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SB225-SSA1,9,65 5. The extent and quality of the dealer's service under recreational vehicle
6warranties.
SB225-SSA1,9,97 6. The failure to follow agreed-upon, reasonable procedures or standards
8related to the overall operation of the dealership consistent with the law and the
9dealer agreement.
SB225-SSA1,9,1010 7. The dealer's performance under the terms of its dealer agreement.
SB225-SSA1,9,1311 (c) 1. Except as provided in this paragraph, a manufacturer or distributor shall
12provide a dealer with at least 120 days' prior written notice of termination,
13cancellation, or nonrenewal of a model, line-make, or entire dealer agreement.
SB225-SSA1,9,2314 2. The notice under subd. 1. shall state all reasons for the proposed termination,
15cancellation, or nonrenewal and shall state that if, within 30 days following receipt
16of the notice, the dealer provides to the manufacturer or distributor a written notice
17of intent to cure all claimed deficiencies, the dealer will then have 120 days following
18receipt of the notice to rectify the deficiencies. If the deficiencies are rectified within
19120 days, the manufacturer's or distributor's notice is voided. If the dealer fails to
20provide the notice of intent to cure the deficiencies in the prescribed period, the
21termination, cancellation, or nonrenewal takes effect 30 days after the dealer's
22receipt of the notice unless the dealer has new and untitled inventory on hand that
23may be disposed of as provided under sub. (3).
SB225-SSA1,9,2524 3. The notice period under subd. 1. may be reduced to 30 days if the grounds
25for termination, cancellation, or nonrenewal are due to any of the following:
SB225-SSA1,10,1
1a. A dealer or one of its owners being convicted of a felony.
SB225-SSA1,10,42 b. The abandonment or closing of the business operations of the dealer for 10
3consecutive business days unless the closing is due to an act of God, strike, labor
4difficulty, or other cause over which the dealer has no control.
SB225-SSA1,10,65 c. A significant misrepresentation by the dealer materially affecting the
6business relationship.
SB225-SSA1,10,87 d. A suspension of, revocation of, or refusal to renew the dealer's license by the
8department.
SB225-SSA1,10,119 4. The notice provisions of this paragraph do not apply if the reason for
10termination, cancellation, or nonrenewal is insolvency, the occurrence of an
11assignment for the benefit of creditors, or bankruptcy.
SB225-SSA1,10,17 12(2) A dealer may terminate, cancel, or fail to renew a model, line-make, or
13entire dealer agreement with a manufacturer or distributor with or without good
14cause at any time by giving 30 days' written notice to the manufacturer. If the
15termination, cancellation, or nonrenewal is for good cause, the dealer has the burden
16of showing good cause. Any of the following items, among others, may be deemed
17good cause for the proposed action by a dealer:
SB225-SSA1,10,1818 (a) A manufacturer being convicted of a felony.
SB225-SSA1,10,2119 (b) The business operations of the manufacturer have been abandoned or closed
20for 10 consecutive business days, unless the closing is due to an act of God, strike,
21labor difficulty, or other cause over which the manufacturer has no control.
SB225-SSA1,10,2322 (c) A significant misrepresentation by the manufacturer materially affecting
23the business relationship.
SB225-SSA1,10,2524 (d) A material violation of this subchapter that is not cured within 30 days after
25written notice by the dealer.
SB225-SSA1,11,2
1(e) A declaration by the manufacturer of insolvency, the occurrence of an
2assignment for the benefit of creditors, or bankruptcy.
SB225-SSA1,11,43 (f) A manufacturer's material violation of the dealer agreement that is not
4cured within 120 days after written notice by the dealer.
SB225-SSA1,11,55 (g) Manufacturer coercion of the dealer under s. 218.166.
SB225-SSA1,11,76 (h) Manufacturer violation of area of sales responsibility protections or
7allowing other dealers to violate these protections.
