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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.
AB1112,20,24 15(3) In addition to the remedies provided in this section, and notwithstanding
16the existence of any additional remedy at law, a dealer or manufacturer may apply
17to a circuit court for the grant, upon a hearing and for cause shown, of a temporary
18or permanent injunction, or both, restraining any person from acting as a dealer,
19manufacturer, or distributor without being properly licensed under this chapter,
20from violating or continuing to violate any of the provisions of this subchapter, or
21from failing or refusing to comply with the requirements of this subchapter. An
22injunction under this subsection shall be issued without bond. A single act in
23violation of any of the provisions of this subchapter is sufficient to authorize the
24issuance of an injunction.
AB1112,25 25Section 25. 218.17 of the statutes is created to read:
AB1112,21,8
1218.17 Penalties. The state may suspend or revoke any dealer, manufacturer,
2or distributor license upon a finding that any such party violated any provision of ss.
3218.161 to 218.167. The department may impose, levy, and collect by legal process
4fines, in an amount not to exceed $1,000 for each violation, against any person or
5entity if it finds that such person or entity has violated any provision of ss. 218.161
6to 218.167. A person against whom a fine is imposed under this section is entitled
7to an administrative hearing or other proceeding authorized under state law to
8contest the action or fine levied, or about to be levied, against the person or entity.
AB1112,21,99 (End)
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