STANDARDS OF THE WISCONSIN LEMON LAW

The following is a brief explanation of most relevant provisions of the Wisconsin lemon
law.  The complete text of the lemon law can be found at Wisconsin Statutes § 218.0171.
VEHICLES COVERED
The Wisconsin lemon law covers any motor driven vehicle that (1) is required to be
registered or is exempt from registration as a nonresident or foreign-registered vehicle,
and (2) a consumer purchases or accepts transfer of in Wisconsin. This includes a
demonstrator or executive vehicle, but does not include mopeds, semitrailers, or trailers
designed for use in combination with a truck or truck tractor.
The lemon law does not cover previously -owned vehicles. 1
CONSUMERS COVERED
The lemon law covers any of the following “consumers”: 
1.   The purchaser of a new motor vehicle, if the vehicle was purchased from a dealer for
purposes other than resale;
2.   A person to whom the motor vehicle is transferred during the warranty period unless
the vehicle is transferred for purposes of resale;
3.   A person who may enforce the vehicle’s warranty; and
4.   A person who leases a motor vehicle under a written lease.
The lemon law does not cover a former lessee who purchases the vehicle at the
expiration of the lease term.2
VEHICLE CONVERTERS
The lemon law applies to vehicle converters.
PROBLEMS COVERED
The lemon law covers vehicle “nonconformities.” A nonconformity is defined as a
condition or defect that (1) is covered by an express warranty of the manufacturer3
applicable to the motor vehicle or to a component of the motor vehicle and (2)
substantially impairs the use, value or safety of a motor vehicle. A nonconformity does
not include a condition or defect that is the result of abuse, neglect, or unauthorized
modification or alteration of a motor vehicle by a consumer.

1  Schey v. Chrysler Corp. , 228 Wis.2d 483 (Ct. App.), review denied 228 Wis.2d 174 (1999).
2 Varda v. General Motors Corp., 242 Wis.2d 756 (Ct. App.), review denied 246 Wis.2d 174 (2001).
3 Malone v. Nissan Motor Corp., 190 Wis.2d 437 (Ct. App. 1994); Bushendorf v. Freightliner Corp., 13
F.3d 1024 (7 th Cir. 1993).

MANUFACTURER’S DUTY TO REPAIR
A nonconformity must be repaired if, before the expiration of the warranty or one year
after the vehicle’s first delivery to the consumer – whichever is sooner, the consumer
reports the nonconformity to the manufacturer, lessor, or the any of manufacturer’s
authorized dealers and makes the vehicle available for repair.
MANUFACTURER’S DUTY TO REPURCHASE OR REPLACE A VEHICLE 
If after a reasonable attempt to repair the nonconformity is not repaired, the
manufacturer must either repurchase the vehicle or, if the vehicle is owned, replace the
vehicle.  [The Wisconsin lemon law does not provide for replacement of a leased
vehicle.]
REASONABLE NUMBER OF REPAIR ATTEMPTS
The Wisconsin lemon law defines “reasonable attempt to repair” as the occurrence of
any of the following within the term of a vehicle’s warranty or within one year after the
vehicle’s first delivery to a consumer, whichever is sooner: 
1.   The same nonconformity is subject to repair by the manufacturer, lessor, or any  of
the manufacturer’s authorized dealers at least four times and the nonconformity
continues.  A nonconformity may be “subject to repair” if the vehicle was presented
to the dealership for repair4 ; or
2.   The vehicle is out of service for an aggregate of at least 30 days because of warranty
nonconformities.  A vehicle is out of service if it is not capable of rendering service as
warranted due to a nonconformity, even though the vehicle may be in possession of
the consumer and may still be driven by the consumer5 , as long as the consumer
provided notice and made the vehicle available for repair.6
NOTICE
To receive a replacement or refund, a consumer must notify the manufacturer to request
one of these remedies7  and must offer to transfer title of the motor vehicle to the
manufacturer.
DISPUTE RESOLUTION
If a manufacturer participates in an informal dispute settlement procedure and that
procedure has been certified by the Department of Transportation as complying with
applicable regulations, a consumer may not bring an action in court under the lemon
law unless the consumer first resorts to that informal dispute settlement procedure.

4 Chmill v. Friendly Ford-Mercury of Janesville, Inc., 144 Wis.2d 796 (Ct. App. 1988).
5 Vultaggio v. General Motors Corp., 145 Wis.2d 874 (Ct. App. 1988).
6 Carl v. Spickler Ent., Ltd., 165 Wis.2d 611 (Ct. App. 1991).
7  Berends v. Mack Truck, Inc., 252 Wis.2d 371 (Ct. App. 2002).