SB225-SSA1,11,11 8(3) If the dealer agreement is terminated, canceled, or not renewed by the
9dealer for good cause, the manufacturer shall, at the election of the dealer and within
1045 days after termination, cancellation, or nonrenewal, repurchase all of the
11following:
SB225-SSA1,11,2312 (a) All new, untitled recreational vehicles that were acquired from the
13manufacturer or distributor within 18 months before the date of the notice of
14termination, cancellation, or nonrenewal that have not been used, except for
15demonstration purposes, and that have not been altered or damaged, at 100 percent
16of the net invoice cost, including transportation, less applicable rebates and
17discounts to the dealer. If any of the recreational vehicles repurchased is damaged,
18the amount due to the dealer shall be reduced by the cost to repair the damaged
19recreational vehicle. Damage prior to delivery to the dealer will not disqualify
20repurchase under this subsection. Any repurchased recreational vehicle must be
21paid for in full before the recreational vehicle is removed from the dealer's premises.
22Upon payment under this paragraph, recreational vehicles must be immediately
23surrendered to the manufacturer.
SB225-SSA1,12,324 (b) All undamaged accessories or proprietary parts sold to the dealer for resale
25within the 12 months prior to termination, cancellation, or nonrenewal, if

1accompanied by the original invoice, at 105 percent of the original net price paid to
2the manufacturer or distributor to compensate the dealer for handling, packing, and
3shipping the parts.
SB225-SSA1,12,104 (c) Any properly functioning diagnostic equipment, special tools, current
5signage, or other equipment and machinery at 100 percent of the dealer's net cost
6plus freight, destination, delivery, and distribution charges and sales taxes, if any,
7if the equipment, tools, signage, or machinery was purchased by the dealer within
85 years before termination, cancellation, or nonrenewal and upon the
9manufacturer's or distributor's request and can no longer be used in the normal
10course of the dealer's ongoing business.
SB225-SSA1,12,14 11(4) If a dealer agreement is terminated, canceled, or not renewed by the
12manufacturer or distributor without good cause in violation of sub. (1), the
13manufacturer or distributor shall repurchase dealer recreational vehicles,
14accessories, and other equipment in the manner provided in sub. (3).
SB225-SSA1,12,17 15(5) (a) A dealer is not prohibited from selling any remaining in-stock inventory
16of a particular model or line-make after a dealer agreement has been terminated,
17cancelled, or not renewed by the manufacturer.
SB225-SSA1,12,2218 (b) If recreational vehicles of a model or line-make subject to a terminated
19agreement are not repurchased or required to be repurchased by the manufacturer
20or distributor, the dealer may continue to sell recreational vehicles that are subject
21to the terminated dealer agreement and are currently in stock until those
22recreational vehicles are no longer in the dealer's inventory.
SB225-SSA1,13,2 23(6) When taking on an additional line-make, a dealer shall notify in writing
24any manufacturer with whom the dealer has a dealer agreement of the same

1line-make at least 30 days prior to entering into a dealer agreement with the
2manufacturer of the additional line-make.
SB225-SSA1,26 3Section 26. 218.163 of the statutes is created to read:
SB225-SSA1,13,11 4218.163 Transfer of ownership. (1) If a dealer desires to make a change in
5ownership by the sale of business assets, stock transfer, or otherwise, the dealer shall
6give the manufacturer or distributor written notice at least 10 business days before
7the closing, along with all supporting documentation as may be reasonably required
8by the manufacturer or distributor to determine if an objection to the sale may be
9made. In the absence of a breach by the selling dealer of its dealer agreement or this
10subchapter, the manufacturer or distributor may not object to the proposed change
11in ownership unless any of the following applies to the prospective transferee:
SB225-SSA1,13,1312 (a) The transferee has previously been terminated for cause by the
13manufacturer.
SB225-SSA1,13,1514 (b) The transferee has been convicted of a felony or any crime of fraud, deceit,
15or moral turpitude.
SB225-SSA1,13,1616 (c) The transferee lacks any license required by law.
SB225-SSA1,13,1817 (d) The transferee does not have an active line of credit sufficient to purchase
18a manufacturer's product.
