AB 14 — Relating to: repair and replacement of implements of husbandry under warranty.

- 2024 LEGISLATURE LRBa0223/1LRB-0802/1 ZDW:cdcZDW:wlj ASSEMBLY AMENDMENT 1, TO ASSEMBLY BILL 14 MayFebruary 26,7, 2023 - OfferedIntroduced by RepresentatiITTL.Representatives TITTL, RONSCHINSKE , EDMING , M URPHY, M URSAU, ROZAR , TUSLER and W ICHGERS, cosponsored by Senator JACQUE.

AtReferred theto locationsCommittee indicated,on amendConsumer theProtection. bill as follows:

A N A CT 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:

- 2024 Legislature - 2 - LRB-0802/1 ZDW:wlj ASSEMBLY BILL 14 SECTION 1 SECTION 1.

Subchapter XI of chapter 218 [precedes 218.60] of the statutes is created to read:

CHAPTER 218 SUBCHAPTER XI IMPLEMENTS OF HUSBANDRY 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:

PageThe 2,purchaser lineof 10:a new implement of husbandry if the implement of husbandry was purchased from an authorized dealer for purposes other than resale.

after “husbandry." insert ““Collateral costs” does not include incidental or consequential damages, including loss of profits as a result of a nonoperational implement of husbandry.".

PageA 3,person lineto 5: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.

after “neglect," insert “failure to operate and maintain the implement of husbandry in accordance with the manufacturer's operator's manual and recommended maintenance schedule,".

PageA 3,person linewho 8: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.

substitute “2" for “one".

PageA 3,person linewho 13:leases a new implement of husbandry from a lessor under a written lease.

substitute(c) “the“Implement same"of forhusbandry” “a".has the meaning given in s.

5.340.01 (24).

PageLRB-0802/1 3,- line2024 24:Legislature - 3 - ZDW:wlj SECTION 1 ASSEMBLY BILL 14 (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.

delete“Nonconformity” “If"does andnot substituteinclude “If,a beforecondition or defect that is the expirationresult of theabuse, warrantyneglect, or oneunauthorized yearmodification afteror firstalteration delivery of the implement of husbandry,husbandry whicheverby isa earlier,".consumer.

LRBa0223/1(e) -“Out 2024of Legislatureservice" -means 2that -the ZDW:cdcimplement 6.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.

Page(f) 4,“Unsuccessful lineattempt 6: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.

delete(2) “costs."If an implement of husbandry does not conform to an applicable express warranty, and substitutethe “costs,consumer reports the nonconformity to the extentmanufacturer, thatthe 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 doesshall notrepair mitigatethe collateralnonconformity. costs.".

7.(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 - 2024 Legislature - 4 - LRB-0802/1 ZDW:wlj ASSEMBLY BILL 14 SECTION 1 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:

Page(a) 4,Accept linereturn 22:of the implement of husbandry and replace the implement of husbandry with a comparable new implement of husbandry and refund any collateral costs.

delete(b) “manufacturer."Accept andreturn substituteof “manufacturerthe implement of husbandry and providerefund to the manufacturerconsumer withand theto certificateany holder of titlea forperfected security interest in the consumer's implement of husbandryhusbandry, andas alltheir endorsementsinterest necessarymay toappear, transferthe full purchase price plus any sales tax, finance charge, amount paid by the titleconsumer toat the manufacturer.point of sale, and collateral costs, less a reasonable allowance for use.

(c) If anotherthe personimplement of husbandry is inleased, possessionaccept return of the certificateimplement of title,husbandry, asrefund shownto bythe recordslessor and to any holder of a perfected security interest in the departmentimplement of transportation,husbandry, thatas persontheir shall,interest uponmay requestappear, the current value of the consumer,written providelease, and refund to the manufacturerconsumer withthe amount the certificateconsumer ofpaid titleunder uponthe satisfactionwritten oflease plus any securitysales interesttax theand personcollateral hascosts, inless thea implementreasonable ofallowance husbandry.”.for use.

8.(4) A consumer who elects to receive a refund under sub.

Page(3) 5,shall linenotify 23:the manufacturer.

deleteNot thelater materialthat beginning30 withdays thatafter linereceiving andnotice endingfrom withthe pageconsumer, 6,the linemanufacturer 10.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 LRB-0802/1 - 2024 Legislature - 5 - ZDW:wlj SECTION 1 ASSEMBLY BILL 14 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.