabbath and whoactually refrains from conducting or engagingin the business of buying, selling ors offering forsale motor vehicles, or performing other secularbusiness on that day..

22 Being a manufacturer, factory branch ordistributor who for- the protection of ' the buyingpublic fails to specify the delivery and prepara-


2 1 8 .01 AUTO DEALERS-FINANCE COMPANIES 3742

tion obligation s o f its dea lers prior to deliveryof new motor vehicles to retail buyers . A copyo f ; the delivery andd preparation obligati ons ofits. dealers shall be filed with the department byevery licensed motorr vehicle manufacturer, fac-tory branch or distributor and shall constitutethe dealer' s only responsibilit y for p roduct lia-bility as between the dealer and the manufac-ture, factory branch or distributor Anymechanical, body o r parts defec ts arisi n g fromany express or implied warranties of ' the manu-facturer- or importer shall constitute the manu-facturer' s or importer's product or warrantyliability,. The manufacturer, factory branch ordistributor shall reasonably compensate anyauthorized dealer' who performs work to rectif ythe manufacturer's or importer's product orwarranty defects or delivery and preparationobligation s A manufacturer , factory branch ordistributor shall pay the dealer who performswork to rectify the manufacturer's or importer'sproduct or warranty defects at a labor r ateequal to the effective labor rate charged allcustomers .

2.3' Being a manufacturer, factory branch ordistributo r who unreasonably withholds itss ap-pioval of 'a changee of ownership or executivemanagement of a dealership .

24. Being a manufacturer , factory branch ordistributor who unreasonably closes a dealerpoint.

25 . Having violated chs 421 to 427 .26. Being a manufacturer , factory branch,

distributor, field representative, off'icer ', agentor ' any repre sentative of such manufacturer,factory branch or distributor who, notwith-standing the terms of any agreement, refuses tohonor the succession to the ownership or opera-tion of 'a dealership under, an existing franchiseagreement 'by ' a designated family member of adeceased or incapacitated dealer ; except in themanner prescribed by sub.. (3c), or who unrea-sonably withholds its approval of a change ofownership or executive management of thedealership after the dealer's death or incapacity ..

26m, Being a manufacturer factory branchor distributor who unreasonably refuses to al-low a dealership to share its facilities withanother or who unreasonably refuses to allow adealership to add another franchise at the samelocation as its existing franchise or franchises .

27 . The selling of new motor vehicles for- which the dealer is not franchised .

28 ' Wilful failure to provide and maintainfacilities and business records as requi red bythis section or by any rule promulgated by thelicensor pertaining to facility and businessrecords .

29 . Being an inactive business, as evidencedby 3 or less motor vehicle purchases and salesduring the prior- year licensing period

30 Failure to obtain proper business zoningor failure to obtain and maintain any requiredadditional state or local licensee or permit ..

31 . Having violated an order issued underpar . (h) .

32 . Being a manufacturer, factory branch ordistributor who enters into a franchise agree-ment establishing or relocating a motor vehicledealership in a relevant market area withoutfirst complying with the procedure in par . (f) 1 .

(b) The licensor may without notice deny theapplication f 'or' .aa license within 60 days afterreceipt thereof' by written notice to the appli-cant, stating the grounds for such denial ,.Within 30 days after such notice, theapplicantmay petition the office of the commissioner oftransportation to conduct a hearing to reviewthe denial, and a hearing shall be scheduled withreasonable promptness .

(bf) 1 . The department shall not license as adealer an applicant for the sale of motor vehi-cles at retail: unless such applicant owns orleases a vehicle displayy lot and a permanentbuilding wherein there are facilities to displayautomobiles and motorcycles and facilities torepair functional and nonfunctional parts ofmotor , vehicles and wheree replacement parts ,repair tools and equipment to service motorvehicles axe kept, and at which place of businessshall be kept and maintained the books, recordsand files necessary to conduct the business .. Aresidence , tent or, temporary stand is not asufficiently permanent place of business withinthe meaning of this paragraph . .

2 . An approved service contract with anestablished repair shop having the repair pactsand repair facilities specified in subd . 1 shallserve in lieu of' the applicant's owning or leasinghis own repair facilities if such service connec-tion is within a reasonable distance from theapplicant's place of business and if ' such serviceconnection guarantees in writing the making ofthe repairs or replacements ordered by thedealer

3 . This paragraph does not apply to personswho deal only in mopeds or motor bicycles ,.

(c) No license may be suspended or revokedexcept after- a hearing thereon .. The licensorshall give the licenseee at least 5 days' notice ofthe time and place of such hearing . The ordersuspending or revoking such license shall not beeffective until after 10 days' written noticethereof' to the licensee, after such hearing hasbeen had; except that the licensor , when in itsopinion the best interest of the public oc thetrade demands it, may suspend a license uponnot less than 24 hours' notice of hear ing and


3743 ' AUTO DEALERS-FINANCE COMPANIES 218.01

with not less than 24 hours' notice of thesuspension of the license . Matters involvingsuspensions or revocations brought before thedepartment shall be heard and decided upon bythe office of the commissioner oftransportation

(d) The licensor may inspect the pertinentbook s,, recor ds, l etters and contracts o f a li -censee. The actual cost of each such examina-tion shall be paid: by such licensee so examinedwithin 30 days after demand ., therefor by thelicensor, and the licensor may maintain anaction for the recover y of such costs in anycourt of ' compeYent ,jurisdiction

(e) If' a licensee is a firm or corporation , itshall be sufficient cause for the denial, suspen-sion or revocation ofia license that any officer,director or trustee of ' the firm or corporation , orany member in case of ' a partnership, has beennguilty of any act or omissionn which would because for refusing, suspending or revoking alicense to such party as an individual .. Eachlicensee, shall be responsible for the acts of anyor all of his salesmen while acting as his agent , ifs uch li cense e approved of or had know l edge ofsaid acts of other similar acts and after suchapproval or knowledge retained the benefit ,proceeds, profits or advantages accruing fromsaid acts or otherwise ratified said acts .

(f) 1 : A manufacturer, facto ry branch ordistributor who seeks to enter into a franchiseagreement establishing or relocating a motorvehicle dealership within the relevant marketarea of an existing enfr anchised dealer of theline make of motor vehicle shall first notify inwriting the department and each such existingenfranchised dealer of its intention to establishor relocate a dealership . Within 30 days ofrecei ving the notice or within 30 days a ft e r th eend of any appeal procedure provided by themanufacturer, factory branch or: distributor,whichever is later , any existing enf'ranchised 'dealer of the same line - make: to whom themanufacturer,, factory branch or distributor isrequired to give ' notice under thiss subdivisionmay file with the department and the office ofthe commissioner of transportation a complaintprotesting the proposed establishment or relo-cation of the dealership within the relevantmarket area of the existing enfranchised dealer-,If ''a complaint is filed , the department shallinform the manufacturer, factory branch ordistributor that a timely complaint has :beennfiled , that a hearing is required, and that theproposed f ranchise agreement may not be en-tered into until the off ice of the commissioner oftransportation has held a hearing, nor there-after, if ' the office of' the commissioner of trans-portation determines that there is good causefor not permitting the proposed establishment

or relocation of the dealership . In the event ofmultiple complaints, hearings shall be consoli-dated to expedite the di sposition of the issue.

2 In determining whether good cause existsfor not permitting . the proposed establishmentor relocation of 'a dealership, the office of thecommissioner of transportation shall take intoconsideration the existing circumstances , in-cluding, but not limited to :

a . The amount of business transacted byexisting enfranchised dealers of ' the line make ofmotor'- vehicle when compared with the amountof' business available to themm

b The permanency of the investment neces-sarily made and the obligations incurred byexisting enfranchised dealers in the perform-ance of theirr f r anchise agreements .,

c . The effect on the retail motor vehiclebusiness in the relevant market area . .

d . Whether it is injurious to the public wel-far;e for the proposed dealership to be estab-li sh ed or relocated

e Whether the establishment or relocation ofthe proposed dealership would increase compe-tition and therefore be in the public interest .

f'. Whether the existing enfr anchised dealersof the line make of motor vehicle are providingadequate consumer care for the motor' vehiclesof that line make , including the adequacyy ofmotor vehicle service facilities, equipment, sup-ply of parts and qualified personnel l

g . Whether ' the existing enf r anchised dealersof the line make of motor vehicle are receivingvehicles and parts in quantities promised by themanufacturer, factory branch or distributor,and on which promised quantities existing en-franchised dealers based their investment andscope of operations .

h . The effect the denial of'such establishmentor relocation would have on the license .e appli-cant or dealer who is seeking to establish orrelocate-a deale rship

3 . The decision of the office of the commis-sioner of transportation shall be in writing andshall contain findings of fact and a determina-tion of whether there is goodcause for notpermitting the proposed es tabli shment or relo-cation of the d e al ership . The office o f thecommissioner of transportation shall delivercopies of the decision to the parties personallyoc by registered mail . The decision is final uponits delivery or, mailing and no reconsideration or 'rehearing by the office of the commissioner oftransportation is permitted ..

4. For purposes of this paragraph :a The reopening of 'a dealership, which has

been closed for- less than 2 years , at the originallocation is not the establishment or relocationof a motor vehicle dealership . . The reopening of'a dealership at a location other than the original


218 .01 ; AUTO DEALERS-FINANCE COMPANIES 3744

stay is ordered by the judge of the court towhich the appeal is taken .

(3c) FAMILY MEMBER 'S RIGHT TO SUCCEEDDECEASE D OR INCAPACITATED DEALER UNDER EX-ISTING FRANCHISE AGREEMENT (a) The term"designated family member", as used in thissubsection and in sub . (3) (a) 26, means thespouse, child, grandchild, parent, brother orsister of'adealer who, in the case of 'a deceaseddealer, is entitled to inherit the dealer's owner-ship interest in the dealership under the terms ofthe dealer's will or under the laws of intestatesuccession of this state, or who, in the case of anincapacitated dealer, has been appointed by acourt as the legal representative of the dealer'sproperty The term "designated family mem-bet" shall also mean and include the duly ap-pointed and qualified personal representativeand the testamentary trustee of a deceaseddealer .

(b) Any designated family member of a de-ceased or incapacitated dealershall have theright to succeed such dealer in the ownership oroperation of the dealership under the existingfranchise agreement provided the designatedfamily member gives the manufacturer, factorybranch or distributor written notice of his or herintention to do so within 120 dayss of the dealer'sdeath or incapacity and unless there exists goodcause for refusal to honor such succession onthe part of the manufacturer, factory branch ordistributor, The manufacturer, factory branchor distributor may request, and the designatedfamily member shall provide, such personal andfinancial data as is reasonably necessary todetermine` whether the succession should behonored . .

(c) If' a manufacturer-, factory branch ordistributor believess it has good cause for refus-ing to honor the successionn to the ownershipand operation of a dealership by a family mem-ber of a deceased or incapacitated dealer underthe existing franchise agreement, such manufac-turer, factory branch or distributor may, within30 days of receipt of` notice of the designatedfamily member's intent to succeed the dealer inthe ownership-and operation of the dealership,serve upon such designated family member andthe departmentnotice of'its refusal #o honor thesuccession and of-its intent to discontinue theexisting franchise agreement with the dealershipno sooner than 60 days: from the date suchnotice is served. :- Such notice shall state thespecific grounds ;for the refusal to honorr thesuccession and the discontinuance of' . thefranchise agreement, If no notice of-such re-fusal and discontinuance is timely served uponthe family member and department, or, if theofficee of the commissioner of transportationrules in favor of the complainant in a hearing

location is the establishment or relocation of 'amotor vehicle dealership if the new location iswithin 6 miles, by the closest highway route, ofanother enfranchised dealer of the samee linemake and is closer to such dealer than thereopening dealer's closed dealership .p

b. The. relocation of an enfranchised dealer-ship to a -location within the existing area ofsales responsibility assigned to that en-franchised dealership by the manufacturer, fac-tory branch or distributor is not the relocationof a dealership ; unless the relocation site iswithin 6 miles, by the closest highway route, ofthe location of another enfranchised dealer ofthe same line make and is closer to such dealerthan the relocating dealer's existing location

(g) Any person in interest aggrieved by adecision of the office of the commissioner oftransportation mayy have a review thereof' asprovided in ch, 227 or aggrieved by an order ofthe commissioner may have a review thereof asprovided ins 220 . .0 .37 .

(h) In addition to the licensor's authority todeny, suspend or revoke a license under thissection, the commissioner, after public hearing,may issue a special order enjoining any licenseefrom engaging in any act or practice which isdetermined by the commissioner to be in viola-tion;of any provision of par . (a), and the officeof the commissioner of transportation may bepetitioned to issue such a special order afternotice . and hearing thereon

(3a) WHEN DEPARTMENT TO REVOKE LICENSEOF DEALER, DISTRIBUTOR, MANUFACTURER, ORTRANSPORTER . (a) If a dealer, distributor ormanufacturer is convicted under s . .341 55 (1) asecond ox subsequent time within the sameregistration year, the departmentt shall revokethe license of such dealer, distributor or manu-faeturer for a period not to exceed one yearFor .the purposes of this paragraph, the convic-tion of the employe of a dealer, distributor ormanufacturer shall be countedd as a convictionof the employer

(b) If' a transporter is, convicted under s .341 .55 (3) a second or subsequent time withinthe same license ; year, the department shall:revoke thee license of such transporter for aperiod not to exceed one year

(c) ; A dealer, distcibufor, manufacturer ortransporter, whose : . license has been revokedshall forthwith surrender its registration platesto a traffic officer or peace officer designated bythe department. A dealer, distributor, manu-f"acturex or transporter: who fails.s to, return theplates as required by this subsection may befined not more than $200 or imprisonedd notmore than.6 months or both .