SB225-SSA1,13,2119 (e) The transferee has undergone in the last 10 years bankruptcy, insolvency,
20a general assignment for the benefit of creditors, or the appointment of a receiver,
21trustee, or conservator to take possession of the transferee's business or property.
SB225-SSA1,14,2 22(2) If a manufacturer or distributor objects to a proposed change in ownership,
23the manufacturer or distributor shall give written notice of its reasons to the dealer
24within 7 business days after receipt of the dealer's notification and complete
25documentation. The manufacturer or distributor has the burden of proof with regard

1to its objection. If the manufacturer or distributor does not give timely notice of its
2objection, the change, sale, or transfer shall be approved.
SB225-SSA1,14,10 3(3) (a) A manufacturer or distributor shall provide a dealer an opportunity to
4designate, in writing, a family member as a successor to the dealership in the event
5of the death, incapacity, or retirement of the dealer. A manufacturer or distributor
6may not prevent or refuse to honor the succession unless the manufacturer or
7distributor has provided to the dealer written notice of its objections within 10
8business days after receipt of the dealer's modification of the dealer's succession
9plan. In the absence of a breach of the dealer agreement, the manufacturer may
10object to the succession only for any of the following reasons:
SB225-SSA1,14,1211 1. Conviction of the successor of a felony or any crime of fraud, deceit, or moral
12turpitude.
SB225-SSA1,14,1313 2. Bankruptcy or insolvency of the successor during the past 10 years.
SB225-SSA1,14,1514 3. Prior termination by the manufacturer of the successor for breach of a dealer
15agreement.
SB225-SSA1,14,1716 4. The lack of an active line of credit for the successor sufficient to purchase the
17manufacturer's product.
SB225-SSA1,14,1818 5. The lack of any license for the successor required by law.
SB225-SSA1,14,2219 (b) The manufacturer or distributor has the burden of proof regarding its
20objection. A family member may not succeed to a dealership if the succession
21involves, without the manufacturer's or distributor's consent, a relocation of the
22business or an alteration of the terms and conditions of the dealer agreement.
SB225-SSA1,27 23Section 27. 218.164 of the statutes is created to read:
SB225-SSA1,14,25 24218.164 Warranty obligation. (1) Each warrantor shall do all of the
25following:
SB225-SSA1,15,3
1(a) Specify, in writing, to each of the warrantor's dealers, the dealer's
2obligations, if any, for preparation, delivery, and warranty service on the warrantor's
3products.
SB225-SSA1,15,54 (b) Compensate the dealer for warranty service performed by the dealer that
5is covered by the warrantor's own warranty.
SB225-SSA1,15,136 (c) Provide the dealer with the schedule of compensation to be paid and the time
7allowances for the performance of any work and service. The schedule of
8compensation shall include reasonable compensation for diagnostic work as well as
9warranty labor. If the schedule of compensation required by this paragraph does not
10include a particular repair, the warrantor shall reimburse the dealer for warranty
11service for the actual time expended unless the warrantor demonstrates that the
12actual time was not reasonable. If the warrantor demonstrates that the actual time
13was not reasonable, the dealer shall be paid a reasonable sum.
SB225-SSA1,15,18 14(2) Time allowances for the diagnosis and performance of warranty labor shall
15be reasonable for the work to be performed. The compensation of a dealer for
16warranty labor may not be less than the lowest retail labor rate actually charged by
17the dealer in the ordinary course of business for like nonwarranty labor as long as
18the rate is reasonable.
SB225-SSA1,16,2 19(3) The warrantor shall reimburse the dealer for any warranty part at actual
20wholesale cost plus a minimum 30 percent handling charge and the cost, if any, of
21freight to return such part to the warrantor. If a part is sent to the dealer at no cost,
22the dealer is entitled to payment of 30 percent of the wholesale cost of the part from
23warrantor as a handling charge. The maximum handling charge for a part shall not
24exceed $300. If the warrantor requires the dealer to return a warranty part,

1accessory, or complete component, the warrantor shall reimburse the dealer the cost
2of freight to return the part, accessory, or component.
