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AB1112,8,1918 3. The notice period under subd. 1. may be reduced to 30 days if the grounds
19for termination, cancellation, or nonrenewal are due to any of the following:
AB1112,8,2020 a. A dealer or one of its owners being convicted of a felony.
AB1112,8,2321 b. The abandonment or closing of the business operations of the dealer for 10
22consecutive business days unless the closing is due to an act of God, strike, labor
23difficulty, or other cause over which the dealer has no control.
AB1112,8,2524 c. A significant misrepresentation by the dealer materially affecting the
25business relationship.
AB1112,9,2
1d. A suspension of, revocation of, or refusal to renew the dealer's license by the
2department.
AB1112,9,53 4. The notice provisions of this paragraph do not apply if the reason for
4termination, cancellation, or nonrenewal is insolvency, the occurrence of an
5assignment for the benefit of creditors, or bankruptcy.
AB1112,9,11 6(2) A dealer may terminate, cancel, or fail to renew a model, line-make, or
7entire dealer agreement with a manufacturer or distributor with or without good
8cause at any time by giving 30 days' written notice to the manufacturer. If the
9termination, cancellation, or nonrenewal is for good cause, the dealer has the burden
10of showing good cause. Any of the following items, among others, may be deemed
11good cause for the proposed action by a dealer:
AB1112,9,1212 (a) A manufacturer being convicted of a felony.
AB1112,9,1513 (b) The business operations of the manufacturer have been abandoned or closed
14for 10 consecutive business days, unless the closing is due to an act of God, strike,
15labor difficulty, or other cause over which the manufacturer has no control.
AB1112,9,1716 (c) A significant misrepresentation by the manufacturer materially affecting
17the business relationship.
AB1112,9,1918 (d) A material violation of this subchapter that is not cured within 30 days after
19written notice by the dealer.
AB1112,9,2120 (e) A declaration by the manufacturer of insolvency, the occurrence of an
21assignment for the benefit of creditors, or bankruptcy.
AB1112,9,2322 (f) A manufacturer's material violation of the dealer agreement that is not
23cured within 120 days after written notice by the dealer.
AB1112,9,2424 (g) Manufacturer coercion of the dealer under s. 218.166.
AB1112,10,2
1(h) Manufacturer violation of area of sales responsibility protections or
2allowing other dealers to violate these protections.
AB1112,10,6 3(3) If the dealer agreement is terminated, canceled, or not renewed by the
4dealer for good cause, the manufacturer shall, at the election of the dealer and within
545 days after termination, cancellation, or nonrenewal, repurchase all of the
6following:
AB1112,10,187 (a) All new, untitled recreational vehicles that were acquired from the
8manufacturer or distributor within 18 months before the date of the notice of
9termination, cancellation, or nonrenewal that have not been used, except for
10demonstration purposes, and that have not been altered or damaged, at 100 percent
11of the net invoice cost, including transportation, less applicable rebates and
12discounts to the dealer. If any of the recreational vehicles repurchased is damaged,
13the amount due to the dealer shall be reduced by the cost to repair the damaged
14recreational vehicle. Damage prior to delivery to the dealer will not disqualify
15repurchase under this subsection. Any repurchased recreational vehicle must be
16paid for in full before the recreational vehicle is removed from the dealer's premises.
17Upon payment under this paragraph, recreational vehicles must be immediately
18surrendered to the manufacturer.
AB1112,10,2319 (b) All undamaged accessories or proprietary parts sold to the dealer for resale
20within the 12 months prior to termination, cancellation, or nonrenewal, if
21accompanied by the original invoice, at 105 percent of the original net price paid to
22the manufacturer or distributor to compensate the dealer for handling, packing, and
23shipping the parts.
