Wis. Admin. Code Department of Transportation § Trans 138.02 - Definitions

Words and phrases defined in ch. 218, Stats., have the same meaning in this chapter unless additional interpretations are specified.

(1) "Auction dealer" means a person who for compensation takes possession, whether through consignment or bailment or any other arrangement, of a motor vehicle owned by a motor vehicle dealer and offers it for sale at an auction open only to motor vehicle dealers or wholesalers.
(2) "Compensation" means commission, money, goods, services, or other thing of value. The term includes any increase in the value or attractiveness of membership, affiliation, or employment with a club, association, corporation, government agency, or other organization.
(2m) "Day" means calendar day, unless otherwise stated in this chapter. The provisions of s. 990.001(4), Stats., apply to calculations of time under this chapter, except that a legal holiday shall be counted as a day if the dealer is open for business.
(3) "Department" means the Wisconsin department of transportation.
(4) "Incidental sales" mean sales of motor vehicles incidental to their owner's primary business activities. Vehicle sales are incidental to their owner's primary business activities if the owner provides a service, manufactures a product, or is engaged in some other clearly identifiable business activity which is demonstrably distinct from the sale of motor vehicles or their lease with an option of purchase; and if the vehicles are purchased and used primarily to serve the transportation needs of the owner's business or its employees in their work.
(5) "Lease with the option of purchase" means to rent or lease a vehicle to a person with an option or right to buy the vehicle, whether or not the option or right to purchase is described in the rental or leasing contract. The term includes offering contracts to prospective lessees.
(5g) "Motor vehicle dealer" or "dealer" has the meaning provided in s. 218.0101(23) (a), Stats.
(5r) "Motor vehicle salesperson" or "salesperson" has the meaning provided in s. 218.0101(24), Stats.
(6) "Negotiate a sale or exchange of an interest in motor vehicles" means any bargaining by a person other than a prospective retail buyer over the terms of a motor vehicle sale, exchange, or lease with an option of purchase. The term includes establishing or offering to establish agreements with dealers or other vehicle owners concerning the conditions under which the owners may sell their vehicles or lease them with an option of purchase to any person or group of persons. Such conditions may include vehicle prices or discounts, formulas for determining prices, or criteria for determining a consumer's eligibility for these or other conditions of sale.
(6m) "Pay-off" means the outstanding balance of any note or loan secured by a lien on a vehicle, or in the case of a leased vehicle, the lease buy out.
(7) "Perfect or case bound" means a book that is permanently bound by gluing, stitching or both.
(8) "Privately titled" means a vehicle owned by a person who acquired the vehicle through a bona fide sales transaction in which anything of substantial value was exchanged to acquire ownership of the vehicle for purposes other than lease, rental or resale, and the person is not a motor vehicle manufacturer, final stage manufacturer, converter, distributor, wholesaler, motor vehicle dealer, auction dealer, or leasing or rental company.
(9) "Retail auctioneer" means a person who for compensation takes possession of a motor vehicle owned by another person, whether through consignment or bailment or any other arrangement, and offers the vehicle for sale to retail buyers by auction.
(10) "Sell" means to transfer or offer to transfer ownership of a motor vehicle for compensation, whether or not the person executing or offering to execute the transfer owns the vehicle. Selling includes all of the following:
(a) Displaying, depicting, or describing the vehicle to potential purchasers and indicating by any means that the person is willing to sell the vehicle or accept an order for the vehicle's future sale or the sale of a similar vehicle.
(b) Executing or offering to execute a lease with a requirement that the lessee purchase the vehicle.
(c) Accepting or negotiating an order to purchase a vehicle placed by fax, telephone, the Internet, mail or some other means with a person within this state, if the vehicle purchased as a result of the order is delivered to the purchaser at a location within this state.

Note: This definition of "selling" includes the activities of consignment dealers, who may display vehicles and negotiate sales on behalf of the vehicles' owners.

(a) "Services aiding the sale" of motor vehicles means describing or displaying specific vehicles or representing the conditions under which they are available for sale or lease with an option of purchase to prospective buyers or lessors. These services may include advertising, displaying vehicles, or soliciting bids on vehicles available for sale or lease with an option of purchase.
(b) The services in par. (a) do not include providing general advice or information to prospective buyers, sellers, lessors, or lessees on issues concerning the buying, selling, or leasing of motor vehicles, provided the information does not include representations of specific vehicles available for sale or lease with an option of purchase.
(c) The services in par. (a) do not include a financial institution offering, negotiating, or consummating a motor vehicle loan.
(11m) "Title" means certificate of title issued by the Wisconsin department of transportation under ch. 342, Stats., or by another state in conformity with its applicable law, as evidence of ownership of a specific vehicle.
(12) "Titled owner" means the person named as the owner on the face of the most recent certificate of title issued for the vehicle. The term does not include a person named in a reassignment of the title.
(13) "Used motor vehicle" has the same meaning as in s. Trans 137.03(9).
(14) "Wholesaler" or "wholesale dealer" means a person, other than a licensed motor vehicle dealer or licensed motor vehicle auction dealer, who does any one of the following:
(a) Sells more than 5 used motor vehicles in any 12 month period to motor vehicle dealers, other wholesalers, motor vehicle auction dealers or salvage dealers;
(b) Purchases used motor vehicles at a motor vehicle auction dealer; or,
(c) Purchases used motor vehicles on behalf of motor vehicle dealers, unless the person buying the vehicles satisfies both the following conditions:
1. The person is employed by and receives compensation from one and only one dealer for services related to the sale or purchase of motor vehicles; and
2. The person conducts all financial transactions involving the sale or purchase of motor vehicles in the name of the employing dealer, under the dealer's supervision, and using the dealer's funds and financial accounts.


Wis. Admin. Code Department of Transportation § Trans 138.02
Cr. Register, July, 1981, No. 307, eff. 8-1-81; cr. (intro.), (1), (2), (4) to (6) and (8) to (14), renum. (1) and (2) to be (3) and (7), Register, June, 1991, No. 426, eff. 7-1-91; CR 99-135: cr. (2m), (5g), (5r) and (6m), am. (10) Register February 2004 No. 578, eff. 3-1-04; CR 08-029: cr. (11m) Register August 2008 No. 632, eff. 9-1-08.

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