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Wisconsin Lemon Law Statutes
Wisconsin
Lemon Law Statutes
Chapter 218.0171
218.0171 Repair, replacement and refund under new motor vehicle warranties.
218.0171(1) In this section:
(a) "Collateral
costs" means expenses incurred
by a consumer in connection with
the repair of a nonconformity,
including the costs of obtaining
alternative transportation.
(b) "Consumer" means
any of the following:
1. The purchaser of a new motor
vehicle, if the motor vehicle
was purchased from a motor vehicle
dealer for purposes other than
resale.
2. A person to whom the motor
vehicle is transferred for purposes
other than resale, if the transfer
occurs before the expiration of
an express warranty applicable
to the motor vehicle.
3. A person who may enforce the warranty.
4. A person who leases a motor vehicle from a motor vehicle lessor under a written lease.
(bd) "Demonstrator"
means used primarily for the purpose
of demonstration to the public.
(bg) "Early termination cost"
means any expense or obligation
a motor vehicle lessor incurs
as a result of both the termination
of a written lease before the
termination date set forth in
that lease and the return of a
motor vehicle to a manufacturer
under sub. (2) (b) 3. "Early
termination cost" includes
a penalty for prepayment under
a finance arrangement.
(bj) "Early termination savings" means any expense or obligation a motor vehicle lessor avoids as a result of both the termination of a written lease before the termination date set forth in that lease and the return of a motor vehicle to a manufacturer under sub. (2) (b) 3. "Early termination savings" includes an interest charge the motor vehicle lessor would have paid to finance the motor vehicle or, if the motor vehicle lessor does not finance the motor vehicle, the difference between the total amount for which the lease obligates the consumer during the period of the lease term remaining after the early termination and the present value of that amount at the date of the early termination.
(bp) "Executive" means used primarily by an executive of a licensed manufacturer, distributor or dealer, and not used for demonstration to the public.
(c) "Manufacturer" means a manufacturer as defined in s. 218.0101 (20) and agents of the manufacturer, including an importer, a distributor, factory branch, distributor branch and any warrantors of the manufacturer's motor vehicles, but not including a motor vehicle dealer.
(d) "Motor vehicle" means any motor driven vehicle required to be registered under ch. 341 or exempt from registration under s. 341.05 (2), including a demonstrator or executive vehicle not titled or titled by a manufacturer or a motor vehicle dealer, which a consumer purchases or accepts transfer of in this state. "Motor vehicle" does not mean a moped, semitrailer or trailer designed for use in combination with a truck or truck tractor.
(e) "Motor vehicle dealer" has the meaning given under s. 218.0101 (23) (a).
(em) "Motor vehicle lessor"
means a person who holds title
to a motor vehicle leased to a
lessee, or who holds the lessor's
rights, under a written lease.
(f) "Nonconformity"
means a condition or defect which
substantially impairs the use,
value or safety of a motor vehicle,
and is covered by an express warranty
applicable to the motor vehicle
or to a component of the motor
vehicle, but does not include
a condition or defect which is
the result of abuse, neglect or
unauthorized modification or alteration
of the motor vehicle by a consumer.
(h) "Reasonable attempt to
repair" means any of the
following occurring within the
term of an express warranty applicable
to a new motor vehicle or within
one year after first delivery
of the motor vehicle to a consumer,
whichever is sooner:
1. The same nonconformity with
the warranty is subject to repair
by the manufacturer, motor vehicle
lessor or any of the manufacturer's
authorized motor vehicle dealers
at least 4 times and the nonconformity
continues.
2. The motor vehicle is out of
service for an aggregate of at
least 30 days because of warranty
nonconformities.
218.0171(2)
(a) If a new
motor vehicle does not conform
to an applicable express warranty
and the consumer reports the nonconformity
to the manufacturer, the motor
vehicle lessor or any of the manufacturer's
authorized motor vehicle dealers
and makes the motor vehicle available
for repair before the expiration
of the warranty or one year after
first delivery of the motor vehicle
to a consumer, whichever is sooner,
the nonconformity shall be repaired.
