Wisconsin now adheres to new RV dealer-manufacturer regulations as outlined by Wisconsin Act 164. The legislation establishing RV-specific franchise law took effect Oct. 1.
Wisconsin Gov. Tony Evers signed the legislation in March. The law regulates towable RVs while motorhomes will remain under automobile franchise laws. The law establishes various changes to dealer and manufacturer procedures.
The legislation modifies the recreational vehicle (RV) definition to extend the maximum RV length from 45 feet to 46 feet. The law categorizes camping trailers, fifth wheel RVs, park model RVs and travel trailers as RVs.
The act addresses the Department of Transportation’s RV sales regulations. The changes include new manufacturer license requirements for any manufacturer that sells RVs in Wisconsin.
Dealer and Manufacturer Relations Regulations
The act sets forth requirements regulating dealer, distributor and manufacturer relationships.
Dealer Agreements
A manufacturer must enter into a dealer agreement to sell an RV to or through a dealer in the state. A dealer may not sell a new RV in Wisconsin without a dealer agreement with a manufacturer. Agreements must include specific components including a protected trade area.
Dealer Agreement Termination
The act outlines procedures for terminating, canceling or failing to renew a dealer agreement. A manufacturer can only terminate, cancel or fail to renew a dealer agreement for good cause. Dealers can terminate, cancel or fail to renew a model, make, line or entire agreement with or without good cause. Dealers can do this at any time by giving the manufacturer written notice 30 days in advance. If the dealers show good cause exists to terminate the agreement, the manufacturer or distributor is required to repurchase certain inventory if the dealer chooses.
Dealer Ownership Changes
Dealers wishing to change ownership must give the manufacturer or distributor written notice at least 10 business days before the closing date. The dealer must provide certain documents with the notice. The manufacturer or distributor may not object to the proposed change except for certain specified reasons.
Warranty Obligations
A warranty must specify dealer obligations in writing and compensate the dealer for warranty services performed that are covered under the warranty. The warranty must also provide the dealer with a schedule of compensation to be paid and the time allowances for the performance of any work and service.
RV Inspections
The act addresses dealer, distributor and manufacturer inspection obligations for new RVs that are damaged before transit or in transit to the dealer when the manufacturer or distributor has selected the means of transportation.
Dispute Resolution
The legislation provides mechanisms for dealer, manufacturer and warrantor dispute resolutions. Any party injured by another party’s violation of the act by must attempt to resolve the dispute through mediation before bringing it to civil action.
Rep. Scott Klug sponsored the law. RVIA and the Wisconsin RV Dealers Alliance jointly supported the law. For further information, contact RVIA Director of State Government Affairs Michael Ochs at [email protected].
