218.11 Cross-referenceCross-reference: See also chs. Trans 140 and 142, Wis. adm. code. 218.12218.12 Recreational vehicle salespersons regulated. 218.12(1)(1) No person may engage in the business of selling recreational vehicles to a consumer or to the retail market in this state without a license therefor from the department. If a dealer acts as a salesperson the dealer shall secure a salesperson’s license in addition to the license for engaging as a dealer. 218.12(2)(a)(a) Applications for a salesperson’s license and renewals thereof shall be made to the department on such forms as the department prescribes and furnishes and, except as provided in par. (e), shall be accompanied by the license fee required under par. (c) or (d). Except as provided in par. (am) 3., the application shall include the applicant’s social security number. In addition, the application shall require such pertinent information as the department requires. 218.12(2)(am)1.1. Except as provided in subd. 3., the department shall deny an application for the issuance or renewal of a license if an individual has not included his or her social security number in the application. 218.12(2)(am)2.2. The department may not disclose a social security number obtained under par. (a) to any person except to the department of children and families for the sole purpose of administering s. 49.22, to the department of revenue for the sole purpose of requesting certifications under s. 73.0301, and to the department of workforce development for the sole purpose of requesting certifications under s. 108.227. 218.12(2)(am)3.3. If an applicant does not have a social security number, the applicant, as a condition of applying for or applying to renew a license under this section, shall submit a statement made or subscribed under oath or affirmation to the department that the applicant does not have a social security number. The form of the statement shall be prescribed by the department of children and families. Any license issued or renewed in reliance upon a false statement submitted by an applicant under this subdivision is invalid. 218.12(2)(b)1.1. The department shall promulgate rules establishing the license period under this section. 218.12(2)(b)2.2. The department may promulgate rules establishing a uniform expiration date for all licenses issued under this section. 218.12(2)(c)(c) Except as provided in pars. (d) and (e), the fee for a license issued under this section equals $4 multiplied by the number of years in the license period. The fee shall be prorated if the license period is not evenly divisible into years. 218.12(2)(d)(d) Except as provided in par. (e), if the department issues a license under this section during the license period, the fee for the license shall equal $4 multiplied by the number of calendar years, including parts of calendar years, during which the license remains in effect. A fee determined under this paragraph may not exceed the license fee for the entire license period under par. (c). 218.12(2)(e)(e) No license fee is required under par. (c) or (d) for an individual who is eligible for the veterans fee waiver program under s. 45.44. 218.12(3)(3) Every licensee shall carry his or her license when engaged in his or her business and display the same upon request. The license shall name his or her employer, and in case of a change of employer, the salesperson shall immediately mail his or her license to the department, which shall endorse such change on the license without charge. 218.12(3m)(a)(a) A license shall be denied, restricted, limited or suspended if the applicant or licensee is an individual who is delinquent in making court-ordered payments of child or family support, maintenance, birth expenses, medical expenses or other expenses related to the support of a child or former spouse, or who fails to comply, after appropriate notice, with a subpoena or warrant issued by the department of children and families or a county child support agency under s. 59.53 (5) and related to paternity or child support proceedings, as provided in a memorandum of understanding entered into under s. 49.857. 218.12(3m)(b)(b) The licensor shall suspend or revoke a license if the department of revenue certifies under s. 73.0301 that the licensee is liable for delinquent taxes. A licensee whose license is suspended or revoked under this paragraph for delinquent taxes is entitled to a notice under s. 73.0301 (2) (b) 1. b. and a hearing under s. 73.0301 (5) (a) but is not entitled to any other notice or hearing under this section. 218.12(3m)(c)(c) The licensor shall suspend or revoke a license if the department of workforce development certifies under s. 108.227 that the licensee is liable for delinquent unemployment insurance contributions. A licensee whose license is suspended or revoked under this paragraph for delinquent unemployment insurance contributions is entitled to a notice under s. 108.227 (2) (b) 1. b. and a hearing under s. 108.227 (5) (a) but is not entitled to any other notice or hearing under this section. 