SB225-SSA1,16,7 3(4) Warranty audits of dealer records may be conducted by the warrantor on
4a reasonable basis, and dealer claims for warranty compensation may not be denied
5except for cause, including performance of nonwarranty repairs, material
6noncompliance with the warrantor's published policies and procedures, lack of
7material documentation, fraud, or misrepresentation.
SB225-SSA1,16,9 8(5) A dealer shall submit warranty claims within 45 days after completing
9work.
SB225-SSA1,16,12 10(6) A dealer shall notify the warrantor as soon as is reasonably possible,
11verbally or in writing, if the dealer is unable or unwilling to perform material or
12repetitive warranty repairs.
SB225-SSA1,16,16 13(7) A warrantor shall disapprove warranty claims in writing within 45 days
14after the date of submission by the dealer in the manner and form prescribed by the
15warrantor. Claims not specifically disapproved in writing within 45 days shall be
16construed to be approved and must be paid within 60 days.
SB225-SSA1,16,17 17(8) No warrantor may do any of the following:
SB225-SSA1,16,1918 (a) Fail to perform any of its warranty obligations with respect to its warranted
19products.
SB225-SSA1,17,220 (b) Fail to include, in written notices of factory campaigns to recreational
21vehicle owners and dealers, the expected date by which necessary parts and
22equipment, including tires and chassis or chassis parts, will be available to dealers
23to perform the factory campaign work. A warrantor may ship parts to the dealer to
24affect the factory campaign work, and, if parts provided are in excess of the dealer's

1requirements, the dealer may return unused parts to the warrantor for credit after
2completion of the campaign.
SB225-SSA1,17,53 (c) Fail to compensate any of its dealers for authorized repairs effected by the
4dealer of merchandise damaged in manufacture or transit to the dealer if the carrier
5is designated by the warrantor, factory branch, distributor, or distributor branch.
SB225-SSA1,17,86 (d) Fail to compensate any of its dealers for authorized warranty service in
7accordance with the time allowances set forth in the schedule of compensation under
8sub. (1) (c) if performed in a timely and competent manner.
SB225-SSA1,17,119 (e) Intentionally misrepresent in any way to purchasers of recreational
10vehicles that warranties with respect to the manufacture, performance, or design of
11the vehicle are made by the dealer as warrantor or co-warrantor.
SB225-SSA1,17,1312 (f) Require the dealer to make warranties to customers in any manner related
13to the manufacture of the recreational vehicle.
SB225-SSA1,17,14 14(9) No dealer may do any of the following:
SB225-SSA1,17,1615 (a) Fail to perform predelivery inspection functions, as specified by the
16warrantor, in a competent and timely manner.
SB225-SSA1,17,2017 (b) Fail to perform warranty service work authorized by the warrantor in a
18reasonably competent and timely manner on any transient customer's vehicle of the
19same line-make unless the dealer determines that the customer is acting in a
20manner detrimental to its business.
SB225-SSA1,17,2221 (c) Fail to track actual time expended to perform warranty work not governed
22by time allowances in the schedule of compensation under sub. (1) (c).
SB225-SSA1,17,2323 (d) Claim an agency relationship with the warrantor or manufacturer.
SB225-SSA1,17,2424 (e) Misrepresent the terms of any warranty.
SB225-SSA1,18,2
1(10) Notwithstanding the terms of any dealer agreement, all of the following
2apply:
SB225-SSA1,18,113 (a) A warrantor shall indemnify, defend, and hold harmless its dealer against
4any losses or damages to the extent such losses or damages are caused by the
5negligence or willful misconduct of the warrantor. A dealer may not be denied
6indemnification or a defense for failing to discover, disclose, or remedy a defect in the
7design or manufacturing of the recreational vehicle. A dealer shall provide to the
8warrantor a copy of any suit in which allegations are made under this section within
910 days after receiving the suit. This paragraph shall continue to apply even after
10the recreational vehicle is titled. Indemnification shall include court costs,
11reasonable attorney fees, and expert witness fees incurred by the dealer.
