WISCONSIN LEMON LAW:
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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