218.12(5)(5) The provision of s. 218.0116 relating to the denial, suspension and revocation of a motor vehicle salesperson’s license shall apply to the denial, suspension and revocation of a salesperson’s license so far as applicable, except that such provision does not apply to the denial, suspension or revocation of a license under sub. (3m). 218.12(6)(6) The provisions of ss. 218.0116 (9) and 218.0152 shall apply to this section, recreational vehicle sales practices and the regulation of recreational vehicle salespersons, as far as applicable. 218.14(1)(1) A dealer may not assess a purchaser of a recreational vehicle an additional service fee or charge for performing a vehicle inspection or completing a form that is related to the sale of the recreational vehicle and required by law unless the dealer discloses the fee or charge to the purchaser and provides a statement on the purchase or lease contract in substantially the following form: “A service fee or charge is not required by law but may be charged to recreational vehicle purchasers or lessees for services related to compliance with state and federal laws, verifications, and public safety and must be reasonable.” The amount of a service fee or charge assessed by a dealer under this subsection may not be higher than the amount initially disclosed. 218.14(2)(2) Upon request from a purchaser of a recreational vehicle, a dealer shall provide a written list of the services for which a service fee or charge under sub. (1) is assessed. 218.14(3)(3) The department may audit a dealer to determine whether fees or charges assessed by the dealer under sub. (1) are reasonable. 218.14 HistoryHistory: 2017 a. 59. 218.15218.15 Sale or lease of used recreational vehicles. In the sale or lease of any used recreational vehicle, the sales invoice or lease agreement shall contain the point of manufacture of the used recreational vehicle and the name of the manufacturer. 218.161218.161 Dealer agreement requirement. 218.161(1)(1) A manufacturer or distributor may not sell a new recreational vehicle in this state to or through a dealer without having first entered into a written dealer agreement with a dealer that has been signed by both parties. 218.161(2)(2) The manufacturer shall designate the area of sales responsibility exclusively assigned to a dealer in the dealer agreement and may not change the area of sales responsibility or contract with another dealer for sale of the same model or line-make, as specified in the agreement, in the designated area of sales responsibility during the duration of the agreement. 218.161(3)(3) The terms of the dealer agreement, including the area of sales responsibility, may not be reviewed or changed during the duration of the dealer agreement without the written mutual consent of the parties. The duration of the dealer agreement shall be stated in the dealer agreement. 218.161(4)(4) A dealer may not sell a new recreational vehicle in this state without having first entered into a dealer agreement with a manufacturer or distributor and may not sell outside the area of sales responsibility designated in the agreement under sub. (2). 218.161(5)(5) A manufacturer may not unilaterally issue a policy or procedure that violates or substantially alters a provision of the dealer agreement during the duration of the agreement. 218.161(6)(6) A manufacturer shall distribute new recreational vehicles to its dealers in a fair and equitable manner. If requested, a manufacturer shall provide information on its manner of distribution. 218.161(7)(7) A manufacturer shall provide its dealer with adequate technical data to perform proper service and repairs. 218.161 HistoryHistory: 2023 a. 164. 218.162218.162 Termination of dealer agreement. 218.162(1)(a)(a) A manufacturer or distributor, directly or through any officer, agent, or employee, may terminate, cancel, or fail to renew a model, line-make, or entire dealer agreement only with good cause, and, upon renewal, may not require additional inventory stocking requirements or increased retail sales targets in excess of the market growth in the dealer’s area of sales responsibility. 218.162(1)(b)(b) A manufacturer or distributor has the burden of showing good cause for terminating, canceling, or failing to renew a model, line-make, or dealer agreement with a dealer. For purposes of determining whether there is good cause for the proposed action, any of the following factors may be considered: 218.162(1)(b)1.1. The extent of the affected dealer’s penetration in the relevant market area for the relevant model or line-make. 218.162(1)(b)2.2. The nature and extent of the dealer’s investment in its business. 218.162(1)(b)3.3. The adequacy of the dealer’s service facilities, equipment, parts, supplies, and personnel. 