(d) The appeal of a conviction does notsuspend the act: or order of'revocationn unless a


AUTO DEALERS-FINANCE COMPANIES 218.01 .3745

of motor vehicles , but may not limit the price atwhich licensees may sell, assign or transferreceivables, contracts or other evidence of anyobligation arising outt of an instalmentt salemade under this section .

(b) The commissioner and office of the com-missione r of transportation shall have thepower in hearings and trials arising under thischapter to determine the place, in the state ofWisconsin, where they shall be held ; to sub-poena witnes ses ; t o take depositi on s, of wit-nesses residing without the state, in the mannerprovided for in civil actions in courts of record ;to pay such witnesses the fees and mileage for'their attendance as is provided for witnesses incivil action s in court s of record ; and to adminis-ter oaths .

(c) Thee licensor may.y make such rules andregulations as it shall deem necessary or properfor the effective administration and enforce-ment of this section, but no licensee shall besubject to examination or audit by the licensorexcept as provided in sub . . (3) (d) .

(5m) CONTRACT , PROVISIONS (a) No contractfor the sale of a motor vehicle shall contain aclause which, upon nonacceptance of the vehi-cle by the buyer, would subject the buyer to apenalty greater than 5 per cent of the cash priceof the vehicle .

(6) INSTALMENT SALES . (a) Every retail instal-ment sale shall be evidenced by an instrument inwriting, which shall contain all the agreementsof the parties and shall be signed by the buyer .

(b) Prior to or concurrent with any instal-ment sale, the seller shall deliver to the buyer awritten statement describing clearly the motorvehicl e sold to the buyer, the cash sale price , thecash paid down by the buyer, the amountcredited the buyer' for anyy trade-in and adescription of' the trade-in, thee cost to the retailbuyer, of any insurance , the amount financedwhichh may include the cost of insurance, salesand use taxes, the amount of the finance charge,the amount of any other charge specifying itspurpose, the total of" payments due from thebuyer, the terms of the payment of " such total,the amount and. date of,. each payment necessaryfinally to pay the total and a summary of anyinsurance coverage to be effected . The commis-sioner may determine the form of ' the statement ..If a written order is taken from a prospectivepurchaser in connection with any instalmentsale, the written statement shall be given to thepurchase r prior to or concurrent with the sign-ing of the order by the purchaser . The financecharge in a retail instalment sale made prior toApril 6, 1980, however' computed, excluding thecost of insurance shall not exceed the amountcomputed on the basis of the following annualpercentage rates:

held under par .. (d), the franchise agreementtshall continue in effect subject to terminationonly in the manner prescribed in thissubchapter.

(d) Any designated family member who re-cei ves a notice of the manufactu re r's, factorybranch' s or distributor ' s refusal to honor hi s orher succession to the ownership and operationof the dealership may within the 60-day noticeperiod , serve on the respondent and file intriplicate with the office of the commissioner oftranspartation a verified complaint for a hear-ing and . .d determinationn by the office of thecommissioner of transportation on whethergood cause exists fOr such refusal and discontin-uance. The office of the commissioner , of trans-portation shall forward a copy of the complaintto the department.. The- manuf'actucex, factorybranch or dis t ributor shall have the burden ofestablishing good cause for such refusal byshowing that the succession would be detrimen-tal to the public interest or , to the representationof the manufacturer-,,f 'actory branch or distribu-tor : The franchise agreement shall continue ineffect until the final determination of the issuesraised in such complaint If the complainantprevails he or she shall have a cause of action .against the defendant for ' reasonable expensesand attorney ' s fees incurred in such matter . Ifthe manufac turer , factory branch or distributorprevails, the office of the commissioner of' trans-portation shall include in its order approvingthe termination of' the;f 'ranchise agreement suchconditions as are reasonable and adequate toafford the complainant an opportunity to re-ceive fair and reasonable compensation for, thevalue of " the dealership .

(e) Nothing in this subsection shall prevent adealer, during the dealer' s lifetime , fromdesignating any person as his or ' her successordealer by written instrument filed with the man-ufacturer; factoryy branch or distributor,„

(4) ADVISORY COMMITTEE, The licensor maappoint annually one or more local advisorycommittees and one general advisory commit-tee, each cons istin g of not more than 9 mem-bers .. The committees upon request of thelicensor may advise and assist the IiEensor in theadministration of this section . The members ofsaid committees shall receive no compensationfor their services ar expenses.

(5) RULES AND REGULATIONS . (a) the licensorshall promote the interests of retail buyers ofmotor vehicles relating to default , delinquency,repossession or collection charges and the re-fund of the finance charge and insurance pre-mium on prepayment of the instalment con-xcact . It may define unfair practices in themotor vehicle industry and trade between licen-sees or between any licensees and retail buyers


218.01 AUTO DEALERS-FINANCE COMPANIES 3746

1981 and before November 1 , 1984 , or afterOctober 31, 1987, or the refinancing , renewal,extension or modification on or after- Novem-ber 1, 1981 and before November 1, 1984, orafter October 31, 1987, of any such retail instal-ment sale , excluding the cost of insurance , maynot exceed the maximum rate provided in s .4 22 20 1 (2)(bm)

2 . For any retail instalment sale which is nota consumer transaction as defined in s 421 301(13) and is made on or after November 1 , 1981and before November 1 , 1984, or after October31, 1987, or for any refinancing, renewal , exten-sion or modification on or after November 1,1981 and before November 1 , 1984 , or afterOctober 31 , 1987, of any such retail instalmentsale, the maximum finance charges under pans .(b) and (bm) do not apply .

3 . For any retail instalment sale of ' a mobilehome as defined in s 218 10 (2) made on or afterNovember 1, 1981 and before November 1 ,1984, or after October 31, 1987 , or for anyrefinancing, renewal, extension or modificationon or after November 1 , 1981 and before No-vember 1, 1984, or after October 31 , 1987, ofany such retail instalment sale , the maximumfinance charges under gars . (b) and (bm) do notapply .

(bp) A retail instalment sale made after Octo-ber 31, 1984 and before November 1, 1987 , isnot subject to any maximum finance chargelimit

(c) An exact copy of the instalment salecontract and any note or notes given in connec-tion therewith shall be furnished by the seller tothe buyer at the time the buyer ` signs suchcontract. The buyer's copy of the contract shallcontain the signature of ' the seller identical withthe signature on the original contract . Nocontract shall be signed in blank except that adetailed description of ' the motor vehicle includ-ing the serial number- or other identifying marksof the vehicle sold which are not available at thetime of ` execution of' such contract may be filledin before final delivery of the motor vehicle

(d) A violation of par (a), (b) , (bm) , (bn),(bp) oY (k) bars recovery of any finance chargeby the seller, or an assignee of the seller who , atthe time of the assignment, had knowledge ofthe violation, in any suit upon a sales contractarising from the salee where the violationoccurr ed :

(e) Prior to 30 days after acquisition of anyretail instalment contract from a 'retail seller ,every` finance company shall mail or deliver tothe retail buyer a written notice that it hasacquired the retail instalmeiit contract from theretail seller, and shall also mail or cause to bemailed with the notice a statement of the partic-ulars of the retail instalment contract price

1 . Class 1 : Any new motor vehicle-12 ..75%per year ; except for transactions of 72 monthsor more-11 . .'7% per year .

2 Class 2 : Any used motor vehicle designatedby the manufacturer by a year model of thesame- or 2 years prior to the year in which thesale is made-16 . . 25% per year ; except fortransactions of 72 months or more-14 7% peryear-1 Class 3 : Any used motor vehicle not in

Class 2 and designated by the manufacturer bya year model not more than 4 years prior to theyear in which the sale is made-21 .25% peryear; except for transactions of 72 months ormore-19 .15% per year .,4 . Class 4: Any used motor vehicle not in

Class 2 or Class 3 and designated by the manu-facturer by a year model more than 4 years priorto the year in which the sale is made-23 . .25%per year ; except for transactions of 72 monthsor more-20 . . 75°/d per year

5 Class 5: Any new truck or truck tractorhaving a gross vehicular weight of` 15,000pounds or more - 15 . . 25% per year .

b The maximum' allowable finance chargeshall be computed on the declining principalbalance of`the amount financed as determinedunder par (b) (intro ) at the annual percentagerates provided for in the classes under subds 1to 5 according to the actuarial method as de-fined in s. 421 .301 (1) .

7 . A minimum finance charge of $15 may becharged,on any instalment sales contract inwhich the finance charge, when computed at therates indicated , results in a total charge of lessthan this amount .

8 . In addition to other charges , an instalmentsales contract may include a charge sufficient tocover the fee for filing the termination state-merit required by s 409 404 . .

(bm) The finance charge in a retail instalmentsale made on or after April 6, 1980 and prior toNovember 1 , 1981, or the refinancing, renewal,extension or modification on or after April 6,1980 and prior to November 1, 1981, of anyretail instalment sale, however computed, ex-cluding the cost of" insurance shall not exceedthe amount computed on thee basis of the fol-lowing annual percentage rates :

L Any new motor vehicle, the lesser of i 8%per year or a rate of not more than 4% in excessof the discount rate on '90-dayy commercialpaper in effect 1 S days prior to the date of ' sale atthe federalxeserve bank in the federal reservedistrict where the `seller is located ,

2 Any used motor, vehicle, 18% per year ."' (bn) ' 1 . Except as provided in subd : 3, the

finance charge in a retail instalment sale whichis a consumer transaction as defined ' in s .421301 (13) made on or after November 1,


3747 AUTO DEALERS-FINANCE COM PANIES 218.01

required under par (b) to be stated by the retailseller , in accordance with the finance com-pany's records respecting such particulars , in-cluding the amount of the finance charge .Every finance company, if ' insurance is providedby it, shall a l so within the 30 days send or causeto be sent to the retail buyer a policy of insur-ance clearly setting forth the exact nature of theinsurance coverage and the amount of the pre-miums , each stated separately, whichh shall befiledd with the commissioner of insurance inaccordance with ch 625 The cancellation andrewriting of any such policy shall comply withthe requirements of 's 631 . 69 .

(em) In e vent the dealer shall finance theinstalment sale contract , the commissioner maypermit him to combine the information re-quired by pans (b) and (e) last above in onestatement under such rules andd regulations asthe commissioner may from timee to timeprescribe:

(f) Any retail buyer of a motor vehicle, resi-dent in t he state of Wisconsin, at the time ofpurchase, under a retail instalment contract ,shall have a valid defense in any action orproceeding a t law to enforce said contract byany finance company not licensed heteunder,which has purchased or otherwise acquiredsuch contract, if such finance company haswilfully failed or refused to comply with par . (e) .

(g) Any retail buyer of a motor vehicle ,resident of ' the state of Wisconsin at the time ofpurchase , under a retail instalment contractmade in this state, shall have a valid defenseagainst the recovery of' the principal , financecharge and other fees included in the contract,in any action or proceeding at law to enforce thecontract by any person who has purchased orotherwise acquired the contract , if the personhas failed or refused prior to the purchase oracquisition to be licensed as a sales financecompany under this section, and the person isactually engaged in business , in whole or in partas ' a sales finance company;

(h) All transactions which constitute con-sumer transactions (s . 421 301 (13)) are subjectto :chs . 421 to 427 , in addition : to this section ..

(j) This subsection does not apply to a retailinstalment sale made on or after April 6 , 1980and prior to November , 11, 1981, of a motorvehicle having a gross vehicular weight or agross carrying weight of 15,000 pounds or moreif the motor vehicle into be used primarily for abusiness or commercial purpose , or to anyrefinancing, renewal; extension or modificationon or after ~April 6, 1980 and prior to November1, 1981, of' any retail instalment sale of such amotor vehicle. -

(k) This subsection does not apply to a reta ilinstalment sale of' a motor vehicle made on or

after November 1 , 1981 , if the motor vehicle isto be used primarily for business or commercialpurposes and not for the buyer's personal ,family or household use .

(6m) NOTICE OF INSURANCE TO BUYER UNDERINSTALMENT SALES CONTRACT, Whenever' a per-son sells or agrees to sell any motor vehicle atretail under a retail instalment contract whereinprovision is made` for, insurance coverage , or acharge is made therefor; such policy so issued orprovided for , shall include public liability cover-age protecting the driver of such motor vehicleagainst damages resulting from the negligentuse thereof; or the seller shall , in writing , notifythe buyer at the time of making such contractthat the motor vehicle is not covered by publicliability insurance protecting the driver againstdamages ' resulting from the negligent usethereof '. : The seller shall obtain , on a formseparate from the retai l instalment contract , thesigned acknowledgment of ' the buyer that he orshe has been notified that the contract does ordoes not include such insurance .

(7) PROHIBITED H ers. (a) No manufacturer ofmotor! vehicles, no wholesaler or distributor ofmotor vehicles , and no officer, agent or repre-sentative of either shall induce or coerce , orattempt to induce or coerce, any retail motorvehicle dealer of prospective retail motor vehi-cle dealer in this state : to sell, assign or transferany retail instalment sales contract, obtained bysuch dealer in connection with the sale by him inthis state of motor vehicles manufactured orsold by such manufacturer , wholesaler or dis-txibutox , to a specified sales finance company orclass^ of such companies, or to any other speci-fied person, by any of ' the acts or means herein-after set forth ; namely :

1 . By any statement, suggestion, promise orthreat that such manufacturer , wholesaler ordistributor will in any manner benefit or injuresuch< dealer, whether such statement , sugges-tion, threat or promise is express or implied , ormade directly or indirectly .

