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2023 - 2024 LEGISLATURE
2023 ASSEMBLY BILL 14
February 7, 2023 - Introduced by Representatives TITTL, PRONSCHINSKE, EDMING,
MURPHY, MURSAU, ROZAR, TUSLER and WICHGERS, cosponsored by Senator
JACQUE. Referred to Committee on Consumer Protection.
***AUTHORS SUBJECT TO CHANGE***
AN ACT to create subchapter XI of chapter 218 [precedes 218.60] of the statutes;
relating to: repair and replacement of implements of husbandry under
warranty.
Analysis by the Legislative Reference Bureau
This bill creates requirements, commonly known as a “lemon law,” for the repair
and replacement of an implement of husbandry that has a condition or defect
(nonconformity) that substantially impairs the use, value, or safety of the implement
of husbandry and that is covered by an express warranty.
Under the bill, if an implement of husbandry does not conform to an applicable
express warranty, and the consumer reports the nonconformity to the manufacturer,
the lessor, or any of the manufacturer's authorized dealers and makes the implement
of husbandry available for repair, the manufacturer, lessor, or authorized dealer
must repair the nonconformity. If the same nonconformity has been subject to repair
at least four times and the nonconformity continues, or if the implement of
husbandry is out of service for an aggregate of at least 30 days because of warranty
nonconformities, the consumer is entitled to a replacement implement of husbandry
or a full refund.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
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SECTION 1 ASSEMBLY BILL 14
SECTION 1. Subchapter XI of chapter 218 [precedes 218.60] of the statutes is
created to read:
CHAPTER 218
SUBCHAPTER XI
IMPLEMENTS OF HUSBANDR Y
218.60 Repair and replacement of implements of husbandry under
warranty. (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 an alternative
implement of husbandry.
(b) “Consumer" means any of the following:
1. The purchaser of a new implement of husbandry if the implement of
husbandry was purchased from an authorized dealer for purposes other than resale.
2. A person to whom an implement of husbandry is transferred for purposes
other than resale if the transfer occurs before the expiration of an express warranty
applicable to the implement of husbandry that was extended when the implement
of husbandry was new and first sold by an authorized dealer for purposes other than
resale.
3. A person who may enforce an express warranty applicable to an implement
of husbandry that was extended when the implement of husbandry was new and first
sold by an authorized dealer for purposes other than resale.
4. A person who leases a new implement of husbandry from a lessor under a
written lease.
(c) “Implement of husbandry” has the meaning given in s. 340.01 (24).
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(d) “Nonconformity" means a condition or defect that substantially impairs the
use, value, or safety of an implement of husbandry and that is covered by an express
warranty applicable to the implement of husbandry or to a component of the
implement of husbandry. “Nonconformity” does not include a condition or defect that
is the result of abuse, neglect, or unauthorized modification or alteration of the
implement of husbandry by a consumer.
(e) “Out of service" means that the implement of husbandry is unable to be used
by the consumer either because of a nonconformity for which one or more
unsuccessful attempts to repair have been made and the implement of husbandry
has been returned to the consumer or remains with the consumer awaiting further
repair attempts or because the implement of husbandry is in the possession of the
manufacturer, lessor, or any of the manufacturer's authorized dealers for the
purpose of performing repairs to correct a nonconformity.
(f) “Unsuccessful attempt to repair” means a repair attempt that does not
correct the nonconformity for which the repair work is conducted and for which active
repair work on the nonconformity stops and does not begin again within 24 hours of
the previous repair work.
(2) If an implement of husbandry does not conform to an applicable express
warranty, and the consumer reports the nonconformity to the manufacturer, the
lessor, or any of the manufacturer's authorized dealers and makes the implement of
husbandry available for repair before the expiration of the warranty or one year after
first delivery of the implement of husbandry to a consumer, whichever is sooner, the
manufacturer, lessor, or authorized dealer shall repair the nonconformity.
(3) If a manufacturer, lessor, or authorized dealer attempts to repair a
nonconformity not fewer than 4 times and the nonconformity is not repaired, or if an
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implement of husbandry is out of service for an aggregate of not less than 30 days,
the consumer is entitled to a replacement or refund, and the manufacturer shall do
one of the following as directed by the consumer:
(a) Accept return of the implement of husbandry and replace the implement of
husbandry with a comparable new implement of husbandry and refund any
collateral costs.
(b) Accept return of the implement of husbandry and refund to the consumer
and to any holder of a perfected security interest in the consumer's implement of
husbandry, 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.
(c) If the implement of husbandry is leased, accept return of the implement of
husbandry, refund to the lessor and to any holder of a perfected security interest in
the implement of husbandry, 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.
(4) A consumer who elects to receive a refund under sub. (3) shall notify the
manufacturer. Not later that 30 days after receiving notice from the consumer, the
manufacturer shall provide the consumer with the refund. Upon receipt of the
refund, the consumer shall return the implement of husbandry having the
nonconformity to the manufacturer.
(5) A consumer who elects to receive a comparable new implement of
husbandry under sub. (3) shall notify the manufacturer. Not later than 45 days after
receiving notice from the consumer, the manufacturer shall provide either a
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comparable new implement of husbandry or, if a comparable new implement of
husbandry does not exist or cannot be delivered within the 45-day period, a refund.
Upon receipt of the new implement of husbandry or the refund, the consumer shall
return the implement of husbandry having the nonconformity to the manufacturer.
(6) A manufacturer, lessor, or manufacturer's authorized dealer may not sell
or lease any nonconforming implement of husbandry returned to the manufacturer
by a consumer unless the manufacturer, lessor, or manufacturer's authorized dealer
discloses the reasons the implement of husbandry was returned to any prospective
buyer or lessee. If a manufacturer fails to disclose in writing at the time of transfer
or sale to a dealer that a nonconforming implement of husbandry was returned to the
manufacturer by a consumer, the manufacturer shall indemnify the dealer for all
costs and expenses the dealer incurs as the result of the manufacturer's failure to
disclose the nonconformity and shall be directly liable under this section to a
consumer who purchases a nonconforming implement of husbandry without having
received the disclosure required under this section.
(7) The department of revenue shall refund to a manufacturer any sales tax
the manufacturer refunded to a consumer under sub. (3) 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 implement of husbandry was
purchased and that the manufacturer refunded the sales tax to the consumer.
(8) This section does not limit rights or remedies available to a consumer under
any other law.
(9) (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 implement of husbandry
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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, attorney fees, or costs that may be awarded under
par. (a), strike pleadings, or enter default judgment against the offending party.
(END)
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