218.162(1)(b)5.5. The extent and quality of the dealer’s service under recreational vehicle warranties. 218.162(1)(b)6.6. The failure to follow agreed-upon, reasonable procedures or standards related to the overall operation of the dealership consistent with the law and the dealer agreement. 218.162(1)(b)7.7. The dealer’s performance under the terms of its dealer agreement. 218.162(1)(c)1.1. Except as provided in this paragraph, a manufacturer or distributor shall provide a dealer with at least 120 days’ prior written notice of termination, cancellation, or nonrenewal of a model, line-make, or entire dealer agreement. 218.162(1)(c)2.2. The notice under subd. 1. shall state all reasons for the proposed termination, cancellation, or nonrenewal and shall state that if, within 30 days following receipt of the notice, the dealer provides to the manufacturer or distributor a written notice of intent to cure all claimed deficiencies, the dealer will then have 120 days following receipt of the notice to rectify the deficiencies. If the deficiencies are rectified within 120 days, the manufacturer’s or distributor’s notice is voided. If the dealer fails to provide the notice of intent to cure the deficiencies in the prescribed period, the termination, cancellation, or nonrenewal takes effect 30 days after the dealer’s receipt of the notice unless the dealer has new and untitled inventory on hand that may be disposed of as provided under sub. (3). 218.162(1)(c)3.3. The notice period under subd. 1. may be reduced to 30 days if the grounds for termination, cancellation, or nonrenewal are due to any of the following: 218.162(1)(c)3.b.b. The abandonment or closing of the business operations of the dealer for 10 consecutive business days unless the closing is due to an act of God, strike, labor difficulty, or other cause over which the dealer has no control. 218.162(1)(c)3.c.c. A significant misrepresentation by the dealer materially affecting the business relationship. 218.162(1)(c)3.d.d. A suspension of, revocation of, or refusal to renew the dealer’s license by the department. 218.162(1)(c)4.4. The notice provisions of this paragraph do not apply if the reason for termination, cancellation, or nonrenewal is insolvency, the occurrence of an assignment for the benefit of creditors, or bankruptcy. 218.162(2)(2) A dealer may terminate, cancel, or fail to renew a model, line-make, or entire dealer agreement with a manufacturer or distributor with or without good cause at any time by giving 30 days’ written notice to the manufacturer. If the termination, cancellation, or nonrenewal is for good cause, the dealer has the burden of showing good cause. Any of the following items, among others, may be deemed good cause for the proposed action by a dealer: 218.162(2)(b)(b) The business operations of the manufacturer have been abandoned or closed for 10 consecutive business days, unless the closing is due to an act of God, strike, labor difficulty, or other cause over which the manufacturer has no control. 218.162(2)(c)(c) A significant misrepresentation by the manufacturer materially affecting the business relationship. 218.162(2)(d)(d) A material violation of this subchapter that is not cured within 30 days after written notice by the dealer. 218.162(2)(e)(e) A declaration by the manufacturer of insolvency, the occurrence of an assignment for the benefit of creditors, or bankruptcy. 218.162(2)(f)(f) A manufacturer’s material violation of the dealer agreement that is not cured within 120 days after written notice by the dealer. 218.162(2)(h)(h) Manufacturer violation of area of sales responsibility protections or allowing other dealers to violate these protections. 218.162(3)(3) If the dealer agreement is terminated, canceled, or not renewed by the dealer for good cause, the manufacturer shall, at the election of the dealer and within 45 days after termination, cancellation, or nonrenewal, repurchase all of the following: 218.162(3)(a)(a) All new, untitled recreational vehicles that were acquired from the manufacturer or distributor within 18 months before the date of the notice of termination, cancellation, or nonrenewal that have not been used, except for demonstration purposes, and that have not been altered or damaged, at 100 percent of the net invoice cost, including transportation, less applicable rebates and discounts to the dealer. If any of the recreational vehicles repurchased is damaged, the amount due to the dealer shall be reduced by the cost to repair the damaged recreational vehicle. Damage prior to delivery to the dealer will not disqualify repurchase under this subsection. Any repurchased recreational vehicle must be paid for in full before the recreational vehicle is removed from the dealer’s premises. Upon payment under this paragraph, recreational vehicles must be immediately surrendered to the manufacturer. 