Wisconsin Code § 218.0171

Repair, replacement and refund under new motor vehicle warranties
Open in Lexace · Ask the AI about this section
(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.
(bt) “Heavy-duty vehicle” means any motor vehicle having a
gross vehicle weight rating or actual gross weight of more than
10,000 pounds.
(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.

(g) “Out of service,” with respect to a motor vehicle, means
that the vehicle is unable to be used by the consumer for the vehicle’s intended purpose as a result of any of the following:
1. The vehicle is in the possession of the manufacturer, motor
vehicle lessor, or any of the manufacturer’s authorized motor vehicle dealers for the purpose of performing or attempting repairs
to correct a nonconformity.
2. The vehicle is in the possession of the consumer and the
vehicle has a nonconformity that substantially affects the use or
safety of the vehicle and that has been subject to an attempt to repair under sub. (2) (a) on at least 2 occasions.
(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. Time during
which repair services are not available to the consumer because
of flood or other natural disaster, war, invasion, fire, or strike may
not be included in the 30-day time period under this subdivision.
(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 and if the consumer provides the manufacturer with the form specified in sub. (8) (a) 2. or 3., 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, subject to par. (cg),
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 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 refund. When the manufacturer provides the 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. If another person is in possession of the certificate of title, as shown by the records of the department of
transportation, that person shall, upon request of the consumer,
provide the certificate of title to the manufacturer upon satisfaction of any security interest in the motor vehicle.
(cg) 1. If a consumer described under sub. (1) (b) 1., 2., or 3.
elects a comparable new motor vehicle on the form specified in
sub. (8) (a) 2., no later than 30 days after receiving this form the
manufacturer shall agree in writing to provide a comparable new
motor vehicle or a refund of the full purchase price plus any sales
tax, finance charge, amount paid by the consumer at the point of
sale, and collateral costs. Upon the consumer’s receipt of this
writing, the manufacturer shall have until the 45th day after receiving from the consumer the form specified in sub. (8) (a) 2. to
either provide the comparable new motor vehicle or the refund.
During this period, the manufacturer shall exercise due diligence
in locating and providing a comparable new motor vehicle. If the
manufacturer agrees to provide a comparable new motor vehicle,
the manufacturer retains the right to provide the refund if a comparable new motor vehicle does not exist or cannot be delivered
within this 45-day period. This subdivision does not apply with
respect to heavy-duty vehicles.
2. If a consumer described under sub. (1) (b) 1. , 2., or 3.
elects a comparable new motor vehicle on the form specified in
sub. (8) (a) 2., no later than 30 days after receiving this form the
manufacturer shall agree in writing to provide a comparable new
motor vehicle or a refund of the full purchase price plus any sales
tax, finance charge, amount paid by the consumer at the point of
sale, and collateral costs. Upon the consumer’s receipt of this
writing, the manufacturer shall have until the 120th day after receiving from the consumer the form specified in sub. (8) (a) 2. to
either provide the comparable new motor vehicle or the refund.
During this period, the manufacturer shall exercise due diligence
in locating and providing a comparable new motor vehicle. If the
manufacturer agrees to provide a comparable new motor vehicle,
the manufacturer retains the right to provide the refund if a comparable new motor vehicle does not exist or cannot be delivered
within this 120-day period. This subdivision applies only with
respect to heavy-duty vehicles.
3. When a manufacturer provides a new motor vehicle under
subd. 1. or 2., 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. If another person is in possession of the certificate of title, as shown by the records of the
department of transportation, that person shall, upon request of
the consumer, provide the certificate of title to the manufacturer
upon satisfaction of any security interest in the motor vehicle.

(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. If another person is in possession of the certificate of title, as shown
by the records of the department of transportation, that person
shall, upon request of the motor vehicle lessor, provide the certificate to the manufacturer or to the motor vehicle lessor.
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. or (cg) 1. or 2., the manufacturer shall provide to the consumer
a written statement that specifies the trade-in amount previously
applied under s. 77.51 (12m) (b) 5. or 6. or (15b) (b) 5. or 6. 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 sub. (6m), 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.
(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.
(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.
(5) Except as provided in sub. (7) (b), this section does not
limit rights or remedies available to a consumer under any other
law.
(6) Any waiver by a consumer of rights under this section is
void.
(6m) Notwithstanding subs. (2) (b) and (6), if the consumer
enters into a negotiated written settlement with the manufacturer
regarding any motor vehicle nonconformity, the manufacturer
shall no longer be subject to any requirement of this section, except for sub. (2) (d), with respect to that motor vehicle. This subsection applies only with respect to heavy-duty vehicles.
(7) (a) 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 if the action is commenced within 36 months
after first delivery of the motor vehicle to a consumer. The court
shall award a consumer who prevails in such an action the amount
of any pecuniary loss, together with costs, disbursements and reasonable attorney fees, and may award any equitable relief the
court determines appropriate.
(b) Notwithstanding any other provision of this section or ch.
802, 804, or 806, in an action for a violation under this section, if
a court finds that any party to the action has failed to reasonably
cooperate with another party’s efforts to comply with obligations
under this section, which hinders the other party’s ability to comply with or seek recovery under this section, the court may extend
any deadlines specified in this section, reduce any damages, attor-

ney fees, or costs that may be awarded under par. (a), strike pleadings, or enter default judgment against the offending party.
(8) (a) The department of transportation shall prescribe one
or more forms for consumers to use for all of the following:
2. To elect that a manufacturer replace a motor vehicle with a
comparable new motor vehicle as provided under sub. (2) (b) 2. a.
3. To elect that a manufacturer make a refund as provided under sub. (2) (b) 2. or 3.
(b) The department shall make any form specified in par. (a)
available on the department’s Internet site. Any form specified in
par. (a) shall require the consumer to provide all of the following
information:
1. The consumer’s contact information.
2. Identification of the motor vehicle dealer from which the
motor vehicle was purchased, the date of delivery of the motor vehicle from the dealer, and the purchase price of the motor vehicle.
3. Identification of any holder of a perfected security interest
in the consumer’s motor vehicle.
4. The mileage of the motor vehicle at the time the first nonconformity is asserted to have occurred.
5. A place on the form to make the election described in par.
(a) 2. or 3.
6. An itemization of any other damages claimed by the
consumer.
(c) If any form specified in par. (a) is required under this section to be used by a consumer and the consumer has not provided
all information required under par. (b) to the satisfaction of the
manufacturer, the manufacturer may, within 30 days of receiving
the form, request that the consumer provide additional information required under par. (b). If the manufacturer makes such a
timely request for additional information, any time period under
sub. (2) (c), (cg) 1. or 2., or (cm) 1. does not begin to elapse until
the consumer provides this additional information.

‹ Prev All Wisconsin sections Next ›


Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.