2.. By any act that will benefit or injure suchdealer.,

3 . By any contract, or any express or impliedoffer of contract, made directly or indirectl y tosuch dealer, for handling such motor vehicles ,on the condition that such dealer sell , assign ortransfer his retail instalment contract thereon,in this state ; to a specified sales finance com-pany or class of"such companies, or to any otherspecified person .4.' By any express or implied statement or

representation, made directly or indirectly, thatsuch dealer is under any obligation whatsoeverto sell , assign or transfer any of his retail salescontracts, in this state, on motor vehicles manu .factured or sold by such manufacturer, whole-


3748218.01 AUTO DEALERS-FINANCE COMPANIES.

company licensee in this state, and no suchlicensee in this state shall accept or receive orcontract or agree to acceptor receive directly orindirectly any payment or service of value fromany manufacturer, if' the effect of the paymentor giving of any such thing of'service or value bythe manufacturer, or the acceptance or receiptthereof by the sales finance company licensee,may be to lessen or eliminate competition ortendd to grant an unfair trade advantage orcreate a monopoly in the licensee who acceptsor' receives thee payment, thing or service ofvalue or contracts or agrees to accept or receivethe same..

(7a) MOTOR VEHICLES . (a) No motor vehicleshall be offered for sale by any motor vehicledealer or motor vehicle salesman unless theodometer reading thereon is disclosed in writingby the prior owners and such disclosure issubsequently shown to the retail purchaser bythe dealer or salesman prior to sale . Suchdisclosure requirement shall not apply to amotor vehicle with a gross weight rating ofmore than 16,000 pounds or a vehicle 25 ormore years old, or a new vehicle obtained bysuch dealer directly from a manufacturer ordistributor

(b) It shall be unlawful for any motor' vehicledealer or motor vehicle salesman to fail toprovide, upon request of a prospective pur-chaser, the name and address of the prior ownerof any motor vehicle offered for sale.

(7b) PURCHASE OF MOTOR VEHICLE BY MINOR..

No minor shall purchase anyy motor vehicleunless the minor, at the time of purchase, sub-mits to the seller a statement verified before aperson authorized to administer oaths andmade and signed by either parent of the pur-chaser, if' such . parent has custody of the minoror, if neither parent has custody, then by theperson having custody,, setting forth that thepurchaser has consent to purchase the vehicleThe signature on the statement shall not imputeany liability for the purchase price of the motorvehicle to the consenting person The statementshalll not adversely affect .any other arrange-ment for' the assumption of liability for thepurchase price which the consenting_ personmay make . . Thee signed statement shall accom-pany the applicationn for a certificate of title andshall be filed by the department with the appli-cation . Failure to obtain the consent or toforward it with the application for a certificateof title shall not void the contract of sale of amotor vehicle in the hands of an innocentholder, without notice, for' value and in theordinary course of business .. Any person whosells a motor. vehicle to a minor with knowledgeof such fact without procuring such a statement

safer or distributor to such sales finance com-pany , or class of companies, or other specifiedperson , because of any relationship , or , affilia-tion between such manufacturer-, wholesaler ordistributor and such finance company or com-panies or such specified person or persons .

(b) Any such statements, threats , promises ,acts, contracts or offers of contracts, set forth inpar . (a) are declared unfair trade practices andunfair competition and against the policy of thisstate, are unlawful and are prohibited .

(c) No sales finance company, and no officer,agent or representative thereof, shall induce orcoerce or attempt to induce or coerce anyy retailmotor vehicle dealer to transfer to such salesfinance compan y any of the retail instalmentsales contracts in this state of ' such dealer on anymotor vehiclee by any of the following acts ormeans, namely :

1 . By any statement or representation, ex-press or implied, made directly of indirectly,that the manufactuxei , wholesaler or ; distribu-tor , of such motor vehicles will grant such dealera franchise to handle such motor vehicles if suchdealer shall sell, assign or transfer all or part ofsuch retail sales contracts to such sales financecompany,2 .. By any statement or representation, ex-

press or implied, made directly or indirectly,thatt the manufacturer, wholesaler or distribu-tor of such motor vehicles will , in any mannerbenefit or injure such dealer if ' such dealer shallor shall not sell , assign or transfer all or part ofsuch retai l sales contracts to such sales financecompany . .

3. By an express or implied statement orrepresentation made directly or indirectly, thatthere is an express or implied obligation on thepart of ' such dealer to so sell, assign or transferall or part of ' such retail sales contracts on suchmotor vehicles to such sales finance companybecause of any relationship or affiliation be-tween such sales finance company and the man-ufaeturer, wholesaler or distributor of suchmotor vehicles

(d) Any such statement or representations setforth in par,, (c) are declared to be unfair tradepractices and unfair competition and againstthe policy of this state , are unlawful and areprohibited ,

(e) Anyy retail motor vehicle dealer who,pursuant. to any inducement, statement, prom-ise or threat heieinbefore declared unlawful,shall sell, assign or transfer any or all of hisretail instalment contracts shall not be guilty ofany unlawful act and may .y be compelled totestify to each such act . .

(f) No manufacturer shall di rectly or indi-rectly pay or give, or contract to pay or' give,anything of service or value to any sales finance


3749 AUTO DEALERS-FINANCE COMPANIES 218 .015

may be fined not more than $200 or imprisonednot more than 6 months or both . .

(8) PENALTIES s . Except for sub (3) (a) 1, 3, 6, 7,11, 12, 13, 20, 25, 29 and 30, any personviolating this section may be required to forfeitnot less than $25 nor more than $500 for eachviolation .

(8m) COMMENCEMENT OF ACTION. Upon therequest of the licensor, the department of justiceor the district attorney may commence an ac-tion in the name of the state to recover aforfeiture under sub . . (8)' An action under sub . .(8)shall be commenced within 3 years' after theoccurrence of the unlawful-actor practice whichis the subject of the action.

(9) Civic DAMAGES. (a) Any licensee sufferingpecuniary loss because of a violation by anyother licensee of sub, (3) (a) 4, 11, 15 ; 16, 17, 23,24, 26 or 32 or because of any unfair practicefound by the commissioner or office of thecommissioner of transportation under sub (5)(a) may recover damages therefor in any courtofcoinpetent juzisdiction in an :amount equal to3 times the pecuniary loss together with costsincluding a reasonable attorney fee ..

(b) Any retail buyer suffering pecuniary lossbecause of a violation by a licensee of sub (3)(a) 4, 5, 6, 8, 9, 10, 11, 18 or 3 1 may recoverdamages, for the loss in any court of competentjurisdiction together with costs, including rea-sonable attorney fees . _

History: 19 7 1 c : 112, 125 ; 1 971 c 164 ss 64 , 83 ; 1971 c .22 8, 2,39 ;1973 c 171, 243 ; 1 975 c 9 4, 1 21 , 263, 36 1 ; 197 5 c3 75 s 44 ; 1975c 407, 421 , 422 ; 1 977 c . 29 ss, 1 363 t o 1 372,1 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 c3 47 s. 80 ( 2) ; ] 98 1 c 382 ; 1 98 1 c 3 90 s 25 2 ; 1 983 a. 36 ss 76,77, 96 (1) ; 1983 x. . 147, 153, 154 ;- 1983 a,- 1 89 ss 240 , 241 , 329(30) ; 1983 a. 1 9 2 , 243 ;'460

S ecti o n 1 8 0 ,8 47 (1), p res cr i bin g th a t no f oreig n cotpoca-tio n transacting business i n t he s tate w it h o ut a certifica te ofauthority, 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 acertificate o f a u t hori ty-and 21 8 .0 1 (2) (b d ) 3-providingth a t the o btai n i n g o f a license u nd er the Motor Vehicle Deal -ers Law s hall con clusive l y est abli s h tha t such d istrib u tor isd o in g bu sin ess in this state-have e nti rely dif f ere nt purp osesa 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. .

When an instalment sal e contract i s sig ne d i n bla nk it isvoi d . Vic H a n sen & Son s, Inc v C ro wl ey, 5 7 W (2d ) 106,203 NW (2d ) 728 .

Wilful " under ( 3 ) (a) 6 includes both n o n- accidental a ndfraudulent acts . Sta te need n o t prove intent t o deceive buye runder (3) ;(a) 1 8 . D e p t o f T ra n sp v ' Tran s p , Comm lOS W( 2d ) 678, ;3 T 5 NW (2d) 3 7 1 (C, tApp 1 48 1 ), afPd 11 ] W (2d )80, 3 30 NW ( 2d) 159 (1 98 3)

S een ote t o 1 92 1 , citing 66 At ty Gen . 302 .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 imposedo n cla ims under, sub (3) (a ) 17,, M oss ne r P or sche Audi , In ccv Vol k swagenwe rk ; A G 397, F Supp 7 1

218 .015 Repair, replacement and refundunder new motor vehicle warranties . (1) Inthis section :

(a) "Collateral costs" means expenses in-curred•by ;a consumer in connection with the

repair of a nonconformity ; including the costsof obtaining alternative transportation .

(b) "Consumer" means any of the following:1 The purchaser of 'a new motor vehicle, if

the motor vehicle was purchased from a motorvehicle dealer for purposes other than resale ..

2 . A person to whom the motor vehicle istransferred for purposes other than resale , if thetransfer occurs before the expiration of ' an ex-press warranty applicable to the motor vehicle

3 . A person who may enforce the warranty .(c)' "Manufacturer" means a manufacturer

as defined in s . 218 : 01 (1) (n) and agents of themanufacturer , including an importer, a distrib-utor, factor y branch , distributor branch andany warrantors of' the manufacturer's motorvehicles ,, but not including a motor vehicledealer .

(d) "Motor vehicle " means a motor vehicleeas defined in s . 218 01 (1) (k), but does notinclude any vehicle that is not motor-driven .

(e)' " Motor vehicle dealer " has the meaninggiven under s 21$ , 01 (1) (a) .

(f) "Nonconformity" means a condition ordefect which substantially impairs the use , valueor safety of a motor vehicle, and is covered byan express warranty applicable to the motorvehicle, but does not i nclude a condition ordefect which is the result of abuse , neglect orunauthorized modification or alteration of themotor vehicle by a consumer .

(g) "Reasonable allowance for use" meansan amount attributable to a consumer ' s use of amotor vehicle, but does not include any periodafter' the consumer ' s first report to the manufac-turer or any of its authorized motor vehicledealers of a 'nonconformity with an expresswarranty applicable to the motor vehicle duringwhich the motor vehicle is out of service due tothe nonconformity

(h) "Reasonable attempt to repair" meansany of the following occurring within the termof an express warranty applicable to a newmotor `vehicle or within one year after firs tdelivery of - thee motor vehicle to a consumer ,whichever is sooner:

I The samee nonconformity with the war-ranty is subject to repair by the manufacturer orany of its authorized motor vehicle dealers atleast 4 times and the nonconformity continues . .

2 , The motor vehicle is out of service for anaggregate of at least 30 days because of war-ranty' nonconfoimities

(2) (a) If a new motor vehicle does notconform to an applicable express warranty andthe consumer reports the nonconformity to themanufacturer or any of its authorized motorvehicle dealers and makes the motor vehicleavailable for repair before the expiration of thewarranty or one year after first delivery of ' the


218.015. AUTO DEALERS-FINANCE COMPANIES 3750

motor vehicle to a consumer, whichever issooner , the nonconformity shall be repaired .

(b) If' after a reasonable attempt to repair thenonconformity cannot be repaired, the manu -facturer s hall , at the direc t ion of' the consumer,either replace the motor vehicle with a compa-rable new motor vehicle or accept return of themotor vehicle and refund the full purchase priceplus any amounts paid by the consumer, at thepointt of" sale and all collateral costs associatedwith the repair of the nonconformity less areasonable allowance for use to the consumerand any holder of a perfected security interest inthe motor vehicle, as their' interests may appear,

(c) At the timee of receiving the comparablenew motor vehicle or refund under par . (b), theconsumer shall surrender the motor vehiclesubject to the nonconformity to the manufac-turer together with the certificate of ' title with allendorsements necessary, to transfer title to themanufacturer . The manufacturer shall providethe consumer with the comparable new motorvehicle or refund no later than 30 da ys after anoffer to transfer title in compliance with thisparagraph by the consumer . _

(d) No motor vehicle returned by a consumerunder par': (b) may be resold unless full disclo-sure of the reasons for return is made to anyprospective buyer .

(3) All time periods under subs .. (1) (h) and (2)(a) are extended by any period during whichrepair services are not available to the consumer ,because of war, invasion, civil disturbance,strike , casualty or natural disaster .

(4) Subsection (2) (b) does ` not apply to aconsumer who has not resorted to an informaldispute settlement procedure available to theconsumer and :

(a) Complying with 16 CFR Part 703 ; or(b) Providing protections for the consumer

equal to or greater. than those provided under16 CFR Part 703 .

(5) This section does not limit rights orremedies available to a consumer under anyother law

(6) Any waiver by a consumer of rights underthis section is void .

(7) In addition to any other remedies, aconsumer d amaged by a violation of this sec-tion may bring an actionn for twice the amountof any pecuniary loss, t ogether with costs anddisbursements and reasonable attorney fees,and for equitable relief determined by the court .