218.162(3)(b)(b) All undamaged accessories or proprietary parts sold to the dealer for resale within the 12 months prior to termination, cancellation, or nonrenewal, if accompanied by the original invoice, at 105 percent of the original net price paid to the manufacturer or distributor to compensate the dealer for handling, packing, and shipping the parts. 218.162(3)(c)(c) Any properly functioning diagnostic equipment, special tools, current signage, or other equipment and machinery at 100 percent of the dealer’s net cost plus freight, destination, delivery, and distribution charges and sales taxes, if any, if the equipment, tools, signage, or machinery was purchased by the dealer within 5 years before termination, cancellation, or nonrenewal and upon the manufacturer’s or distributor’s request and can no longer be used in the normal course of the dealer’s ongoing business. 218.162(4)(4) If a dealer agreement is terminated, canceled, or not renewed by the manufacturer or distributor without good cause in violation of sub. (1), the manufacturer or distributor shall repurchase dealer recreational vehicles, accessories, and other equipment in the manner provided in sub. (3). 218.162(5)(a)(a) A dealer is not prohibited from selling any remaining in-stock inventory of a particular model or line-make after a dealer agreement has been terminated, cancelled, or not renewed by the manufacturer. 218.162(5)(b)(b) If recreational vehicles of a model or line-make subject to a terminated agreement are not repurchased or required to be repurchased by the manufacturer or distributor, the dealer may continue to sell recreational vehicles that are subject to the terminated dealer agreement and are currently in stock until those recreational vehicles are no longer in the dealer’s inventory. 218.162(6)(6) When taking on an additional line-make, a dealer shall notify in writing any manufacturer with whom the dealer has a dealer agreement of the same line-make at least 30 days prior to entering into a dealer agreement with the manufacturer of the additional line-make. 218.162 HistoryHistory: 2023 a. 164. 218.163218.163 Transfer of ownership. 218.163(1)(1) If a dealer desires to make a change in ownership by the sale of business assets, stock transfer, or otherwise, the dealer shall give the manufacturer or distributor written notice at least 10 business days before the closing, along with all supporting documentation as may be reasonably required by the manufacturer or distributor to determine if an objection to the sale may be made. In the absence of a breach by the selling dealer of its dealer agreement or this subchapter, the manufacturer or distributor may not object to the proposed change in ownership unless any of the following applies to the prospective transferee: 218.163(1)(a)(a) The transferee has previously been terminated for cause by the manufacturer. 218.163(1)(b)(b) The transferee has been convicted of a felony or any crime of fraud, deceit, or moral turpitude. 218.163(1)(c)(c) The transferee lacks any license required by law. 218.163(1)(d)(d) The transferee does not have an active line of credit sufficient to purchase a manufacturer’s product. 218.163(1)(e)(e) The transferee has undergone in the last 10 years bankruptcy, insolvency, a general assignment for the benefit of creditors, or the appointment of a receiver, trustee, or conservator to take possession of the transferee’s business or property. 218.163(2)(2) If a manufacturer or distributor objects to a proposed change in ownership, the manufacturer or distributor shall give written notice of its reasons to the dealer within 7 business days after receipt of the dealer’s notification and complete documentation. The manufacturer or distributor has the burden of proof with regard to its objection. If the manufacturer or distributor does not give timely notice of its objection, the change, sale, or transfer shall be approved. 218.163(3)(a)(a) A manufacturer or distributor shall provide a dealer an opportunity to designate, in writing, a family member as a successor to the dealership in the event of the death, incapacity, or retirement of the dealer. A manufacturer or distributor may not prevent or refuse to honor the succession unless the manufacturer or distributor has provided to the dealer written notice of its objections within 10 business days after receipt of the dealer’s modification of the dealer’s succession plan. In the absence of a breach of the dealer agreement, the manufacturer may object to the succession only for any of the following reasons: 218.163(3)(a)1.1. Conviction of the successor of a felony or any crime of fraud, deceit, or moral turpitude.
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Chs. 178-226, Partnerships and Corporations; Transportation; Utilities; Banks; Savings Associations
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