AB1112,11,524 (c) Any properly functioning diagnostic equipment, special tools, current
25signage, or other equipment and machinery at 100 percent of the dealer's net cost

1plus freight, destination, delivery, and distribution charges and sales taxes, if any,
2if the equipment, tools, signage, or machinery was purchased by the dealer within
35 years before termination, cancellation, or nonrenewal and upon the
4manufacturer's or distributor's request and can no longer be used in the normal
5course of the dealer's ongoing business.
AB1112,11,9 6(4) If a dealer agreement is terminated, canceled, or not renewed by the
7manufacturer or distributor without good cause in violation of sub. (1), the
8manufacturer or distributor shall repurchase dealer recreational vehicles,
9accessories, and other equipment in the manner provided in sub. (3).
AB1112,11,12 10(5) (a) A dealer is not prohibited from selling any remaining in-stock inventory
11of a particular model or line-make after a dealer agreement has been terminated,
12cancelled, or not renewed by the manufacturer.
AB1112,11,1713 (b) If recreational vehicles of a model or line-make subject to a terminated
14agreement are not repurchased or required to be repurchased by the manufacturer
15or distributor, the dealer may continue to sell recreational vehicles that are subject
16to the terminated dealer agreement and are currently in stock until those
17recreational vehicles are no longer in the dealer's inventory.
AB1112,11,21 18(6) When taking on an additional line-make, a dealer shall notify in writing
19any manufacturer with whom the dealer has a dealer agreement of the same
20line-make at least 30 days prior to entering into a dealer agreement with the
21manufacturer of the additional line-make.
AB1112,20 22Section 20. 218.163 of the statutes is created to read:
AB1112,12,5 23218.163 Transfer of ownership. (1) If a dealer desires to make a change in
24ownership by the sale of business assets, stock transfer, or otherwise, the dealer shall
25give the manufacturer or distributor written notice at least 10 business days before

1the closing, along with all supporting documentation as may be reasonably required
2by the manufacturer or distributor to determine if an objection to the sale may be
3made. In the absence of a breach by the selling dealer of its dealer agreement or this
4subchapter, the manufacturer or distributor may not object to the proposed change
5in ownership unless any of the following applies to the prospective transferee:
AB1112,12,76 (a) The transferee has previously been terminated for cause by the
7manufacturer.
AB1112,12,98 (b) The transferee has been convicted of a felony or any crime of fraud, deceit,
9or moral turpitude.
AB1112,12,1010 (c) The transferee lacks any license required by law.
AB1112,12,1211 (d) The transferee does not have an active line of credit sufficient to purchase
12a manufacturer's product.
AB1112,12,1513 (e) The transferee has undergone in the last 10 years bankruptcy, insolvency,
14a general assignment for the benefit of creditors, or the appointment of a receiver,
15trustee, or conservator to take possession of the transferee's business or property.
AB1112,12,21 16(2) If a manufacturer or distributor objects to a proposed change in ownership,
17the manufacturer or distributor shall give written notice of its reasons to the dealer
18within 7 business days after receipt of the dealer's notification and complete
19documentation. The manufacturer or distributor has the burden of proof with regard
20to its objection. If the manufacturer or distributor does not give timely notice of its
21objection, the change, sale, or transfer shall be approved.
AB1112,13,4 22(3) (a) A manufacturer or distributor shall provide a dealer an opportunity to
23designate, in writing, a family member as a successor to the dealership in the event
24of the death, incapacity, or retirement of the dealer. A manufacturer or distributor
25may not prevent or refuse to honor the succession unless the manufacturer or

1distributor has provided to the dealer written notice of its objections within 10
2business days after receipt of the dealer's modification of the dealer's succession
3plan. In the absence of a breach of the dealer agreement, the manufacturer may
4object to the succession only for any of the following reasons:
AB1112,13,65 1. Conviction of the successor of a felony or any crime of fraud, deceit, or moral
6turpitude.
AB1112,13,77 2. Bankruptcy or insolvency of the successor during the past 10 years.
AB1112,13,98 3. Prior termination by the manufacturer of the successor for breach of a dealer
9agreement.