History : 1983 a.. 48

218.02 Adjustment servicee companies . (1)DEFINITIONS, As used in this section :

(a) "Adjustment service company," hereinaf-ter called company, shall mean a corporation,association, partnership or individual engagedas principal in the business of prorating theincome of a debtor to his creditor or creditors,or of assuming the obligations of any debtorr bypurchasing the accounts he may have with hisseveral creditors, in return for which the princi-pal receives a service charge or otherconsideration .

(b) "Commissioner" shall mean the commis-sioner of banking .

(2) LICENSES ; APPLICATIONS;. F EE S; BOND. (a)

Eachh adjustment service company shall apply tothe commissioner of banking f'or' a license toengagee in such business. Application for aseparate license for each office of ;a company tobe operated under this section shall be made tothe commissioner in writing, under oath, in aform to be prescribed by the commissioner . Thecommissioner may issue more than one licenseeto the same licensee :

(b) At the time of making application andbefore engaging in business, every'applicant foran adjustment service company license "shall paya fee of $100 to the commissioner for investigat-ing the application and the sum of $100 as anannual license fee .. If'the cost of'an investigationexceeds $100; the applicant shall, upon demandof the commissioner, pay the excess cost . . Noinvestigation fee shall be required on the re-newal of a license ..

(c) The commissioner may require any li-censee either before or after the issuance of thelicense to file and maintain in forcee a bond in aform to :be prescribed by him and acceptable tohim, in such sum as he may deem necessary tosafeguard the interest of the borrowers and thepublic, not exceeding, however, the sum of$5,000 . .

(3) CONDITIONS OF THE ISSUANCE OF LICENSES , .

The commissioner shall issue a .license to theeapplicant to conduct such business at the officespecified in the application in accordance withthe provisions of this section,, if' the commis-sioner shall find :

(a) Thatt the applicant has filed the requiredapplication and paid the required fees .

(b) That the financial responsibility, experi-ence character and general fitness of'the appli-cant and of'the'members thereof if'the appli-cant be a partnership or association, and of theofficers and directors thereof if'the applicant bea corporation, are such as to command the

SUBCHAPTER II

ADJUSTMENT SERVICE COMPANIES


3751 AUTO DEALERS-FINANCE COMPANIES 218.02

confidence of the community and to warrantbelief that the business will be operated hon-estly, fairly and efficiently within . the purposesof this section .

(c) That allowing such applicant to engage inbusiness will promote the convenience and ad-vantage of the community in which the businessof the applicant is to be conducted .

( 4) ORDER DENYING APPLICAT ION': If 'the com-missioner is not satisfied as to all of'the mattersspecified in sub . . (3) he shall enter a special orderdenying the application for a license and shallreturn to the applicant his license fee . Thecommissioner shall make findings of fact as partof and in support of his order denying anyapplication for a license .

(5) LICENSES; POSTING ; CHANGES OF LOCAT ION;RENEWAL (a) Every license issued shall state theaddress of the office at which the business is tobe conducted, the name of the licensee, and if'the licensee is a partnership or association, thenames of the members thereof, and if'a corpora-tion` the date and place of its incorporation .Such licenseshall be kept conspicuously postedin the office of the licensee and shall not betransferable or assgnable .

(b) Whenever a licensee shall contemplate achange of his place of business to anotherlocation within the same city orvillage, he shallgive written notice thereof to the commissioner,who shall attach to the license his authorizationof such removal, specifying the date thereof andthe new location. Such authorization shall beauthority for the operation of such businessunder the same license at the specified newlocation. No change in the place of business ofa licensee to a location 'outside of the originalcity or village shall be permitted under the samelicense .

(c) Every licensee shall;, on or before the tenthday ofèach December, pay to the commissionerthe annual license fee for the next succeedingcalendar year

(6) REVOCATION; SUSPENSION; REINSTATEMENTAND TERM OF LI CENSES. The commissioner, aftercomplaint, notice and hearings as provided ins .21719, shall revoke any license in the followingcases :

(a) I f the licensee has failed to pay the annuallicense fee or to maintain in effect the bondrequired under the provisions of this section ;

(b) If'the licensee has violated any provisionsof thiss section or of any lawful order issuedhereunder;

(c) If any fact or condition exists which, if ithad existed at the time of the original applica-tion for such license, clearly would have war-ranted; the commissioner in refusing to issuesuch license;

(d) If' the licensee has demonstrated untrust-worthiness or incompetency to act in such busi-ness in a manner to safeguard the interests ofthe public

(7) POWERS OF COMMISSIONER . It shall be theduty of the commissioner and he shall havepower, jurisdiction and authority to investigatethe conditions and ascertain the facts with refer-ence to such companies and upon the basisthereof -

(a) To issue general or special orders inexecution of or supplementary to this section ,but not in confli ct th e rewith , to pr otect debtorsfrom oppressive or deceptive practices oflicensees ;.

(b) To regulate advertising and solicitation ofbusiness by licensees , and to prevent evasions ofthis section ;

(c) At any time and so often as the commis-sioner may determine to investigate the businessand examine the books , accounts, records andfiles used therein of every licensee . The actualcost of such examination shall be paid to thecommissioner by every licensee so examinedwithin 30 days after demand therefor by thecommissioner, and the state may maintain anaction for thee recovery of such costs in anycourt of competent jurisdiction ;

(d) To determine and fix by general order themaximum fees or charges that such companiesmay make .

(8) STATEMENT TO DEBTOR, When any settle-merit or reduction of accounts has been madeby such company , it shall furnish the debtor ondemand a verified statement showing theamount due creditors by thee terms of suchsettlementor seduction .

(9) RULES AND REPORTS ; FEES; ENFORCEMENT .(a) The commissioner may make such rules andrequire such reports as he deems necessary forthe enforcement ., of this section , Sections212.: 17,217 . 18 and 217 .21 (1) and (2) apply toand are available for the purposes of this sec-tion. Orders of the commissioner under thissection are subject to review by the consumercredit review board under s . 220 . . 037 ..

(b) All fees and moneys received by thecommissioner under authority of this chaptershall be paid by him intoo the state treasurywithin one week after the . receipt thereof .

(c) The commissioner shall investigate , ascer-tain and determine whether this chapter or thelawful orders issued hereunder are being vio-lated and for such purposes he shall have all ofthe powers conferred by ss . 217 . 17 and 217 .. 18 ..The commissioner shall report all violations tothee district attorney of the proper county forprosecution .


218.02 AUTO DEALERS-FINANCE COMPAN IES 3752

cant is already licensed under this section, andthe sum of $100 as an annual license fee . If thecost of investigation exceeds $100 , the applicantshall , upon demand of the commissioner , paythe excess cost . No investigation fee is requiredon the renewal of a licen se

(c) The license fee for a collector or solicitorshall be $2 . This license shall be carried as ameans of identification whenever the collectoris engaged in business , The licensee shall sta tethe name of the employer and in case of achange of employerr the commissioner sh allindorse such change on the license withoutcharge .

(d) The commissioner may require any li-censee to file and maintain in force a bond , in aform to be prescribed by the commissioner andacceptable to him , and in such sum as he maydeem reasonably necessary to safeguard theinterests of the public „

(4) ISSUANCE OR DENIAL OF LICENSES (a) Uponthe filing of such application and the paymentof such Fee, thee commissioner shall make hisinvestigation, and if he finds that the characterand general fitness and the financial responsi-bility of the applicant, and the members thereof 'if the appli cantis a partnership or association ,and the officers and directors thereof if theapplicant is a corporation, warrant the belief'that the businesss will be operated in compliancewith this section the commissioner shall there-upon issue a license to said applicant , Suchlicense is not assignable and shall permit opera-tion under it only at or f rom the locationspecified in the license . . A nonresident of thisstate may , upon complying with all other provi-sions of this section , secure a collection agenc ylicense provided he maintains an active office inthis state ,

(b) No licensee shall conduct a collectionagency business within anyy office, room orplace of business in which any other business issolicited or engaged in , or in association orconjunction therewith, except as may be autho-rized in writing by the commissioner upon hisfinding that the character of such other businessis such that the granting of such authoritywouldd not facilitate evasion of this section orthe lawful orders issued thereunder ,

(5) REVOCATION ; SUSPENSION ; REINSTATEMENTof LICENSES . (a) The commi s sioner may suspendor revoke any license issued under this section ifhe finds that :

1, The licensee has violated any ofthe provi-sions of this section or any lawful order of thecommissioner made thereunder ;

2 . Any fact or, condition exists which , if it hadexisted at the time of the original application forsuch license , would have warranted the com-missioner in refusing to issue such license ;

218.04 Collection agencies . (1) DEFINITIONSThe following terms , as used in this section ,shalll have the meaning stated , unless the con-text requires a different meaning :

(a) "Collection agency " means any personengaging in the business of collecting or receiv-ing for payment for others of any account , billor other indebtedness . . It shall not includeattorneys at law authorized to practice in thisstate and resident herein, banks , express com-panies savings and loan associations organizedunder the laws of Wisconsin ; insurers and theiragents,' trust companies ; or professional men ' sassociations collecting accounts for its memberson a nonp r ofit basis , where such members arerequiredby law to have a license, diplomaa orpermit to practice or follow their profession,real estate brokers and real estate salespersons .

(b) ,= "" Collecto r" or "solicitor" means anyperson employed by a collection agency tocollect or receive payment or to solicit thereceiving or collecting of payment for others ofany account, bill or other indebtedness outsidebf'the office

(c) `` Commissioner" means the commis-sioner of banking ..

(d) "General order" means an order which isnot a special order .

(e) "Licensee" means a person licensed underthis section ,

(f) "Person" includes individuals , partner-ships, associations and corporations .:

(g) " Special order" means an order against aperson

(2) LICENSES REQUIRED No person shall oper-ate as a collection agency or as a collector orsolicitor in this state without first having ob-tained a license as required by this section .

(3) LICENSES; APPLICATIONS ; FEES; BOND : (a)Application for licenses under .the provisions ofthis section shall be made to the commissionedin wr iting , under oath , on a form to be pre-scribed by the commissioner , All licenses shallexpire on June thirtieth next following theirdate of issue

(b) At the time of making application, everyapplicant for a collection agency license shallpay a fee of $100 to the commissioner forinvestigating the application, unless the appli-

(10) PENALTIES Any person violating any ofthe provisions of this section shall be punishedby a fine of not more than $500 or b y imprison-ment in the county jail for not more than 90days, or by both such fine and imprisonment..

History : 19 7 1 c .-. 125, 164, 215 ; 1973 c 3

SUBCHAPTER III

COLLECTION AGENCIES


AUTO . .DEALERS-FINANCE COMPANIES 218 .043753

3 . The licensee has failed to pay the annuallicense fee or to maintain in effect the bondrequired unde r sub . (3) (d) ;

4 , The l icensee has failed to remit money dueto any and all claimants or forwarders within 30days from the close of the month during whichthe collection was effected ; or

5 . The licensee or any officer or employe of ' ithas violated chs421 to 42 '7 ..

(b) No license shall be revoked or suspendedexcept after a hearing . A complaint stating thegrounds for suspension orrevocation togetherwithh a notice of hearing shalll be delivered to thelicensee at least 5 days in advance of the heax-ing . In the event the licensee cannot be found ,complaint and notice of hearing mayy be left atthe place of business stated in the license andthis shall be deemed the equivalent of deliveringthe notice of hearing , and complaint to thelicensee . .

(c) In the event of the death of a licensee , ifthe licensee is an individual, or of the partners , ifthe licensee is a partnershi p, ., the license of theagency shall terminate as of the date of' death ofsaid licensee, except the commissioner may rein-state a license if " the- estate of the former licenseesignifies to the commissi oner within 45 days itsintention to continue the business of' the agency .

(6) LICENSES;. POSTING; CHANGES OF LOCATION;RENEWAL . (a) Whenever a collection agencyyshall contemplatee a change of its place of busi-ness to another location within the same city orvillage , it shall give written notice thereof to thecommissione r ; who shall attach to the licensehis authorization of such removal , specifyingthe date thereof and the new location , Suchauthorization shall be authority for the opera- ,tion of such business underr the same license atthe specified new location . All collectionagency licenses shall be conspicuously posted inthe office of the licensee .

(b) Every licensee applying for a renewal ofhis license shall , on or beforee thee first day ofJune, pay in advance to the commissioner theannual license fee . .

(c) Before discontinuing operating as a col-lection agency under the provisions of thissection, every licensee shall furnish the commis-sioner with proof ' n . a form to be determined bythe commissioner and approved by the advisorycommittee that :

i . Proper remittance has been made to allclaimants or forwarders on money collected ..

2 All accounts have been returned to theclaimants or forwarders..

3 . All valuable papers given to; the licensee bythe claimant or forwarder, in connection withclaims have beenn returned to the claimants orforwarders .

(7) POWERS OF COMMISSIONER ; ADVISORY COM-

MIT iEES . It shall be the duty of the commissionerand he shall have power , jurisdiction and au-thority to investigate the conditions and ascer-tain the facts with reference to the collection ofaccounts and upon the basis thereof .̀

(a) To issue any general or special order inexecution of ' or supplementary to this chapter toprotect the public from oppressive or deceptivepractices of licensees and to prevent evasions ofthis chapter-,

(b) For, the purpose of discovering violationsof this section the commissioner ' may cause aninvestigation to' be made of the business of thelicensee transacted under the provisions of thissection , and shall cause an investigation to bemade of convictions reported to him by anydistrict attorney for violation by a licensee ofany of the provisions of this section , The placeof business, books of ' aecounYs, papers , records,safes and vaults of said licensee shall be open toinspection and examination by 'the commis-sioner or his representative for the purpose ofsuch investigation and the commissioner shallhave authority to examine under oath all per-sons whose testimony he may require relative tosaid investigation : The cost of ' the first investi-gation or examination during any licensing yearshall be paid b y the licensee, but the cost ofadditional investigation or examination duringsuch year shall be paid by the licensee only ifsuch examination discloses violation of' sub (5)(a)4 , Said cost shall be determined by proratingthe amount of salaries and expenses of allexaminers, employes and other persons en-gaged in examining licensees under this section,if ' any, and any other expenses which may beattributable thereto . The licensee shall pay thecost of any hearing including witnesss fees , un-less it be found by the commissioner , board ofreview- or court that licensee has not violatedany provision of this section . . All said costs shallbe paid by thee licensee within 30 days afterdemand therefor by the commissioner . Thestate may maintain an action for the recovery ofsuch costs andd expenses. in any court of compe-tent jurisdiction ..