(b)
1. If after a
reasonable attempt to repair the
nonconformity is not repaired,
the manufacturer shall carry out
the requirement under subd. 2.
or 3., whichever is appropriate.
2. At the direction of a consumer
described under sub. (1) (b) 1.,
2. or 3., do one of the following:
a. Accept return of the motor
vehicle and replace the motor
vehicle with a comparable new
motor vehicle and refund any collateral
costs.
b. Accept return of the motor
vehicle and refund to the consumer
and to any holder of a perfected
security interest in the consumer's
motor vehicle, as their interest
may appear, the full purchase
price plus any sales tax, finance
charge, amount paid by the consumer
at the point of sale and collateral
costs, less a reasonable allowance
for use. Under this subdivision,
a reasonable allowance for use
may not exceed the amount obtained
by multiplying the full purchase
price of the motor vehicle by
a fraction, the denominator of
which is 100,000 or, for a motorcycle,
20,000, and the numerator of which
is the number of miles the motor
vehicle was driven before the
consumer first reported the nonconformity
to the motor vehicle dealer.
3.
a. With respect
to a consumer described in sub.
(1) (b) 4., accept return of the
motor vehicle, refund to the motor
vehicle lessor and to any holder
of a perfected security interest
in the motor vehicle, as their
interest may appear, the current
value of the written lease and
refund to the consumer the amount
the consumer paid under the written
lease plus any sales tax and collateral
costs, less a reasonable allowance
for use.
b. Under this subdivision, the
current value of the written lease
equals the total amount for which
that lease obligates the consumer
during the period of the lease
remaining after its early termination,
plus the motor vehicle dealer's
early termination costs and the
value of the motor vehicle at
the lease expiration date if the
lease sets forth that value, less
the motor vehicle lessor's early
termination savings.
c. Under this subdivision, a reasonable allowance for use may not exceed the amount obtained by multiplying the total amount for which the written lease obligates the consumer by a fraction, the denominator of which is 100,000 and the numerator of which is the number of miles the consumer drove the motor vehicle before first reporting the nonconformity to the manufacturer, motor vehicle lessor or motor vehicle dealer.
(c) To receive a comparable new
motor vehicle or a refund due
under par. (b) 1. or 2., a consumer
described under sub. (1) (b) 1.,
2. or 3. shall offer to the manufacturer
of the motor vehicle having the
nonconformity to transfer title
of that motor vehicle to that
manufacturer. No later than 30
days after that offer, the manufacturer
shall provide the consumer with
the comparable new motor vehicle
or refund. When the manufacturer
provides the new motor vehicle
or refund, the consumer shall
return the motor vehicle having
the nonconformity to the manufacturer
and provide the manufacturer with
the certificate of title and all
endorsements necessary to transfer
title to the manufacturer.
(cm)
1. To receive a refund due under
par. (b) 3., a consumer described
under sub. (1) (b) 4. shall offer
to the manufacturer of the motor
vehicle having the nonconformity
to return that motor vehicle to
that manufacturer. No later than
30 days after that offer, the
manufacturer shall provide the
refund to the consumer. When the
manufacturer provides the refund,
the consumer shall return the
motor vehicle having the nonconformity
to the manufacturer.
2. To receive a refund due under
par. (b) 3., a motor vehicle lessor
shall offer to the manufacturer
of the motor vehicle having the
nonconformity to transfer title
of that motor vehicle to that
manufacturer. No later than 30
days after that offer, the manufacturer
shall provide the refund to the
motor vehicle lessor. When the
manufacturer provides the refund,
the motor vehicle lessor shall
provide to the manufacturer the
certificate of title and all endorsements
necessary to transfer title to
the manufacturer.
3. No person may enforce the lease against the consumer after the consumer receives a refund due under par. (b) 3.
(cq) Upon payment of a refund
to a consumer under par. (b) 2.
b., the manufacturer shall provide
to the consumer a written statement
that specifies the trade-in amount
previously applied under s. 77.51
(4) (b) 3. or 3m. or (15) (b)
4. or 4m. toward the sales price
of the motor vehicle having the
nonconformity and the date on
which the manufacturer provided
the refund.