AB1112,13,1110 4. The lack of an active line of credit for the successor sufficient to purchase the
11manufacturer's product.
AB1112,13,1212 5. The lack of any license for the successor required by law.
AB1112,13,1613 (b) The manufacturer or distributor has the burden of proof regarding its
14objection. A family member may not succeed to a dealership if the succession
15involves, without the manufacturer's or distributor's consent, a relocation of the
16business or an alteration of the terms and conditions of the dealer agreement.
AB1112,21 17Section 21. 218.164 of the statutes is created to read:
AB1112,13,19 18218.164 Warranty obligation. (1) Each warrantor shall do all of the
19following:
AB1112,13,2220 (a) Specify, in writing, to each of the warrantor's dealers, the dealer's
21obligations, if any, for preparation, delivery, and warranty service on the warrantor's
22products.
AB1112,13,2423 (b) Compensate the dealer for warranty service performed by the dealer that
24is covered by the warrantor's own warranty.
AB1112,14,8
1(c) Provide the dealer with the schedule of compensation to be paid and the time
2allowances for the performance of any work and service. The schedule of
3compensation shall include reasonable compensation for diagnostic work as well as
4warranty labor. If the schedule of compensation required by this paragraph does not
5include a particular repair, the warrantor shall reimburse the dealer for warranty
6service for the actual time expended unless the warrantor demonstrates that the
7actual time was not reasonable. If the warrantor demonstrates that the actual time
8was not reasonable, the dealer shall be paid a reasonable sum.
AB1112,14,13 9(2) Time allowances for the diagnosis and performance of warranty labor shall
10be reasonable for the work to be performed. The compensation of a dealer for
11warranty labor may not be less than the lowest retail labor rate actually charged by
12the dealer in the ordinary course of business for like nonwarranty labor as long as
13the rate is reasonable.
AB1112,14,21 14(3) The warrantor shall reimburse the dealer for any warranty part at actual
15wholesale cost plus a minimum 30 percent handling charge and the cost, if any, of
16freight to return such part to the warrantor. If a part is sent to the dealer at no cost,
17the dealer is entitled to payment of 30 percent of the wholesale cost of the part from
18warrantor as a handling charge. The maximum handling charge for a part shall not
19exceed $300. If the warrantor requires the dealer to return a warranty part,
20accessory, or complete component, the warrantor shall reimburse the dealer the cost
21of freight to return the part, accessory, or component.
AB1112,15,2 22(4) Warranty audits of dealer records may be conducted by the warrantor on
23a reasonable basis, and dealer claims for warranty compensation may not be denied
24except for cause, including performance of nonwarranty repairs, material

1noncompliance with the warrantor's published policies and procedures, lack of
2material documentation, fraud, or misrepresentation.
AB1112,15,4 3(5) A dealer shall submit warranty claims within 45 days after completing
4work.
AB1112,15,7 5(6) A dealer shall notify the warrantor as soon as is reasonably possible,
6verbally or in writing, if the dealer is unable or unwilling to perform material or
7repetitive warranty repairs.
AB1112,15,11 8(7) A warrantor shall disapprove warranty claims in writing within 45 days
9after the date of submission by the dealer in the manner and form prescribed by the
10warrantor. Claims not specifically disapproved in writing within 45 days shall be
11construed to be approved and must be paid within 60 days.
AB1112,15,12 12(8) No warrantor may do any of the following:
AB1112,15,1413 (a) Fail to perform any of its warranty obligations with respect to its warranted
14products.
AB1112,15,2115 (b) Fail to include, in written notices of factory campaigns to recreational
16vehicle owners and dealers, the expected date by which necessary parts and
17equipment, including tires and chassis or chassis parts, will be available to dealers
18to perform the factory campaign work. A warrantor may ship parts to the dealer to
19affect the factory campaign work, and, if parts provided are in excess of the dealer's
20requirements, the dealer may return unused parts to the warrantor for credit after
21completion of the campaign.