SB225-SSA1,18,1812 (b) A dealer shall indemnify, defend, and hold harmless its warrantor against
13any losses or damages to the extent such losses or damages are caused by the
14negligence or willful misconduct of the dealer. The warrantor shall provide to the
15dealer a copy of any suit in which allegations are made under this section within 10
16days after receiving the suit. This paragraph shall continue to apply even after the
17recreational vehicle is titled. Indemnification must include court costs, reasonable
18attorney fees, and expert witness fees incurred by the warrantor.
SB225-SSA1,28 19Section 28. 218.165 of the statutes is created to read:
SB225-SSA1,18,25 20218.165 Inspection of recreational vehicles. (1) Whenever a new
21recreational vehicle is damaged prior to transit to the dealer or is damaged in transit
22to the dealer when the carrier or means of transportation has been selected by the
23manufacturer or distributor, the dealer shall notify the manufacturer or distributor
24of the damage within the time frame specified in the dealer agreement and do any
25of the following:
SB225-SSA1,19,2
1(a) Request from the manufacturer or distributor authorization to replace the
2components, parts, and accessories damaged or otherwise correct the damage.
SB225-SSA1,19,33 (b) Reject the vehicle within the time frame set forth in sub. (4).
SB225-SSA1,19,7 4(2) If a manufacturer or distributor refuses or fails to authorize repair of
5damage described under sub. (1) within 10 days after receipt of notification under
6sub. (1) or if the dealer rejects the recreational vehicle because of damage, ownership
7of the new recreational vehicle reverts to the manufacturer or distributor.
SB225-SSA1,19,10 8(3) A dealer shall exercise due care in custody of a damaged recreational
9vehicle, but the dealer shall have no other obligations, financial or otherwise, with
10respect to that recreational vehicle.
SB225-SSA1,19,13 11(4) The time frame for inspection and rejection by the dealer shall be part of
12the dealer agreement and may not be less than 2 business days after the physical
13delivery of the recreational vehicle.
SB225-SSA1,29 14Section 29. 218.166 of the statutes is created to read:
SB225-SSA1,19,18 15218.166 Coercion. (1) In this section, “coerce” includes threatening to
16terminate, cancel, or not renew a dealer agreement without good cause or
17threatening to withhold product lines or delay product delivery as an inducement to
18amending the dealer agreement.
SB225-SSA1,19,20 19(2) A manufacturer or distributor may not coerce or attempt to coerce a dealer
20to do any of the following:
SB225-SSA1,19,2121 (a) Purchase a product that the dealer did not order.
SB225-SSA1,19,2222 (b) Enter into an agreement with the manufacturer or distributor.
SB225-SSA1,19,2323 (c) Take any action that is unfair or unreasonable to the dealer.
SB225-SSA1,20,3
1(d) Enter into an agreement that requires the dealer to submit its disputes to
2binding arbitration or otherwise waive rights or responsibilities provided under this
3subchapter.
SB225-SSA1,20,54 (e) Forego exercising a right authorized by a dealer agreement or any law
5governing the manufacturer-dealer relationship.
SB225-SSA1,20,7 6(3) A dealer bears the burden of proof regarding the prohibited acts described
7in sub. (2).
SB225-SSA1,30 8Section 30. 218.167 of the statutes is created to read:
SB225-SSA1,20,16 9218.167 Dispute resolution. (1) A dealer, manufacturer, distributor, or
10warrantor injured by a violation of this subchapter by another dealer, manufacturer,
11distributor, or warrantor may bring a civil action in circuit court to recover actual
12damages. The court shall award attorney fees and costs to the prevailing party in
13an action under this section. Venue for any civil action authorized by this section
14shall be exclusively in the county in which the dealership is located. In an action
15involving more than one dealer, venue may be in any county in which a dealer who
16is party to the action is located.
SB225-SSA1,20,19 17(2) (a) Before bringing suit under this section, the party bringing suit for an
18alleged violation shall serve a written demand for mediation upon the offending
19party. This paragraph does not apply to a proceeding for injunctive relief.
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