(d) No motor vehicle returned by a consumer or motor vehicle lessor in this state under par. (b), or by a consumer or motor vehicle lessor in another state under a similar law of that state, may be sold or leased again in this state unless full disclosure of the reasons for return is made to any prospective buyer or lessee.
(e) The department of revenue shall refund to the manufacturer any sales tax which the manufacturer refunded to the consumer under par. (b) if the manufacturer provides to the department of revenue a written request for a refund along with evidence that the sales tax was paid when the motor vehicle was purchased and that the manufacturer refunded the sales tax to the consumer. The department may not refund any sales tax under this paragraph if it has made a refund in connection with the same motor vehicle under par. (f).
(f) The department of revenue shall refund to a consumer described under sub. (1) (b) 1., 2. or 3. all or part of the sales tax paid by the consumer on the purchase of a new motor vehicle, based on the amount of the refund of the purchase price of the motor vehicle actually received by the consumer, if all of the following apply:
1. The consumer returned the motor
vehicle to its manufacturer and
received a refund of all or part
of the purchase price but not
the corresponding amount of sales
tax.
2. The consumer bought the new
motor vehicle after November 2,
1983.
3. The consumer provides the department of revenue with a written request for a refund of the sales tax along with evidence that the consumer received a certain amount as a refund of the purchase price of the motor vehicle from the manufacturer, that the sales tax was paid when the motor vehicle was bought new and that the manufacturer did not refund the sales tax to the consumer.
4. The department of revenue has not made a refund under par. (e) in connection with the motor vehicle.
218.0171(3) If there is available
to the consumer an informal dispute
settlement procedure which is
certified under sub. (4), the
consumer may not bring an action
under sub. (7) unless he or she
first resorts to that procedure.
218.0171(4)
(a) The department of transportation
shall adopt rules specifying the
requirements with which each informal
dispute settlement procedure shall
comply. The rules shall require
each person establishing an informal
dispute settlement procedure to
do all of the following:
1. Provide rights
and procedures at least as favorable
to the consumer as are required
under 16 CFR Part 703, in effect
on November 3, 1983.
2. If after a reasonable attempt
to repair the nonconformity is
not repaired, require the manufacturer
to provide a remedy as set forth
under sub. (2) (b).
(b) The department of transportation
shall investigate each informal
dispute settlement procedure provided
in this state to determine whether
it complies with the rules adopted
under par. (a). The department
shall certify each informal dispute
settlement procedure which complies.
The department may revoke certification
if it determines that an informal
dispute settlement procedure no
longer complies with the rules
promulgated under par. (a). Annually,
the department shall publish a
report evaluating the informal
dispute settlement procedures
provided in this state, stating
whether those procedures are certified
and stating the reasons for the
failure of any procedure to obtain
certification or for the revocation
of any certification.
(c) Any person who establishes
an informal dispute settlement
procedure the certification of
which is denied or revoked by
the department of transportation
may appeal that denial or revocation
under ch. 227.
(d) Annually, any person who establishes an informal dispute settlement procedure shall file with the department of transportation a copy of the annual audit required under 16 CFR Part 703 or a substantially similar audit and any additional information the department requires in order to evaluate informal dispute settlement procedures.
(e) The department of transportation may consider whether a manufacturer obtains certification under this subsection in determining whether to issue a manufacturer's license to do business in this state.
218.0171(5) This section does
not limit rights or remedies available
to a consumer under any other
law.
218.0171(6) Any waiver by a consumer
of rights under this section is
void.
218.0171(7) In addition to pursuing any other remedy, a consumer may bring an action to recover for any damages caused by a violation of this section. The court shall award a consumer who prevails in such an action twice the amount of any pecuniary loss, together with costs, disbursements and reasonable attorney fees, and any equitable relief the court determines appropriate.
History: 1983 a. 48; 1985 a. 205 ss. 1m to 6, 8; 1987 a. 105, 169, 323, 403; 1989 a. 31; 1999 a. 31 s. 287; Stats. 1999 s. 218.0171; 2001 a. 45.
Cross Reference: See also ch. Trans 143, Wis. adm. code.
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