(c) To appoint advisers from the individualsengaged in the collection business in the stateand in any locality, which advisers shall beconsulted by andd shall assist the commissionerin the execution of his duties under the provi-sions of this section . The commissioner mayappoint such advisers as deputies .. Such per-sons, either as advisers or deputies, shall receiveno compensationn for their services but may bereimbursed for their actual and necessary trav-eling expenses . Such expenses shall be auditedand paid and charged to the commissioner forthe administration of this chapter .



(d) To make all necessary or proper orders,rules and regulations for the administration andenforcement of this section . .

(8) HEARINGS AND ORDERS The CO 1T1ri7 1 S -sinner shall have the same power to conducthearings, take testimony and secure evidence asis provided in 'ss. 217 ..17, 217 18 and 217 .19 .

(9) ADMINISTRATIVE REVIEW Any licensee orother person in interest being dissatisfied withany order of the commissioner made under thissection may have a review thereof as providedins. 220 .037 .

(9m) DELINQUENT COLLECTION A GENCI ES;

COMMISSIONER MAY TAKE POSSESSION.. (a) If the

commissioner finds that a licensee is insolventor that he has collected accounts but has failedto remit money due to any claimant or for,-warder; within 30 days from thee end of themonth in which collection was-made, and it isnecessary to protect the interest of the public orwhen the license of a collection agency hasexpired or has terminated for any reason what-soever, he may take possession of the assets andthe books and records of the. licensee for thepurpose of liquidating its business, and for such,other relief' as the nature of the case and theinterest of the claimants or forwarders mayrequire The liquidation of business shall bemade, by and under the supervision of thecommissioner either in the name of the commis-sioner or in the name of the licensee : and theecommissioner or his successor shall be vestedwith title to all of the assets including theproceeds of'the bond or bonds which have beenfiled with the commissioner as provided forunder sub : (3), (d), and the proceeds of any andall money paid direct- to the claimant or for-warder by the debtor priorr to the date saidlicense has terminated. Money paid to thelicensee or to the commissioner after the termi-nation of the license shall be disposed of by thecommissioner with the approval of the circuitcourt,

(b) In taking possession of the property andbusiness of any such collection agency, thecommissioner shall forthwith give notice to anyand all banks or bank'' corporations holding orin possession of any bank balances or assets ofsuch agency and thereafter- such assets shall beheld subject to the order of the commissioner .

(c) In addition to the authority conferred bypat . (b), the commissioner may, with the ap-proval' of the circuit court for the countywherein the main office is located, for the pur-poses of collection or liquidation, sell, assign,convey and transfer or approve the sale, assign-ment conveyance and transfer of the assets ofsuch collection àgency under` such terms andconditions as the commissioner may deem for

the best interests of' the claimants of such collec-tion agency

(d) The provisions of s . 220 08 (3b), (4), (6),(7), (8), (13), (14) and ( 17) shall apply to thi ssection insofar as they are applicable .

(e) The commissioner shall cause notice to begiven by publication of 'a class 3 notice , underch . 985 , if no action has been commenced underpar . (f), calling on all persons who m ay haveclaims against such licensee, to present the sameto the commissioner, and make legal proof 'thereof '' at a place and within a time, to betherein specified . . The commissioner may mail asimila r notice to all persons whose names ap-pear as claimants or forwarders upon the booksand records of' the licensee or as may appear inthe records of the commissioner on the swornreports required to be furnished the commis-sioner according to the provisions of ' sub . (10) .Anyy claimant or forwarder whose portion ofthe collection or collections has not been prop-erly remitted shall file a claim which shall beconsidered as a preferred claim for the amountactually due the claimant or forwarder afterdeducting any commission or fee that may bedue and owing the licensee . If the commissionerdoubts the justice and validity of any claim , hemay reject the same and serve noticee of suchrejection ' upon the claimant either by mail orpersonally . An affidavit of the service of suchnotice, which shall be prima facie evidencethereof ', .- shall be filed with the commissioner . .An action upon a claim so rejected must bebrought in the circuit court for the countywherein the licensee is located within 30 daysafter such service of ' such notice of rejection of'claim has been filed,: Claims presented after theexpiration of ' the time fixed in t he notice t o theclaimants or forwarders shall be entitled toreceive only liquidating dividends declared afterpresentation, unless otherwise ordered by thecourt, The court may fix a date after which allclaims shall be barred .

( f) Whenever any agency , of ' whose assets andbusiness the commissioner has taken posses-sion, as aforesaid, deems itself' aggrievedthereby, it may,, at any time within 10 days aftersuch taking possession, apply to the circuitcourt for the county in which the main office ofsuch agency is located to enjoin further pro-ceedings; and such court, after citing the com-missioner to show cause why further proceed-ings'should not be enjoined and hearing theallegations and proofs of the parties and deter-mining the facts, may, upon the merits dismisssuch application or enjoin the commissionerfrom further proceedings, and direct him tosurrender such business and property to suchagency . .


3755 AUTO DEALERS-FINANCE COMPAN IES 218.05

(g) Wheneve r the commissioner shall havepaid to each and every claimant or forwarder ofsuch collection agency , whose claims as suchclaimant or forwarder have been duly provedand allowed the full amount of such claims andshall have made proper provisions for un-claimed and unpaid collections and shall havepaid all the expenses of' the liquidation, he shallliquidate the remaining assets exclusivee of theproceeds of' the bond or bonds for the benefit ofthe general creditors ; or if no claims have beenfiled by or in . behalf' of the general creditors, thecommissioner shall turn over the remainingassets to the . circuit court for furtherdisposition .

(h) All accounts andvaluable papers given tothe agency by the claimant or forwarder inpossession of the commissioner ; pertaining toaccounts placed with the agency f "or, collectionshall be returned to the claimant or forwardedby the commissioner within 30 days after verifi-cation of tlie . claim has been made .

(10) ANNUAL REPORT ; RECORDS (a) Each li-censee shall annually; on or before the fifteenthday of March ; file : a report with the commis-sioner giving such reasonable and relevant in-formation as the commissioner may, by generalor special order , require concerning the busi-ness and operations conductedd by such licenseewithin the state . . . Such report shall be madeunder: oath and shall be in the form prescribedby the commissioner ..

(b) The commissioner shall require the li-censee to keep such books and records in hisplace of business as• will enable the commis-sioner= to determine whether the provisions ofthis section are being: complied with . Everysuch licensee shall preserve the records of finalentry used in such business for a period of atleast ' 6 years after final remittance is made onany account placed with the licensee for roller- .tion or after any account has been returned tothe claimant on which one or more paymentshave been paid .

(11) SUBTERFUGE, The provisions of thischapter shall apply to any licensee or otherperson who, by any device, subterfuge or pre-tense whatever , shall make a pretendedpurchase or a pretended assignment of accountsfrom any other person for the purpose of evad-ing, the provisions of this section

(12) P E rrnc riES Any person who shall violateany provision of this section shall be guilty of amisdemeanor and, for- each and every suchoffense shall, upon conviction thereof, be pun-ished by a fine of not more than $1,000 or byimprisonment in the county jail for not morethan 6 months, or by both such fine andimprisonment.

COMMUNITY CURRENCYEXCHANGES

218.05 Community currency exchanges . (1)DEFirttiioNS . As used in this section :

(a). ",`Commissioner" means the commis-sioner of banking .,

(b) "Communityy currency exchange" meansany person, except banks incorporated underthe laws of this state andd national banks orga-nized pursuant to the laws of the United Statesand any credit union operating under eh . 186which obtains a certificate of authority from thecommissioner, engaged in the business of andproviding facilities for cashing checks, drafts,money orders and all other evidences of moneyacceptable to such communityy currency ex-change for a fee, service charge or other consid-eration Nothing in this section shall be held toapply to any person engaged in the business oftransporting for hire, bullion, currency, securi-ties, negotiable or nonnegotiable documents,jewels or other property of -great monetaryvalue nor to any person engaged in the businessof selling tangible personal prope r ty at retailnor, to any person licensed to practice a profes-sion or licensed to engage in any business in thisstate, who, in the course of such business orprofession and.,, as an incident :thereto; casheschecks, drafts, money orders or other evidencesof money ;

(2) , LICENSES REQUIR ED After, July 1 , 1945, rinoperson ; firm, association, partnership .or cot po-ration shall engage in the business of a commu-nity currency exchange without first securing alicense to do so from the commissioner asrequired by this section ..

(3) LICENSES; APPLICATIONS; FEE S ; BOND .. (a)Application for such license shall be in writing,under oath, on a form to be prescribed by thecommissioner : Each application shall containthe following information :

(13) ENFORCEMENT . It shall be the duty of thecommissioner and he shall have power , jutisdic-tion and author ity to investigate, ascertain anddetermine whether this section or the lawfulorders issued hereunder are being violated andfor such purposes the commissioner shall haveall the powers confe rred by subs. (4) and (5) .The commissioner shall report all violations tothee district attorney of the proper county forprosecution.

History: 1971 c 125, 164, 239; 1973 c . 3 ; 19 ' 79 c . 102 s .236 (4); 1979 c 162s 38 (3) ; 19 7 9 c 341 s . 12 (2) ; 1983 a . 189 .

Requirement under this section that foreign collectionagency maintain Wisconsin office with records may not vio-late commerce clause. 69 Atty Gen 113.

SUBCHAPTER IV


218.05 AUTO DEALERS--FINANCE COMPANIES 3756

1 . The full name and address (both of resi-dence and place of` business) of thee applicant,and if the applicant is a partnership or associa-tion, of every . member thereof, and the nameand business address if the applicant is acorporation .

2 The county and municipality, with streetand number; if any, where the community cur-rency exchange is to be conducted ; and

3 Such other information as the commis-sioner may require .

(b) Such application shall be accompanied bya fee of $100 for the cost of investigating theapplicant. When thee application has been ap-proved by the commissioner and the applicantso advised, the applicant shall pay an additional$100 as an annual license fee for a periodterminating on the last day of the current calen-dar year,

(c) Before any license is issued to a commu-nity currency exchange the applicant shall fileeannually with and have approved by the com-missioner a surety bond in the principall sum of$5;000,' issued by an insurer authorized to dobusiness in this state .. The bond shall run to thestate of Wisconsin and shall be for the benefit ofany creditors of the community currency ex-change for any liability incurred forr any sumdue to any payee of any check, draft or moneyorder left with the community currency ex-change for collection, and also for any penaltiesthat may be imposed under this section . If thecommissioner finds at any time the bond isinsecure or exhausted or otherwise doubtful; anadditional bond in like amount to be approvedby the commissioner shallbe filed by the li-censee within 30 days after written 'demand bythe commissioner :

(4) LICENSES ; ISSUANCE; DENIAL If the com-missioner shall find after investigation that theapplicant is (a) trustworthy and reputable, (b)that he has business experience qualifying himto competently conduct, operate, own, or be-come associated with a community currencyexchange, (c) that he has a-good business repu-tation and is worthy of a license, the commis-sioner shall issue to the applicant qualifyinghereunder, a license to operate a communitycurrency exchange at the location specified inthe application, which license shall remain infull force and effect until it is surrendered by thelicensee or revoked by the commissioner . If thecommissioner shall not so find, he shall notissue such license and shall notify the applicantof such denial, retaining the investigation fee tocover the cost of investigating thee applicant .The commissioner, shall approve or' deny everyapplication within 30 . days from the filingthereof. . No application shall be denied unlessthe applicant has had notice of a hearing on said .

application and an opportunity to be heardthereon.. If the application is denied,, the com-missioner shall, within 20 days thereafter, pre-pare and keep on file in his office a written orderof denial which shall contain his findings withrespect thereto and the reasons supporting thedenial, : and shall mail a copy thereof to theapplicant at the address set forth in the applica-tion, within 5 dayss after the filing of such order

(5) FORBIDDEN TO ACT AS DEPOSITORY. Nocommunity currency exchange shall be permit-ted to accept money or evidences of money as adeposit to be returned to the depositor or uponthe depositor's order; and no community cur-rency exchange shall be permitted to act asbailee or agent for persons, to hold money orevidences thereof or the proceeds therefrom forthe use and benefit of the owners thereof anddeliver. such .h money or proceeds of evidence ofmoney upon request or direction of such owner .

(6) INSURANCE Every applicant for a licenseunder this section shall, after the application fora license has been approved,, submit a policy orpolicies' of insurance to be approved by thecommissioner, issued by an insurer authorizedto do businesss in this state, which insures theapplicant against loss by burglary, larceny, rob-bery, forgery or, embezzlement in a principalsum determined by the commissioner . Anysuch policy, with respect to forgery, may carry acondition that the : community currency ex-change assumes the first $50 of each claimthereunder.

