Register March 2020 No. 771
Chapter Trans 139
MOTOR VEHICLE TRADE PRACTICES
Purpose and scope.
Advertising and sales representations.
Unfair trade practices.
Disclosure of the condition of the motor vehicle.
Motor vehicle purchase contract.
Satisfaction of liens.
Ch. Trans 139 Note
Note: Chapter MVD 24 as it existed on December, 31, 1982 was repealed and recreated as chapter Trans 139 effective January 1, 1983.
As authorized by ss. 110.06
, and 227.11
, Stats., the purpose of this chapter is to establish the department's administrative interpretation of ss. 218.0116 (1) (cm)
, (im) 2.
, and (km)
, and 218.0146
, Stats., relating to motor vehicle trade practices.
This chapter applies to any person applying for or holding a Wisconsin motor vehicle salvage dealer, manufacturer, distributor wholesale auction, dealer or salesperson license.
This chapter applies to any sale or lease of a vehicle by a dealer to a person within the state of Wisconsin if the vehicle is delivered within the boundaries of this state notwithstanding any contractual agreement between the dealer and person to the contrary.
Trans 139.01 History
Cr. Register, December, 1982, No. 324
, eff. 1-1-83; am. (1), Register, May, 1985, No. 353
, eff. 6-1-85; correction in (1) made under s. 13.93 (2m) (b) 7., Stats., Register, December, 1987, No. 384
; am. (2), Register, May, 1997, No. 497
, eff. 9-1-97; corrections in (1) made under s. 13.93 (2m) (b) 7., Stats., Register July 2002 No. 559
; CR 99-135
: cr. (3) Register February 2004 No. 578
, eff. 3-1-04.
Words and phrases defined in ss. 340.01
, Stats., apply to this chapter unless a different definition is specified. In this chapter:
“Business use" means any motor vehicle owned or leased by either of the following:
“Cash price" means manufacturer's suggested retail price, or dealer asking price, including manufacturer installed options and accessories and manufacturer transportation charges, plus dealer installed options and accessories and additional dealer markup, profit and transportation charges, minus the dollar value of cash discounts.
“Damage" means defects caused by reasons other than normal wear through vehicle age and usage.
“Day" means calendar day, unless otherwise stated in this chapter. The provisions of s. 990.001 (4)
, Stats., apply to calculations of time under this chapter, except that a legal holiday shall be counted as a day if the dealer is open for business.
“Demonstrator" means any untitled or non-privately titled motor vehicle which was used primarily for the purpose of demonstration to the public.
“Executive" means any untitled or non-privately titled motor vehicle which was used primarily by executives of licensed manufacturers, distributors or dealers and not used for demonstration to the public.
“Insurance service plan" means a repair agreement issued by an insurance company and sold by a dealer.
“Lease buy-out" means the lease option price or, if there is no option price, the amount the lessee shall pay the lessor to terminate the lease and transfer title to the vehicle.
“Lease use" means any motor vehicle leased for a period of time exceeding 4 months.
“Licensee" means any motor vehicle manufacturer, distributor, dealer, or salesperson, or any combination thereof, licensed by the department.
“Manufacturer recall" means a recall inspection or repair which the manufacturer of a vehicle has been ordered to have performed by the national highway traffic safety administration or which the manufacturer has agreed voluntarily to have performed for safety reasons.
“Manufacturer warranty" means the original new vehicle warranty issued by the vehicle manufacturer. That term includes any motor home warranty issued by the vehicle engine or chassis manufacturer. Manufacturer warranty does not include a warranty issued by a manufacturer of vehicle parts or services not warranted by the vehicle manufacturer.
“Material" means that a reasonable person would attach importance to its existence or a seller knows or had reason to know that a buyer would regard it as important. A seller has reason to know that information is material if a buyer specifically requests the information.
“New" means any untitled or non-privately titled motor vehicle of the stated model year which has not been a demonstrator and has not been operated more than 200 miles for purposes other than manufacturer tests, pre-delivery tests by a dealer, dealer exchange or delivery.
“Personal use" means any motor vehicle owned or leased by an individual and primarily operated for personal use.
“Private retail purchaser" or “retail purchaser" means any purchaser not licensed as a motor vehicle manufacturer, distributor, dealer, or wholesaler.
“Privately titled vehicle" means a vehicle titled by a private individual or any party other than a licensed motor vehicle manufacturer, distributor, or dealer.
For vehicle inspections, a standard that requires an interior and exterior inspection, an under-hood and under-vehicle inspection, and a test drive. It does not require taking the vehicle apart or running tests unless it is necessary to diagnose apparent symptoms. Brakes may require some disassembly to satisfy the requirements in ch. Trans 305
For records inspections, a standard that requires providing information the dealership gets from manufacturer and auction notices, prior owner documents and disclosures, and their own vehicle inspection and repair records. It does not require contacting prior owners or obtaining records of previous titles unless necessary to clarify inconsistent or questionable information that is apparent.
“Rebuilt salvage" means any repaired vehicle that has ever had a salvage notation on its certificate of title from Wisconsin or another jurisdiction.
“Rental use" means any motor vehicle rented for a period of time not exceeding 4 months.
“Sale" includes lease with the option of purchase when the option is exercised.
“Service contract" means any repair agreement sold by a dealer.
“Title" means certificate of title issued by the Wisconsin department of transportation under ch. 342
, Stats., or by another state in conformity with its applicable law, as evidence of ownership of a specific vehicle.
“Used" means any motor vehicle other than a new motor vehicle and includes executive or demonstrator.
“Water damaged vehicle" means a vehicle that has been materially damaged by being covered, in whole or in part, by water, whether by flood or other occurrence and the damage is less than what is required to meet the definition for branding in s. 342.10 (3) (d)
Trans 139.02 History
Cr. Register, December, 1982, No. 324
, eff. 1-1-83; am. (intro.), renum. (1) to (9) and (11) to (14) to be (2) to (6), (8), (9), (11), (13), (14) and (18) to (20) and am. (11), cr. (1), (7), (9m), (12), (15) to (17) and (21), r. and recr. (10), Register, May, 1997, No. 497
, eff. 9-1-97; CR 99-135
: cr. (3m), (6m), (9r), (10g) and (10r), am. (11) and (19) Register February 2004 No. 578
, eff. 3-1-04; CR 08-029
: cr. (19m) Register August 2008 No. 632
, eff. 9-1-08.
Advertising and sales representations. Trans 139.03(1)(1)
The use of false, deceptive or misleading advertising or representations by any licensee to induce the purchase of a motor vehicle constitutes an unfair practice and is prohibited.
Any licensee, making any statement of fact to the public in any advertisement or written statement or representation concerning the motor vehicles it offers for sale, the services it provides or other aspects of its business operation, shall possess detailed evidence of the validity and accuracy thereof, which evidence shall be furnished to the department upon request.