Section 109.03. Contract requirements.

 

(1)   Service plan. Any seller of a food service plan which does not involve an extension of credit shall comply with the following:

(a) Give the buyer at the time of execution a true copy of the contract, which shall include its date of execution and all terms and conditions of the sale and a copy of any price list, guarantee, service agreement or other document incorporated or referred to in the contract.

(b) Print clearly and conspicuously on the contract the name and mailing address of the seller.

(c) All blank spaces shall be filled in or a line drawn through them before the contract is signed by the buyer.

(d) When a representation is made that insurance will be provided, the terms, conditions and limitations thereof, as well as the name and address of the insurer if different from the seller shall be set forth in the contract or in a separate insurance policy. The individual policy, group certificate or notice of proposed insurance shall be furnished to the buyer prior to execution of the contract. If the individual policy is not furnished at the time the contract is executed, the contract shall state when the individual policy will be furnished to the buyer.

(2)   Cancellation.

(a) In all transactions which are not consumer approval transactions, the buyer shall have the right to cancel the contract until midnight of the third business day (as defined in s. 421.301 (6) , Stats.) after the seller has given the notice to the buyer in accordance with this chapter. Notice of cancellation may be given by delivering or mailing written notice thereof, signed by the buyer, to the seller at the address set forth in the contract. Notice of cancellation given by mail shall be considered given at the time mailed. Notice of cancellation need not take any particular form and is sufficient if it indicates by any form of written expression the intention of the buyer not to be bound by the contract.

(b) The seller shall give 2 copies of a typed or printed notice to the buyer. The notice must:

1. Be printed in capital and lowercase letters of not less than 12-point boldface type;

2. Appear under the conspicuous caption: "CUSTOMER'S RIGHT TO CANCEL";

3. Read as follows: "You must cancel this agreement by mailing a written notice to (insert name and mailing address of seller) before midnight of the third business day after you signed this agreement. If you wish, you may use this page as that notice by writing "I hereby cancel" and adding your name and address. A duplicate of this page is provided by the seller for your records."

4. Compliance with requirements of federal statutes, rules or regulations governing form of notice of right of cancellation shall be deemed to satisfy the notice requirements of this chapter, provided such compliance does not deprive the customer of any rights or benefits the customer would otherwise enjoy under Wisconsin law.

(c) Within 10 days after the contract has been cancelled, the seller shall cause any money paid by the buyer, including a downpayment, to be returned to the buyer and shall take any appropriate action to reflect the termination of the transaction including any security interest created as a result.

(d) In the event that cancellation pursuant to par. (a) occurs subsequent to the delivery of any goods by the seller, the buyer has the duty to take reasonable care of the goods in the buyer's possession before cancellation and for a reasonable time after tender, not to exceed 20 days. If the seller fails to comply with any of the provisions of par. (c) , the seller is not entitled to any of the right or remedies set forth in this paragraph.

(3)  If any part of a contract is to be performed by a person other than the seller, the contract and all advertisements shall fully and conspicuously disclose the name and address of the person responsible for performance.

(4)  Every contract executed in connection with an initial sales transaction shall bear separately on its face the following statement:

"This contract is governed by ch. ATCP 109 , Wis. Adm. Code, administered by the Wis. Dept. of Agriculture, Trade and Consumer Protection. Every holder takes subject to claims and defenses of the maker or obligor."

(5)  Every contract shall state clearly and separately the total net price of food products sold; total net price of non-food products sold; service or delivery charges; and membership fees or similar charges.

(6)  Every contract shall describe separately all terms and conditions of any guarantee or warranty, including exclusions and time limitations, cost of repairs and replacement parts, labor or service charges, and replacement of unsatisfactory or unused product. If any part of the guarantee or warranty is given or is to be performed by any person other than the seller, that fact and the name and address of such person shall be stated in the contract. Any manufacturer's guarantee or warranty for a non-food product shall be furnished to the buyer upon delivery of such product.

(7)  Every contract which includes a food freezer shall state specifically the brand or trade name, model number and year, and size or capacity of the freezer.

(8)  Contract provisions for liquidated damages for breach by the buyer shall be reasonable and in no event shall exceed 10% of the contract price or $25, whichever is less.

(9)  Contracts shall not contain any provision whereby the buyer agrees to waive any rights or defenses the buyer may have under this chapter.

(10)  No provision of this chapter shall be deemed to relieve the seller of any obligation the seller might otherwise have under the Wisconsin Consumer Act.

History: Cr. Register, September, 1967, No. 141 , eff. 1-1-68; am. (1), (3), (4), (8) and (9), Register, December, 1967, No. 144 , eff. 1-1-68; am. (4) (a) to (c), cr. (4) (d) and (e), am. (8) and cr. (13), Register, May, 1968, No. 149 , eff. 6-1-68; r. and recr. Register, June, 1975, No. 234 , eff. 7-1-75; corrections made under s. 13.93 (2m) (b) 5., Stats., Register, April, 1993, No. 448 ; am. (4), Register, June, 1999, No. 522 , eff. 7-1-99.