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    Wisconsin Lawyer
    October 01, 2003

    Revisiting Wisconsin's Home Improvement Code - Figures 1 & 2

    Prohibited trade practices and a checklist for contractors.

    Mark Hinkston

    Wisconsin Lawyer
    Vol. 76, No. 10, October 2003

    Figure 1
    Prohibited Trade Practices

    Identity & Sales Materials & Products Pricing Performance Competitors
    Home entry under uise of governmental inspection Misrepresenting product brand name,quality, quantity, size, nature Misrepresenting that having close-out sale Accepting payment for labor or materials that will not be provided Interference with competitors
    Misrepresenting status in company Misrepresenting that component is "custom-built" Nondisclosure of delivery/ installation fees Pressure tactics Misrepresenting that services are equal to or superior to that of a competitor
    "Bait and switch" tactics Substituting materials without buyer consent Nondisclosure of interest or finance charges Receipt of final payment before completion Using competitor's trademarks, names, or labels
    Misrepresenting that home to be used as "model home"   Using payment before completion for purpose unrelated to project Failing to issue lien waivers  
    False advertising     Failing to give timely notice of delay  

    Figure 2
    Checklist for Contractors

    Project Stage Contractor Responsibility Statute/Regulation
    Precontract

    1) Inform buyer of necessary permits

    ATCP 110.03(1)
     

    2) Comply with financial responsibility certification law
    3) Inform buyer of right to obtain lien waivers

    Wis. Stat. § 101.654
    ATCP 110.02(6)(n)

    Contract

    1) Include all terms and conditions, including:
    Seller's name and address
    Description of work
    Total price (include finance charges)
    Start and completion date
    Warranty
    ATCP 110.05(2)
    Three-day Right to Cancel notice Wis. Stat. § 423.202

    2) Provide warranty information

    ATCP 110.04

    3) Have buyer sign

    110.05(2)

    4) Provide copy to buyer

    110.05(3)

    5) Put modifications/ substitutions/changes in writing

    110.05(1); 110.02(3)(d), (7)(c)

    Performance

    1) Perform as promised ATCP 110.02(7)(b)

    2) Do not misappropriate payments

    110.02(10)

    3) No misrepresentations

    110.02

    4) Notify of impending delay

    110.02(7)(c)

    5) Provide proportionate lien waivers as payments are made;

    provide final lien waivers upon completion

    110.02(6)(l) - (m)
    110.02(6)(e)

    6) No right to final payment until certificate of inspection/ completion provided

     

    Buyer Cancellation

    1) Buyer may cancel if contractor fails to meet contractual deadline and there is no notice of impending justifiable delay and failure to obtain agreement to a new performance deadline
    2) Cancellation must be in writing and may include demand for return of unexpended payments, return of materials, and written accounting
    ATCP 110.07(2), (3)

    Seller's Duties Upon Cancellation

    1) Return unexpended payments within 15 days
    2) Return materials within 15 days or 5 days of delivery from supplier, whichever occurs later
    3) Provide written accounting within 30 days
    ATCP 110.07(4)

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