AB1112,15,2422 (c) Fail to compensate any of its dealers for authorized repairs effected by the
23dealer of merchandise damaged in manufacture or transit to the dealer if the carrier
24is designated by the warrantor, factory branch, distributor, or distributor branch.
AB1112,16,3
1(d) Fail to compensate any of its dealers for authorized warranty service in
2accordance with the time allowances set forth in the schedule of compensation under
3sub. (1) (c) if performed in a timely and competent manner.
AB1112,16,64 (e) Intentionally misrepresent in any way to purchasers of recreational
5vehicles that warranties with respect to the manufacture, performance, or design of
6the vehicle are made by the dealer as warrantor or co-warrantor.
AB1112,16,87 (f) Require the dealer to make warranties to customers in any manner related
8to the manufacture of the recreational vehicle.
AB1112,16,9 9(9) No dealer may do any of the following:
AB1112,16,1110 (a) Fail to perform predelivery inspection functions, as specified by the
11warrantor, in a competent and timely manner.
AB1112,16,1512 (b) Fail to perform warranty service work authorized by the warrantor in a
13reasonably competent and timely manner on any transient customer's vehicle of the
14same line-make unless the dealer determines that the customer is acting in a
15manner detrimental to its business.
AB1112,16,1716 (c) Fail to track actual time expended to perform warranty work not governed
17by time allowances in the schedule of compensation under sub. (1) (c).
AB1112,16,1818 (d) Claim an agency relationship with the warrantor or manufacturer.
AB1112,16,1919 (e) Misrepresent the terms of any warranty.
AB1112,16,21 20(10) Notwithstanding the terms of any dealer agreement, all of the following
21apply:
AB1112,17,522 (a) A warrantor shall indemnify, defend, and hold harmless its dealer against
23any losses or damages to the extent such losses or damages are caused by the
24negligence or willful misconduct of the warrantor. A dealer may not be denied
25indemnification or a defense for failing to discover, disclose, or remedy a defect in the

1design or manufacturing of the recreational vehicle. A dealer shall provide to the
2warrantor a copy of any suit in which allegations are made under this section within
310 days after receiving the suit. This paragraph shall continue to apply even after
4the recreational vehicle is titled. Indemnification shall include court costs,
5reasonable attorney fees, and expert witness fees incurred by the dealer.
AB1112,17,126 (b) A dealer shall indemnify, defend, and hold harmless its warrantor against
7any losses or damages to the extent such losses or damages are caused by the
8negligence or willful misconduct of the dealer. The warrantor shall provide to the
9dealer a copy of any suit in which allegations are made under this section within 10
10days after receiving the suit. This paragraph shall continue to apply even after the
11recreational vehicle is titled. Indemnification must include court costs, reasonable
12attorney fees, and expert witness fees incurred by the warrantor.
AB1112,22 13Section 22. 218.165 of the statutes is created to read:
AB1112,17,19 14218.165 Inspection of recreational vehicles. (1) Whenever a new
15recreational vehicle is damaged prior to transit to the dealer or is damaged in transit
16to the dealer when the carrier or means of transportation has been selected by the
17manufacturer or distributor, the dealer shall notify the manufacturer or distributor
18of the damage within the time frame specified in the dealer agreement and do any
19of the following:
AB1112,17,2120 (a) Request from the manufacturer or distributor authorization to replace the
21components, parts, and accessories damaged or otherwise correct the damage.
AB1112,17,2222 (b) Reject the vehicle within the time frame set forth in sub. (4).
AB1112,18,2 23(2) If a manufacturer or distributor refuses or fails to authorize repair of
24damage described under sub. (1) within 10 days after receipt of notification under

1sub. (1) or if the dealer rejects the recreational vehicle because of damage, ownership
2of the new recreational vehicle reverts to the manufacturer or distributor.
