Lemon Law - Wisconsin
Lemon Law
Lemon Law - "Lemon
law" is that body of state law which defines an automobile
owners rights when the manufacturer is not able to repair the
automobile within the limits specified. In
such cases, the automobile is referred to as a "lemon",
and is subject to the conditions of the state lemon law.
Your Lemon Law
Disclaimer:
These pages are created to inform and educate the public about lemon
law and under the lemon law in your state.
They are not and should not be considered legal opinions or advice
as to whether you have rights under lemon law or whether you should
pursue "a lemon law case".
218.015 Repair, replacement and
refund.
Under new motor vehicle warranties.
(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. 218.01(1)(L) 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, semi-trailer or trailer
designed for use in combination with a truck or truck tractor.
(e) "Motor vehicle
dealer" has the meaning given under s. 218.01(1)(n).
(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.
(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.
(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.
(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) 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.
(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.