(8) OTHER BUSINESS FORBIDDEN. A commu-nity currency exchange shall not be conductedas a department of'another business .- It must bean entity, financed and conducted as a separatebusiness unit This shall not prevent a commu-nity currency exchangee from leasing a part ofthe premises of another business for the conductof this business on the. same premises ; provided,that no community currency exchange shall beconducted on the same premises with a businesswhose chief source of' revenue is derived fromthe, sale of alcohol beverages for consumptionon the premises . . This subsection shall not applywhen such other business is subject to anystatute which provides for supervision and ex-amination by the commissioner .

(9) TOKENS No community currency ex-change shall issue tokens to be used in lieu ofmoney for the purchase of goods or servicesfrom any enterprise,

(10) LICENSES; POSTING; ASSIGNMENT ;NUMBER; CHANGE OF LOCATION, (a) Such licenseshall state, the name of the licensee and theaddresss at which thee business is to be con-ducted.- Such, license shall be kept conspicu-ously posted in the place of business of the


3757 AUTO DEALERS-FINANCE COMPANIES 218.05

licensee and shall not be transferable orassgnable

(b) No more than one place. o€business shallbe maintained under the same license, but thecommissioner may issue more than one licenseto the same licensee upon the compliance withthe provisions of this section governing anoriginal issuance of a license , for each newlicense.

(c) Wheneverr a licensee shall wish to changehis place of business to any location other thanthat originally set forth in his license, he shallgive written notice thereof to the commissionerand if the change is approved the commissioner :shalll attachh to the license , in writing, a riderstating the new address or location of the com-munity currency exchange . :

(11) RENEWAL, Every licensee shall , on orbefore December 20, pay to the commissionerthe sum of $50 as an annual license fee for thenext succeed i ng calendar year and shalll at thesame time fi le with the commissioner the annualbond and insurance policy or policies in thesame amount and of the same . character asrequired by subs (3) (c) and (6)

( 12)` ; REVOCAIION ; SURRENDER ; NOTICE, (a)The commissioner may, upon 10 days' notice tothe licensee by mail directed to the licensee atthe address set forth in the license , stating thecontemplated action and in general the groundstherefor , and upon reasonable opportunity tobe heard prior to such action, revoke any licenseissued hereundei ' if ' he shall find that :

1 . The licensee has failed to pay the annuallicense fee or to maintain in effect the requireddbond or insurance policy or policies or to com-ply with any order , decision or finding of thecommissioner made pursuant to this section ..

2 , The licensee has violated any provision ofthis section or any . regulation or direction madeby the commissioner, under this, section ,

3 Any factor condition exists which, if it hadexisted at 'the time of the original application forsuch license, would have warranted the com-missioner in refusing the issuance of the license ..

(b) The commissioner may revoke .e only theparticular license with respect to which groundsfor revocation may occur or exist, or if he shallfind that such grounds for revocation are ofgeneral application to all offices or to more thanone office operated by such licensee , he mayrevoke all of the licenses issued to such licenseeor such number of licenses to which suchgrounds apply .

(c) A licensee may surrender any license bydelivering to the commissioner- written noticethat he surrenders such license , but such surren-der shall not affect such licensee's civil or crimi-nal liability for acts committed prior to suchsurrender, or affect his bond, or entitle such

licensee to a return of any part of the annuallicense fee

(d) Every license issued hereunder shall re-main in force until the same h as been surren-dered or revoked in accordance with this s ec-tion , but the commissioner may on his ownmotion issue new licenses to a licensee whoselicense or licenses shall have been r evoked if n ofact or condition then exists which clearlywould have warranted the commissioner inrefusing originally the issuance of such licenseunder this section . .

(e) No license shall be revoked until thelicensee has had notice of a hearing thereon andan opportunity to be heard .. When any license i sso revoked, the commissioner shall within 20days thereafter, prepare and keep on file in hi soffice, a written order or decision of revocationwhich shall contain his findings with re spectthereto and the reasons supportin g the revoca -tion and shall send by mail a copy thereof to thelicensee at the addre ss set forth in the licen sewithin 5 days after the filing in his office of suchorder, finding or decision

(13) REVIEW OF ORDERS . Any person ag-grieved by any order o f' the commi ssioner madeunder this section may have a review thereof' bythe consumer credit review board und er s220 . 037 .

( 14 ) ' ANNUAL. REPORT; EXAMINATION ,. Eachlicensee shall annually , on or before February15 file a report with the commissioner (whichshall be used only for the official purpose s of thecommissioner ') giving such relevant informationas the commissioner may reason ably requireconcerning , and for the purpose of examining,the business and operations during the preced-ing calendar year of each licensed pl ace ofbusiness conducted by such licensee within thestate .. Such report shall be made under oath andshall be in the form prescribed by the commi s -sioner„ The commissioner may at any time andat least once in each year investigate the com-munity currency exchange bu s iness of any li-censee and of every person , pa rtnership, a ss oci-ation and corporation who or which shall beengaged in the business of operating a commu-nity currency exchange . . For that purpose, thecommissioner shall have free access to the of-fices and places of business and to such recordsof all such per-sons, firms, partnerships , associa-tions and corporations and to the officers anddirectors thereof that shall relate to such com-munity currency exchange business , The com-missioner may require the attendance for exam-ination under oath of all persons whosetestimony he may require relative to suchh busi-ness , and in such cases the commissioner, or anyqualified representative of the commissioner ,may administer oaths to all such per sons called


21 8.05 AUTO DEALERS-FINANCE C OMPANIES 3758

218 .11 Mobile home dealers regulated . (1)No person shall engage in the business of sellingmobile homes to the ultimate consumer or tothe retail market in this state unless first licensedto do so by the department as herein provided .

(2) Application forlicense and renewal li-cense shall be made to the department on suchforms as it shall prescribe and furnish and shallbe accompanied by the annual license fee of$SO, License shall expire on December 31 ofeach year and applications for renewal licensesshall be made on or before December 15 nextpreceding expiration of the current license year .

(3) A:, license shall be issued only to personswhose character, fitness and financial ability, inthe opinion of'the licensing agency, is such as tojustify the belief that they can and will deal withand serve the buying public fairly and honestly,will maintain a permanent office and place ofbusiness and an adequate service and partsdepartment during the license year, and willabide by all the provisions of law and lawfulorders of'the.department

(5) A licensee shall conduct the licensed busi-ness continuously during the license year,

(5m)Any person who shall violate any provi-sion of this section shall be fined not less than$25 nor more than $100 for each offense..

(6) The department may deny, suspend orrevoke a`license on the following grounds :

(a) Proof of unfitness .(b) Material misstatement in application for

license'.(c) Filing a materially false or fraudulent

income tax return as certified by the departmentof revenue :

(d) Wilful failure to comply with any provi-sion of this section or any rule promulgated bythe department under this section .

(e) Wilfully defrauding any retail buyer to thebuyer's damage .

(f) Wilful failure to performm any writtenagreement with any retai l buyer . .

(g) Failure or refusal to furnish and keep inforce any bond.d required .

(h) Having made a fraudulent sale, transac-tion or repossession

218.10 Definitions. In this subchapter :(1) "Deliver y date" means the date on which

a mobile home is physically delivered to the sitechosen by the mobile home owner .

(2) "Mobile home " means a vehicle designedto be towed as a singlee unit or in sections upon ahighway by a motor vehicle and equipped andused, or intended to be used , primarily forhuman habitation, with walls of ' rigid uncollap-sible construction, " Mobile home" includes themobile home structure, including the .plumbing,heating and electrical systems and all appliancesand all other equipment carrying a manufac-turer's warranty .

(3) "Mobile home dealer" means a personwho, for a commission or other thing of ' value,sells , exchanges , buys or rents , or offers orattempts to negotiate a sale or exchange of aninterest in mobile homes or , who. is engagedwholly or in part in the business of sellingmobile homes , whether or not the mobile homesare owned by him, but does not include :

(a) A receiver , trustee , administrator , execu-tor-, guardian or other person appointed by oracting: under the judgment or order of anycourt.

(b) Any public officerr while performing : hisofficial duty.

(c) Any employe of' a person enumerated inPar. .(a) or' (b)

(d) Any lender as defined in s . 421 301 (22) .(e) _A person transferring a4 mobile home

registered in his . own name and used for hispersonal, family or household purposes, if thetransfer is an occasional sale and is not part of'the business of the transferor .

(4) "Mobile home manufacturer" means anyperson within or without this state who manu-factures or assembles mobile homes for sale inthis state,

(5) "Mobile home owner" means any personor lessee thereof' who purchases a mobile homeprimarily for use for personal, family or house-hold purposes .

(6) "Mobile home salesperson" means anyperson who is employed by a mobile homemanufacturer or dealer to sell or lease mobilehomes . .

as witnesses , and the commissioner , or his rep-resentative, may conduct such examinations ,and there shall be paid to the commissioner bythe licenseee for each examination a fee of $20for each day or part thereof required to conductthe examination .

History: 1971 c 125 ; 1979 c . 102 ; 1981 c . 79 s 17.

SUBCHAPTER VI

MOBILE HOME DEALERS

(7) "New mobile home" means a mobilehome which has never been occupied, used orsold for personal or business use . .

(8) "Primary housing unit" means a mobilehome exceeding the statutory size under s .34807(9) "Used mobile home" means a mobile

home which has previously been occupied , usedor sold for personal or business use ..

History: 1973 c 116, 132


AUTO DEALERS-FINANCE COMPAN IES 21 8.1 43759

(i) Fraudulent misrepresentation, circumven-tion or concealment through whatsoever sub-terfuge or device of any of the material particu-lars or the nature thereof required hereunder tobe stated or furnished to the retail buyer

(j) Employment of fraudulent devices, meth-ods or practices in connection with compliancewith the statutes with respect to the retaking ofgoods under retail instalment contracts and theredemption and resale of such goods.. .

(k) Having indulged in any unconscionablepractice relating to said business .`(m) Having sold a retail instalment contract

to a sales finance company not licensedhereunder

(n) Having violated any law relating to thesale, distribution or financing of mobile homes . .

(7 ) (a) The licensor may without notice denythe application for a license within 60 days afterreceipt thereof' by written notice to the appli-cant, stating the grounds for such denial .Within 30 days after such notice, the applicantmay petition the office of the commissioner oftransportation to conduct a healing to reviewthe denial, and a hearing shall be scheduled withreasonable promptness .

(b) No license shall be suspended or revokedexcept after a hearing thereon . . The licensorshall ; give the licensee at least 5 days' notice ofthe time and place of such hearing . The ordersuspending or revoking such license shall not beeffective until after 10 days' written noticethereof to the licensee, after such hearing hasbeen had ; except that the licensor, when in itsopinion the best interest of the public or thetrade demands it, may suspend a license uponnot less than 24 hours' notice of hearing andwith not less than ' 24 hours' notice of thesuspension of the license . Matters involvingsuspensions and revocations brought before thedepartment shall be heard and decided upon bythe office of" the commissioner oftransportation .

(e)' The licensor may inspect the pertinentbooks, records, letters and contracts of a li-censee : The actual cost of each such examina-tion shall be,paid by such licensee so examinedwithin 30 days after demand therefor by thelicensoc, and the lcensor may `maintain anaction for the recovery of such costs in anycourt of competent jurisdiction :

History: 1971 c 239;'19'13 c 116; 1977 c 29 ss . 13'73,1654 (7) (a), (e); 1981 c 45; 1981 c 347 s 80 (2) ; 1983 a 192„

218.12 Mobile home dealer salesmen regu -lated. (1) No person shall engage in the businessof selling mobile homes to the ultimate con-sumei or to the, retail market in this statewithout a license therefor from the department..If a mobile home dealer acts as a mobile home

218 .14 Warranty and disclosure , . (1) A one-year written warranty is required for every newprimary housing unit sold or leased by a mobilehome manufacturer, dealer or salesperson inthis state, and for every new primary housing:unit.t sold by any person who induces a residentof the state to enter into the transaction bypersonal solicitation in this state or by mail ortelephone solicitation directed to the particularcustomer in thiss state . The warranty shallcontain the following terms:

(a) That the primary housing unit meetsthose standards prescribed by law or adminis-trative rule of'the department of industry, labor'and human relations, which are in effect at thetime ofìts manufacture..

(b) That the primary housing unit is free fromdefects in material and workmanship and isreasonably fit for human habitation if it re-ceives reasonablee care and maintenance as de-fined, by rule of the department of industry,labor and human relations..

(c) i :. That the primary housing unit manu-facturer and dealer shall take corrective actionfor defects which become evident within oneyear from the delivery date and as to which, the

salesman the dealer shall secure a mobile homesalesman's license in addition to the license forengaging as a mobile home dealer .

(2) Applications for mobile home salesman ' slicense and renewals ther ' eof ' shall be made tothe department on . such forms as the depart-ment prescribes and furnishes and shall beaccompanied by the annual license fee of $4 .The application shall require such pertinentinformation as the department requires. Li-censess shall expire, unless sooner revoked orsuspended,, on December 31 of each year andapplicationn for renewal licenses shall be madeby December . 15 next preceding expiration ofthe current license year .

(3) Every licensee shall carry his license whenengaged in his business and display the sameupon request . The license shall namee his em-ployer, and in case of a change of employer, thesalesmann shall immediately mail his license tothe licensor who shall indorse such change onthe license without charge ,

(5) The provision of s . 218 . : 01 (3) relating tothe denial , suspension and revocation of a mo-tor vehicle salesman's license shall apply to thedenial, suspension and revocation of 'a mobilehome salesman ' s license so far as applicable .