REMEDIES UNDER WISCONSIN LEMON LAW

REPURCHASE OF AN OWNED VEHICLE
The Wisconsin lemon law sets out the following amounts that a manufacturer must pay
when it repurchases an owned vehicle under the lemon law: 
1.   The full purchase price (not including any cash rebate8 ); 
2.   Sales taxes paid by the consumer, as well as any other amounts paid by the consumer
at the point of sale;
3.   Finance charges incurred by the consumer; and
4.   Collateral costs, which are defined as expenses incurred by a consumer in connection
with the repair of a nonconformity, including the costs of obtaining alternative
transportation;
5.   Less a reasonable allowance for the vehicle’s use.
Refunds must be made to the vehicle owner and to any holder of a perfected security
interest in the vehicle, as their interests may appear.  When the manufacturer provides
the refund, the consumer must return the nonconforming motor vehicle to the
manufacturer and provide the manufacturer with the certificate of title and all
endorsements necessary to transfer title to the manufacturer.
The Wisconsin lemon law provides that a reasonable allowance for a vehicle’s use is
subtracted from the amounts that a manufacturer must pay when it repurchases a
vehicle under the lemon law. This reasonable allowance for use may not exceed the
amount set out in the following formula for an owned motor vehicle: 
reasonable        # miles vehicle driven before           vehicle
allowance    =   nonconformity first reported to    X   purchase
for use            motor vehicle dealer                         price
--------------------------------------
100,000
In computing the reasonable allowance for use of a motorcycle, the denominator should
be changed from 100,000 to 20,000.
REPURCHASE OF A LEASED VEHICLE
The Wisconsin lemon law sets out the following amounts that a manufacturer must pay
when it repurchases a leased vehicle under the lemon law:
To the lessor: The current value of the written lease. This is defined as –
1.   The total amount for which the lease obligates the consumer during the period of the
lease remaining after its early termination;

8 Church v. Chrysler Corp., 221 Wis.2d 460 (Ct. App. 1998).

2.   The motor vehicle dealer’s early termination costs [any expenses or obligation the
lessor incurs as a result of early termination]; and
3.   The value of the motor vehicle at the lease expiration date if the lease sets forth that
value; 
4.   Less the motor vehicle lessor’s early termination savings [any expenses or obligation
the lessor avoids as a result of early termination of the lease and the vehicle’s return].
This includes any interest charges the lessor would have paid to finance the motor
vehicle. If the lessor does not finance the vehicle, the early termination savings
includes the difference between the total amount for which the lease obligates the
consumer during the period of the lease term remaining after the early termination
and the present value of that amount at the date of the early termination. 
To the lessee:
1.   The amount the consumer paid under the written lease; and
2.   Any sales tax and collateral costs [expenses incurred by a consumer in connection
with the repair of a nonconformity, including the costs of obtaining alternative
transportation];
3.   Less a reasonable allowance for the vehicle’s use.
When the manufacturer provides the refund, the consumer must return the
nonconforming motor vehicle to the manufacturer.  The lessor must provide to the
manufacturer the certificate of title and all endorsements necessary to transfer title to
the manufacturer.
The Wisconsin lemon law provides that a reasonable allowance for a vehicle’s use is
subtracted from the amounts that a manufacturer must pay when it repurchases a
vehicle under the lemon law. This reasonable allowance for use may not exceed the
amount set out in the following formula for a leased motor vehicle:
reasonable     # miles vehicle driven before           total amount for
allowance    = nonconformity first reported to   X   which the lease
for use          manufacturer, dealer, or lessor        obligates consumer
--------------------------------------
100,000
In computing the reasonable allowance for use of a motorcycle, the denominator should
be changed from 100,000 to 20,000. 
REPLACEMENT OF AN OWNED VEHICLE
The Wisconsin lemon law provides that a replacement vehicle must be a comparable
new vehicle.  A demonstrator may be a comparable replacement if the returned vehicle

was also a demonstrator.9   The reasonable allowance for use does not apply to a
replacement.1 0
When the manufacturer replaces a vehicle, it must also refund any collateral costs
[expenses incurred by a consumer in connection with the repair of a nonconformity,
including the costs of obtaining alternative transportation].
When the manufacturer provides the replacement motor vehicle, the consumer must
return the nonconforming motor vehicle to the manufacturer and provide the
manufacturer with the certificate of title and all endorsements necessary to transfer title
to the manufacturer.