Wis. Admin. Code Department of Transportation Trans 139.06 - Warranties

For the purpose of this chapter, service contracts are not considered warranties, but for the purposes of disclosure and performance as provided in subs. (1) through (7) and in sub. (10), the term "warranty" shall include service contracts.

(1) CONTENTS. If a sale of a motor vehicle by a licensee is made subject to a warranty, the warranty shall be in writing and shall be provided to the purchaser at the time of delivery of the vehicle and shall include the following items:

(a) Clear identification of the names and addresses of the warrantors.

(b) Clear identification of the purchaser to whom the warranty is extended.

(c) Parts covered. Use of the terms "power train" or "drive train" to describe parts or systems covered is prohibited.

(d) Exceptions and exclusions from the terms of the warranty.

(e) A statement of what the warrantor shall do in the event of a defect or malfunction, at whose expense and for what period of time.

(f) A statement of what the purchaser shall do and expenses the purchaser shall bear.

(g) The procedure the purchaser should take in order to obtain performance of any obligation under the warranty, including the identification of any class of persons authorized to perform the obligations set forth in the warranty.

(2) DISCLOSURE. The elements of the warranty shall be stated in words or phrases which clearly disclose the nature or scope of the warranty.

(3) IMPLIED WARRANTY. No implied warranty of merchantability or fitness shall be excluded in the sale of a motor vehicle unless the sale is explicitly negotiated between the purchaser and dealer licensee on an" AS IS-NO WARRANTY" basis and is in conformity with s. Trans 139.04(6) (a) 5. No implied warranty of merchantability or fitness shall be modified or limited, except that implied warranties may be limited to the duration of a written limited warranty of reasonable duration.

(4) ADVERTISING. Warranties shall not be advertised unless the basic terms and conditions of the warranty are disclosed in the advertisement.

(5) WITHOUT CHARGE. The use of the words "without charge" and other similar words or phrases in connection with the warrantor's services or responsibilities under a warranty constitutes an unfair practice and is prohibited unless the warrantor does not assess any costs or charges in connection with the required repair or replacement of a warranted item or services.

(6) EXTENDED WARRANTY. If a valid warranty claim made during the warranty period, as evidenced by a dealer repair order indicating date and mileage, cannot be remedied until after expiration of the warranty period, the warrantor shall continue to be obligated for the claim until properly remedied.

(7) REPLACEMENT PARTS. Parts repaired or replaced by a dealer licensee on a new vehicle which was received from the manufacturer or distributor in a damaged condition shall carry the same warranty as the original parts, provided the parts are approved for use by the vehicle manufacturer or distributor for repair or replacement.

(9) WARRANTY LABOR REIMBURSEMENT COMPLAINTS. Any department determination or licensing action based on a warranty labor complaint shall be based upon the information submitted to the department by the parties involved. The department shall not be required to conduct any on-site investigations or informational hearings.

(10) WARRANTOR BASIC OBLIGATION.

(a) It is an unfair practice and prohibited for a warrantor to fail to service or repair a motor vehicle in accordance with the terms and conditions of the warranty or service contract.

(b) A dealer shall service or repair a motor vehicle under the same terms and conditions as a manufacturer warranty if dealer provides information to the purchaser that there is a remaining manufacturer warranty on the vehicle that will be honored by the manufacturer, and the vehicle is not warranted or the manufacturer subsequently rejects a request to transfer the warranty to the purchaser.

(c) A dealer shall service or repair a motor vehicle part under the same terms and conditions as a part manufacturer warranty if the dealer provides information to the motor vehicle purchaser that there is a remaining part manufacturer warranty on a vehicle part for which there is no warranty or that the warrantor refuses to transfer to purchaser.

(d) A dealer shall service or repair a motor vehicle under the same terms and conditions as a third party warranty if, before the purchaser accepts delivery of the motor vehicle, dealer provides information to the purchaser that there is a remaining third-party warranty on the vehicle that will be honored by the third party warrantor and the vehicle is not warranted or the third party subsequently rejects a request to transfer the warranty to the purchaser.

(e) Under this subsection, a dealer's obligation to honor a warranty that the dealer improperly discloses or disclaims to the purchaser is limited to providing motor vehicle service and repairs under the same terms and conditions the original warrantor would have been obligated to honor. A dealer's obligation to honor a warranty is also limited by the expiration date or mileage set forth under the motor vehicle manufacturer, third party or part manufacturer warranty, or until the motor vehicle attains the age or mileage the dealer discloses to the purchaser in the Motor Vehicle Purchase Contract, in accordance with s. Trans 139.05(2) (f), whichever is later.

Notes

Wis. Admin. Code Department of Transportation Trans 139.06

Cr. Register, March, 1973, No. 207, eff. 4-1-73; cr. (9), Register, June, 1974, No. 222, eff. 7-1-74; renum. MVD 24.06 (2) to be MVD 24.05 (10), Register, December, 1975, No. 240, eff. 1-1-76; am. (3), Register, April, 1977, No. 256, eff. 5-1-77; renum. from MVD 24.05 and am., Register, December, 1982, No. 324, eff. 1-1-83; am. (1) (c), Register, May, 1986, No. 365, eff. 6-1-86; correction in (3) made under s. 13.93(2m) (b) 7, Stats., Register, May, 1997, No. 497; correction in (8) made under s. 13.93(2m) (b) 7, Stats., Register July 2002 No. 559; CR 99-135: am. (intro.) and (10), cr. (10) (b) to (e) Register February 2004 No. 578, eff. 3-1-04. Amended by, CR 19-059: r. (8) Register March 2020 No. 771, eff. 4/1/2020

A dealer is not required to ascertain whether remaining warranty is available if the dealer does not provide information to the purchaser that there is a remaining warranty available for transfer to the vehicle purchaser, except that new car dealers should ascertain availability of remaining manufacturer warranties for used cars of the same line make for which the dealer holds a franchise.