(6) The provisions of s 218 01 (3) (g) and (5)shall applyy to thiss section , mobile home salespractices and the regulation of travel trailer ormobile home salesmen , as far as applicable . .

History : 1973 c It 6 ; 1977 c 29 s . 1654 (7) (a) ; ] 977 c.273 ; 1979 c. 221 .



primary housing unit owner has given notice tothe manufacturer or dealer not later than oneyear and 10 days after the delivery date and atthe address set forth in the warranty ; and thatthe primary housing unit manufacturer anddealer shall make the appropriate adjustmentsand repair s, within 30 days after notification ofthe defect, at the site of the primary housingunit without charge to the primary housing unitowner ' If the dealer makes the adjustment , themanufacturer shall fully reimburse the dealer.

2 If a repair, replacement, substitution oralteration is made under the warranty and it isdiscovered , befo re or after expiration of thewarr anty period, that the repair, replacement,substitution or alteration has not restored theprimary housing unit to the condition in whichit was warranted except for reasonable wearand tear, such failure shall be deemed a viola-tion ofthe warranty and the primary housingunit shall be restored to the condition in whichit was warranted to be at the time of the saleexcept for reasonable wear and tear, at no costto thee purchaser or his assignee notwithstand-ing that the addi tional repair may occur afterthe expiration ofthe warranty period .

(d) That if during any period of time afternotification of a defect , the primary housingunit' is uninhabitable , as defined by rule of thedepartment of industry , labor and human rela-tions , that period of time shall not be consideredpart of the one-year' warranty period .

(e) A list of all parts and equipment notcovered by the warranty.

(2) Action by a lessee to enforce his rightsunder this subchapter shall not be grounds fortermination of the rental agreement .

(3) The warranty required under this sectionshall apply to the manufacturer of " . the primaryhousing unit as well as to the dealer who sells orleases the primary housing unit to the customer,and shall be in addition to any other rights andprivileges which the customer may have underany instrument or law , ; The waiver of anyremedies under any lawand the waiver , exclu-sion modification or limitation of any war-ranty, express or implied, including the impliedwarranty of merchantability and fitness for apart i cular purpose,, is expressly prohibited .Any such waiver is unenforceable and void . .

(4) The transfer of a primary housing unitfrom one owner or lessee to another during theeffective period of t he war ranty does not termi-nate the warranty, and subsequent owners orlessees shall be entitled to the full protection ofthe warranty f 'or, the duration of the warrantyperiod as if the original owner or lessee : had nottransferred the primary housing unit .

History: 1973 c 716 ; 1973 c 132 s 5 ; 1973 c 336

218 . 165 Jurisdiction and venue over out - of-state manufacturers . (1) The importation of aprimary housing unit for sale in this state by anout-of-state manufacturer is deemed an irrevo-cable appointment by such out-of-state manu-facturer ofthe secretary of state to be his trueand lawful attorney upon whom may be servedall legal processes in anyy action or proceedingagainstt such manufacturer arising out of theimportation of such primary housing unit intothis state .

(2) The secretary of state upon whom pro-cesses and notices may be served under thissection shall, upon being served with such pro-cess or notice, mail a copyy by registered mail tothe out-of-state manufacturer at the nonresi-dent address given in the papers so served Theoriginal shall be returned with proper certificateof'service attached for filing in court as proof ofservice . The service fee shall be $4 for eachdefendant so served The secretary of state shallkeep a record of all such processes and notices,which record shall show the day and hour ofservice . . .

Histor y: 1973 c 116 ; 1973 c. 132 s 5,

218.17 Penalties . (1 ) Any person who violatesss . 21$ .14 to 218 ..16, or any rule promulgatedunder ss. 218 14 to 218 .16, may be fined notmore than $1,000 or imprisoned for not morethan 6 months,' or both

(2) In any court action brought by the depart-ment ofindustry, labor and human relations forviolations of this subchapter, the departmentmay recover- all costs of testing: and investiga-tion, in addition to costs otherwise recoverable,if it prevails in the action,

(3) Nothing in this subchapter prohibitsthebringing ;of'a civil action against a mobile homemanufacturer, dealer or salesperson by an ag-grieved customer If' judgment is tendered forthe customer based on an act or omission by themanufacturer, dealer or salesperson, whichconstituted a violation of this subchapter, the

218 .15 Sale or lease of used primary hous -ing ' units . In the sale or lease of any usedprimary housing unit, the sales invoice or leaseagreement shall contain the point of manufac-ture of the used primary housing unit, the nameof the manufacturer and the name and addressofthe previous owner .

History: 19'73 c 116 ; 1973 c 132 s 5 .

218 .16 Departmental rules . . The departmentof industry, labor and humann relations shallpromulgate rules and establish standards neces-sary to carry out the purposes of'ss 21814 and218 15 :

Hi story : . 19'73 c . 116


AUTO DEALERS-FINANCE COMPANIES 218 .213761

riess, all of which may be considered by thedepartment in determining the fitness of theapplicant to engage in business as set forth inthis section .

(1m) The department may not require infor-mation relating to the applicant's solvency orfinancial standing if the applicant provides abond' in the amount provided in sub . (4) andunder conditions specified in s . 218,01 (2) (h) .

(2) Application for a motor vehicle salvagedealer's license shall be made upon the formprescribed by the department and shall contain :

(a) The name under which the applicant istransacting business within the state .

(b) The place or places where the business isto be conducted, which must be an establishedplace of business .

(c) Ifthe applicant is a sole-proprietorship,the personal name and address of' the applicant .,

(d) If the applicant is a partnership, the nameand address of each partner . .

(e) If the applicantt is a corporation, thenames and addresses of its princip al officers .

(f) Such other pertinent information as maybe required by the department for the purposeof 'determining the eligibility of the applicant tobe licensed ,.

(3) Every application shall be executed by theapplicant, if an individual, or in the event theapplicant is a partnership or corporation, by apartner or officer thereof'. . Every such applica-tion shall be accompanied by the fee required bylaw.

(4) Unless the applicant furnishes a bond, orother adequate collateral as security , of not lessthan $25,000 under conditions provided by s ..218. 01(2) (h) , every application shall be accom-panied by acurrent financial statement to deter-mine the applicant's solvency as required under-sub,. (1) .

(5) When a motor vehicle' salvage dealer hasan established place : of" business in more thanone municipality in this state , he or she shallmake separate application and submit a sepa-rate license fee remitt ance for each such munici-pality A motor vehicle salvage dealer who failsto apply for, each such separate license may berequired to forfeit not more than $200 .. .

(6) A bond may be required under conditionsas provided by s. 218,01 (2) ( h) .

(7) Any person who knowingly makes a falsestatement in an application for a motor vehiclesalvage dealer license may be fined not morethan $5,000 oc imprisoned not more than 5years or both ..

History: 19'75 c . 288; 1977 c . 29 s. . 1654 (7) (a) ; 1977 c .272, 415, 447; -. 1979 c . 32 ..

See note to 19 ..21, citing 66 Atty .. Gen . .302 ._

218.20 Motor vehicle salvage dealers to belicensed . (1) No person may purchase' andresell motor vehicles for wrecking, : processing,scrapping, recycling, or dismantling purposesand no person may carry on or conduct thebusiness of wrecking, processing, scrapping,recycling, or dismantling any motor vehicle orselling parts thereof' unless licensed to do so bythe department. Any person violating=thissection may be fined not less than $25 nor morethan $200 or imprisoned not more than 60 daysor both

(2) This section shall not apply to :(a) Motor vehicle dealers licensed under s . .

218 .01 (2) who remove, but do not sell, as such,parts of motor vehicles prior to sale of suchvehicles to motor vehicle salvage dealers orscrap metal processors .

(b) `Scrap metal processors and portablescrap metal crushers who accept motor vehiclesfrom only :

1 . . Licensed motor vehicle dealers ;.'2, Licensed motorvehicle salvage dealers ; or3. Municipalities, all of whom shall submit

titles and reports to the department and retainrecords

(c) Any person who acquires a motor vehiclefor salvage purposes for his or her own use andthen sells the remainder to a motor vehiclesalvage dealer or to another person who willfurther- use that motor vehicle for salvage pur-poses for his or her own use before selling it to amotor vehicle salvage dealer .

(d) Collectors of special interest vehicles whopurchase or sell parts cars in compliance with s .341 . .266 .

History: 1 971 c . 4 0; 1975 c : 288 ; 197'7 c . 29 s 1654 ('7) (a) ;1977 c. 415

218 .21 Application for salvage dealer 's li-cense (1) Application for license shall be madeto the department, at such time, in such formand contain: such information as the depart-ment requires and shall be accompanied by therequired fee. Except as provided in sub . (lm),the department may require in the application,or otherwise, information relating to the appli-cant's solvency, financial standing or other per-tinent-matter commensurate with the safe-guarding of the public interest in the locality inwhich the applicant proposes to engage in busi-

plaintiff shall recover actual and proper ' attor-ney's fees in addition to costs otherwiserecoverable .

History: 1973 c 116 .

SUBCHAPTER VII

MOTOR VEHICLE SALVAGE DEALERS


21 8 .22 AUTO DEALERS-F INANCE COMPANIES 3762

218 .22 When department to license salvagedealers. (1 ) The department shall issue a licenseto the applicant for a motor vehicle salvagedealer's license upon the receipt of a properlycompleted application form accompanied by afee of $75, upon being satisfied that the appli-cant is financially solvent or that the applicanthas furnished a bond, or other adequate collat-eral as security, of not lesss than $25,000 underconditions provided by s : 218 .01 (2) (h), and ofgood character and :

(a) If' the application is for renewal of anexisting license, upon being satisfied that theapplicant has complied with and will complywith this subchapter;`'(b) If'the application is for an original license,

upon being satisfied that :I The applicant will comply with this sub.-

chapter; and2. The proposed site or operation will comply

with all laws, the rules promulgated by thedepartment and the locally applicable zoning orpermit requirements, before beginning opera-tions, including all laws, rules and local require-ments.alteady enacted as promulgated as of'the:date of application and scheduled to take effectat a later date . .

(2) A motor vehicle salvage dealer's licenseentitles the licensee to carry on and conduct thebusiness of a motor vehicle salvage dealer dur-ing the calendar year in which the license isissued .. Such license expires on December 31 ofthe calendar year for which it was issued andmay be renewedd upon application therefor andupon paymentt of the annual license fee of $75 .

(2m) License fees collected under this sub-chapter shall be deposited in the transportationfund

(3) The department may deny, suspend orrevoke a license on any of the followinggrounds :

(a) Proof of unfitness . .(b) Material misstatement in application for

license(c) Filing a materially false or fraudulent

income tax return as certified by the departmentof revenue;

(d) Wilful failure to comply with any provi-sion of this section or any rule promulgated bythe department under this section .

(e) Wilfully defrauding any retail buyer to thebuyer's damage

(f) Wilful failure to perform any writtenagreement with any retail buyer .

(g) Failure or refusal to furnish and keep inforce any bond required ..

(h) Having made a fraudulent sale, transac-tion or repossession .

(i) Fraudulent misrepresentation; circumven-tion or concealment through whatsoever sub-terfuge or device of'any of the material particu-lars or the nature thereof required hereunder tobe stated or furnished to the retail buyer .

(j) Employment of fraudulent devices, meth-ods or practices in connection with compliancewith the statutes with respect to the retaking ofgoods under retail instalment contracts and theredemption and resale of such goods . .

(k) . Having indulged in any unconscionablepractice relating to said business ..

(1) Having charged interest in excess of 16 percent per year .

(m) Having sold a retail instalmentt contractto a sales finance company not licensed under s .

21801 (n) Having violated any law relating to thesale ; distribution or financing of salvaged parts .

(o) Failure to comply with this subchapter,(4) PROCEDURE IN DENIAL , SUSPENSION OR

xEVOCnriorr; (a)-,The licensor may without no-tice denyy the application for a license within 60days after receipt thereofby written notice tothe applicant,- stating the grounds for suchdenial . Within 30 days after such notice, theapplicant may petition the office of the commis-sioner of transportation to conduct a hearing toreview the denial, and a hearing shall, be sched-uled with reasonable promptness

(b) No license shall be suspended or revokedexceptt after a hearing thereon . The licensorshall give the licensee at least 5 days' notice ofthe time andd place of such hearing . The ordersuspending or revoking such license shall not beeffective until after 10 days' written, noticethereof' to the licensee, after such heaing hasbeen had ; except that the licensor; when in itsopinion; the best interest of the public' or thetrade demands it, may suspendd a license uponnot less than 24 hours' notice of hearing andwith not less than 24 hours' notice of thesuspension of the license : Matters involvingsuspensions and revocations brought before thedepartment shall be heard and decided upon bythe office of the commissioner oftransportation .

(c) The licensor may inspect the pertinentbooks, records, letters and contracts of a li-censee . The actual cost of each such examina-tion shall be paid by such licensee so examinedwithin 30 days: after demand therefor by thelicensor, and the licensor may maintain anaction for -the recovery of such costs, in anycourt of competent jurisdiction . .

(5) No salvage dealer licensed under ss .218,20 to 218,23 shall be licensed as a dealerunder, s . 218 .:01 (2) at his salvage dealer location,provided that nothing herein shall prohibit li-censing and transacting of both businesses at


3763 AUTO DEALERS-FINANCE COMPANIES 21 8.32

218 .23 Licensee to maintain records ; sale ofvehicles by licensee . (1) Wheneverr a licensedmotor vehicle salvage dealer acquires a motorvehicle for the purpose of'wrecking it, the dealershall mail or deliver the certificate of title or ifthe transfer to the salvage dealer wass by a bill ofsale, the bill of sale, for such vehicle to thedepartment within 30 days after the vehicle isdelivered to the salvage yard unless the previousowner already has done so If he or she subse-quently wishes to transfer such vehicle to an-other pet-son, he or she shall make such transferonly by 6i11_ of sale . In such bill of sale, he or sheshall describe the vehicle and shall state that thecertificate of title for the vehicle has been mailedor delivered to the department because thevehicle was to have been junked .