AB1112,18,5 3(3) A dealer shall exercise due care in custody of a damaged recreational
4vehicle, but the dealer shall have no other obligations, financial or otherwise, with
5respect to that recreational vehicle.
AB1112,18,8 6(4) The time frame for inspection and rejection by the dealer shall be part of
7the dealer agreement and may not be less than 2 business days after the physical
8delivery of the recreational vehicle.
AB1112,23 9Section 23. 218.166 of the statutes is created to read:
AB1112,18,13 10218.166 Coercion. (1) In this section, “coerce” includes threatening to
11terminate, cancel, or not renew a dealer agreement without good cause or
12threatening to withhold product lines or delay product delivery as an inducement to
13amending the dealer agreement.
AB1112,18,15 14(2) A manufacturer or distributor may not coerce or attempt to coerce a dealer
15to do any of the following:
AB1112,18,1616 (a) Purchase a product that the dealer did not order.
AB1112,18,1717 (b) Enter into an agreement with the manufacturer or distributor.
AB1112,18,1818 (c) Take any action that is unfair or unreasonable to the dealer.
AB1112,18,2119 (d) Enter into an agreement that requires the dealer to submit its disputes to
20binding arbitration or otherwise waive rights or responsibilities provided under this
21subchapter.
AB1112,18,2322 (e) Forego exercising a right authorized by a dealer agreement or any law
23governing the manufacturer-dealer relationship.
AB1112,18,25 24(3) A dealer bears the burden of proof regarding the prohibited acts described
25in sub. (2).
AB1112,24
1Section 24. 218.167 of the statutes is created to read:
AB1112,19,9 2218.167 Dispute resolution. (1) A dealer, manufacturer, distributor, or
3warrantor injured by a violation of this subchapter by another dealer, manufacturer,
4distributor, or warrantor may bring a civil action in circuit court to recover actual
5damages. The court shall award attorney fees and costs to the prevailing party in
6an action under this section. Venue for any civil action authorized by this section
7shall be exclusively in the county in which the dealership is located. In an action
8involving more than one dealer, venue may be in any county in which a dealer who
9is party to the action is located.
AB1112,19,12 10(2) (a) Before bringing suit under this section, the party bringing suit for an
11alleged violation shall serve a written demand for mediation upon the offending
12party. This paragraph does not apply to a proceeding for injunctive relief.
AB1112,19,1813 (b) A demand for mediation under this subsection shall be served upon the
14offending party by certified mail at the address stated within the dealer agreement
15between the parties or, if the address is not contained in the agreement or the address
16is no longer valid, the address on the offending party's license filed with this state.
17In the event of a civil action between 2 dealers, the demand shall be mailed to the
18address on the dealer's license filed with this state.
AB1112,19,2019 (c) A demand for mediation under this subsection shall contain a brief
20statement of the dispute and the relief sought by the party filing the demand.
AB1112,20,221 (d) Within 20 days after the date a demand for mediation is served under par.
22(b), the parties shall mutually select an independent mediator and meet with the
23mediator for the purpose of attempting to resolve the dispute. The meeting place
24shall be in this state in a location selected by the mediator. The mediator may extend

1the date of the meeting for good cause shown by either party or upon stipulation of
2both parties.
AB1112,20,123 (e) The service of a demand for mediation under this subsection stays the time
4for the filing of any complaint, petition, protest, or action under this subchapter until
5representatives of both parties have met with a mutually selected mediator for the
6purpose of attempting to resolve the dispute. If a complaint, petition, protest, or
7action is filed before that meeting, the court shall enter an order suspending the
8proceeding or action until the meeting has occurred and may, upon written
9stipulation of all parties to the proceeding or action that they wish to continue to
10mediate under this subsection, enter an order suspending the proceeding or action
11for as long a period as the court considers appropriate. A suspension order issued
12under this paragraph may be revoked by the court.
AB1112,20,1413 (f) The parties to a mediation under this subsection shall bear their own costs
14for attorney fees and divide equally the cost of the mediator.
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