(2) Every licensed motor vehicle salvagedealer shall maintain a record of every vehiclewhich is bought or otherwise acquired andwrecked by the salvage dealer, which recordshall state the name and address of the personfrom whom such vehicle was acquired and thedate thereof'. The record shall be in the formprescribed by the department .

(3) Any person violating this section may befined not less than $25 nor more than $200 orimprisoned not more than 60 days or both . .

History : 19'71 c. 164 s 83 ; 19'75 c 288 ; 1977 a 29 s, 1654(7) (a) ; 19 7 7 c 273

218 .24 Salvage dealer license number dis-played on trucks and truck-tractors. (1) Eachmotor vehicle salvage dealer licensed under thissubchapter shall prominently display his or hersalvagee dealer license number on both sides ofeach truck or truck-tractor owned by suchdealer andd operated for hauling, towing orpushing salvage vehicles

( 2) The letters "DMV SAL" shall be placeddirectly ahead of the assigned license certificatenumber:. .

(3) The markings required by thiss sectionshall be not lesss than 2 inches in height and notless than one-fourth inch brush stroke, and insharp color contrast to the background onwhich it is applied Such identification shall bemaintained in such manner as to remain legiblewhile the vehicle is in operation .

( 4) Any person violating this section may befined not less than. $25 nor more than $200 orimprisoned not more than 60 days or both ..

Histor y: 1975 c 288 .

MOTOR VEHICLE AUCTION DEALERS

218 .30 Motor vehicle auction dealers to belicensed. No person shall carry on or conductthe business of auctioning motor vehicles atwholesale unless licensed to do so by the depart-ment Any person violating this section maybefined not less than $25 nor more than $200 orimprisoned not more than 60 days, or both .History : 19 71 c 40; 1977 c . 29 s 1654 (7) (a),

218 .31 Application for auction dealer ' s li -cense. ( 1) Application for a motor vehicleauction dealer's license shall be made upon theform prescribed by the department and shallcontain :

(a) The name and address of the applicant(b) When the applicant is a partnership, the

name and address of each partner .(c) When the applicant is a corporation, the

names of" the principal officers of the corpora-tion and the name of the state in whichincorporated ;

(d) The place or places where the business isto be conducted and the nature of the business ..

(e) Such other pertinent information as maybe required by the department for' the purposeof determining the eligibility of the applicant tobe licensed .

(2 ) Every application shall be executed by theapplicant, if' an individual, or in the event theapplicant is a partnership or corporation, by apartner or officer thereof. Every such applica-tion shall be accompanied by the fee required bylaw.,'

History : 1977 c 29 s . 1654 (7) (a)

218 .32 : When department to license auctiondealer . (1) The department shall issue a license

the same location where the salvage operationsarephysically separated .

History: 1975 c 288 ; 1977 c 29 ss, 1373m, 1374, 1 654 (7)(a), (e) ; 1977 c . 415; 1979 c 110 s 60 (13) ; 1981 c 347 s. 80 (2);1983 a 192 .

218 .25. Rules. The department shall makeruless under ch . 227 and establish the standardsnecessary to carry out the purposes of thissubchapter and to provide for the orderly oper-ation of motor vehicle salvage sites .

History: 1975 c 288 ; 1977 c 29 s 165 4 (7) (a) .

218 . 26 Transition provision . The departmentshall not deny, suspend or revoke the license ofa motor vehicle salvage dealer for violation ofany rule promulgated by the department whichrequires the fencing of'existing salvage dealers'operations or requires the upgrading of orhigher standards for salvage dealer s' operationsprior to January 1, 1.979, if', as of July 1, 1975,such salvage dealer was the holder of a validlicense issued under this subchapter .

Hi story : 1975 c 288 ; 1977 c 29 s 1654 (7) (a)

SUBCHAPTER VIII


218.32 AUTO' DEALERS-FINANCE COMPANIES 3764

certificate to the applicant for a motor vehicleauction dealer's license: upon receipt of a prop-erly completed application form accompaniedby a fee of $50 and upon being satisfied that theapplicant is of' good character and that , so farcescan be ascertained, the applicant has compliedwith and will comply with the laws of ' this statewith reference to ss . 21 '8 . 30 to 218 .' 33 .

(2) A motor vehicle auction dealer's licenseentitles the licensee to carry on and conduct thebusiness of a motor °vehicle auction dealer dur-ing the calendar year in which the license isissued . Such license expires on December 31 ofthe calendar year for which it was issued andmay be renewed upon application therefor andupon payment of the annual license fee of $50 .

(3) The department may deny, suspend orrevoke a license on the following grounds :

(a) Proof of unfitness . .(b) Material misstatement in application for

license .(c) Filing a materially false or fraudulent

income tax return as cextifiedby the departmentof revenue.

(d) , Wilful failure to complyy with any provi-sion of this section or any rule promulgated bythe department under this section .

(e) Wilfully defrauding any retail buyer , to thebuyer's damage . .

(f) Wilful failure to perform any writtenagreement with any retail buyer . .

(g) Failure or refusal too furnish and keep inforce any bond required .

(h) Having made a f r audulent sale, transac-tion or repossession .

(i) Fraudulent misrepresentation, circumven-tion or concealment through whatsoever sub-terfugeoc device of'any of the material particu-lars or the nature thereof required hereunder tobe stated or furnished to the retail buyer ,

(j) Employment-:of' fraudulent devices, meth-ods or practices in, connection, with compliancewith the statutes with respect to the retaking ofgoods under retail instalment contracts and theredemption and resale of such goods . . .

(k) Having indulged in any unconscionablepractice relating to, said business

(1) Having charged interest in excess of 15 per-cent per year .

(m) Having sold a retail instalment contractto a sales finance company nott licensedhexeunder.

(n) Having violated any law relating to thesale , distribution or financing of 'motor vehicles,

(o) Failure to comply with ss 218 .. .30 to218 , . .3 .3 „

(4) (a) The licensor may without notice denythe application for a license within 60 days afterreceipt thereof by written notice to the appli-

cant, stating the grounds for such denial .Within 30 days after such notice, the applicantmay petition the office of the commissioner oftransportation to conduct a hearing to reviewthe denial, and a hearing shall be scheduled withreasonable promptness .

(b) No license shall be suspended or revokedexcept after a hearing thereon . The licensorshall give the licensee at least 5 days' notice ofthe time and place of such hearing The ordersuspending or revoking such license shall not beeffective until after 10 days' written noticethereof' to the licensee, after such hearing hasbeen had; except that the licensor, when in itsopinion the best interest of the public or thetrade demands it, may suspend a license uponnot less than 24 hours' notice of hearing andwith not less than 24 hours' notice of thesuspension of the license., Matters involvingsuspensions and revocations broughtt before thedepartment shall be heard and decided upon bythe of'f'ice of` the commissioner oftransportation,

(e) The licensor may inspect the pertinentbooks, records, letters and contracts of a li-censee. The actual cost of each such examina-tion shall be paid by such licensee so examinedwithin 30 days after demand therefor by thelicensor ; and the licensor may maintain anaction for the recovery of' such costs in anycourt of competent juii5diction .Histo ry: 1977 c. 29 ss . 1375, 1654 (7) (a), (e); 1977 c 273;

1979 c 110 s . . 60 (13); .1981 c 347 s 80 (2) ; 1983 a 192'..

218 .33 Motor vehicle auction dealer to bebonded ; conduct of auction business. (1) Eachlicensee under s . 218 32 shall furnish and main-tain a corporate surety bond in the amount of$25,000 in such form as the department ap-proves, conditioned upon the licensee's comply-ing with the laws applicable to the licensee andas indemnity for- anyy loss sustained by anyperson by reasonn of acts of the licensee consti-tuting grounds for refusal or revocation of'theauction dealer's license . : The bond shall run tothe state of Wisconsin forr the benefit of ag-grieved parties but the aggregate liability of thesurety for- all such parties shall not exceed theamount of said bond . .

(2) The following rules shall govern theconduct of motor vehicle auction sales :" (a) Sales of motor, vehicles shall be confinedto those offered by licensed motor vehicle deal-ers and shall be `sold only to licensed motorvehicle dealers ..'

(b) Every motor vehicle offered for sale shallbe sold with the understanding that a clear titlewill be furnished, or in lieu of such an agree-ment, the obtaining of title insurance on eachmotor vehicle sold. A dealer's reassignment


AUTO DEALERS-FINANCE COMPAN IES 21 8.413765

(3) A license may be denied , suspended orrevoked on any of the following grounds :

(a) Proof' of unfitness of applicant(b) Material misstatement in applic ation for

license .(c) Filing a materially false or fraudulent

income tax return as certified by the departmentof revenue

(d) Wilful failure to comply with any provi-sion of" this section or any rule or regulationpromulgated by the department under thissection .

(e) Wilfully defrauding any ret ail buyer to thebuyer 's damage . .

(f) Wilful failure to perform an y writtenagreement with any retail buyer . .

(4) The department may without notice den ythe application for a license within 30 days afterreceipt thereof' by wri t ten notice to the appli-cant, stating the grounds for such denial Uponrequest by the applicant whose license ha s beenso denied , the office of the commissioner oftransportation shall set the time and place ofhearing a review of such denial, the s ame to beheard with reasonable promptness .

(5) (a) No license may be suspended orrevoked except after a hearing thereon .

(b) Except as provided in par (c) , the officeof the commissioner of transportation shall givethe licensee at least 5 days' notice of the timeand place of the hearing .. The order suspendingor revoking the license shall not be effectiveuntil after 10 days ' written notice thereof to thelicensee , after the hearing has been had . .

(c) When the department finds that the bestinterest of ' the public or the trade demands suchaction , the department may suspend a licenseupon not less than 24 hours' notice of hearingand with not less than 24 hours' notice of thesuspension of the license .

(6) The department may inspect the perti-nent books , records , letters and contracts of 'alicensee . The actual cost of each such examina-tion shall be paid by the licensee so examinedwithin 30 days after demand therefor by thedepartment, and the department may maintainan action for the recovery of the costs in anycourt of competent jurisdiction

(7) If a licensee is a firm or corporation , itshall be sufficient cause for the denial , suspen-sion or revocation of a license that any officer,director or trustee of the firm or corporation, orany member in case of a partnership , has beenguilty of any act or omission which would because for refusing, suspending or revoking alicense to the party as an individual.. Eachlicensee shall be responsible fbr the acts of anyor all salespersons while acting as the licensee ' sagent, if ' the licensee approved of or had knowl-

218 .41 Moped dealers regulated . (1) No per-son may engage in the business of sellingmopeds in this state without a license thereforas provided in this section ..

(2) (a) Application for license shall be madeto the department at such time and in suchform, and containing such information, as thedepartment requires .

(b) The application shall be accompanied bythe required fee, which shall not exceed $50 .

(c) The department may require in such ap-plication, or otherwise, information relating tothe applicant'ss solvency, financial standing orother pertinent matter, commensurate with thesafeguarding of the publ ic interest in the localityin which the applicant proposes to engage inbusiness, all of which may be considered by thedepartment in determining the fitness of theapplicant to engage in business as set forth inthis section .

(d) All licenses shall be granted or refusedwithin 30 days after application therefor, andshall expire, unless sooner revoked or sus-pended, on December 31 of the calendar yearfor which they are granted .

(e) Each license shall specify the location ofthe office or branch for which it is issued andmust be available for inspection there . In casesuch location is changed ;, the department shallendorse the change of location on the licensewithout charge if' it is within the same munici-pality . A change of license to another munici-pality shall require a new license .e

form shall be filed on each motor vehicle sold atthe auction .

(c) Payment for motor vehicles bought andsold shall be made immediately after sale :

(3) Any person violating this section may befined not less than $25 nor more than $200 orimprisoned not more than 60 days , or both

History : 1977 c . 29 s 1654 (7) (a); 1977 c 273 .

SUBCHAPTER IX

MOPED DEALERS

218 . 40 Definitions. In this subchapter :(1) "Department" means the department of

transportation(2) "Moped" has the meaning designated in

s. 340 .01 (29m) .(3) "Moped dealer" means any person, firm

or corporation, who is engaged wholly or inpart in thee business of selling mopeds .. Pro-vided, however, that a person, firm or corpora-tion who is also a motorr vehicle dealer under s .218.01 shall be governed and regulated by theprovisions of s . 218 .01 and not this section ..

Histor y : 1977 c. 288 ; 198 1 c 20 .



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 afrom 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 ofof the commissioner of transportation may the convicted licensee .ehave a review thereof' as provided in ch . 22'7 ..

Hi story: 1977 c 288; 1981 c 347 s 80 (2) (2) The license issued to any convicted. . .licensee shall be surrendered to any police of=

218.42 Examination by department . No li- ficer upon direction of the department withoutcensee 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 sectionprovided in s . 218 41 (6). may not be renewed for 12 months . _

His tory : 1977 c 288 History: 1 977 c 288 .


Documents

CHAPTER 218docs.legis.wisconsin.gov/document/statutes/1983/218.pdfCHAPTER 218 FINANCE COMPANIES, ... 21824 Salvage dealerl icense number displayed on trucks and truck-tractors