How should Wisconsin dealers handle known defects in a used vehicle?

• A. They may disclose defects only if asked by the buyer.
• B. They should fix all defects before sale and charge the buyer.
• C. They must disclose known defects in writing to the buyer prior to completing the sale.
• D. They may omit minor defects to avoid scaring buyers.

Answer: (C)

Known defects must be disclosed in writing to the buyer before the sale is completed. This requirement helps ensure the buyer has full information about any safety or value issues, so they can make an informed decision, negotiate, or walk away if needed. It also protects the dealer from misrepresentation claims by showing a documented effort to be honest about known problems.

Disclosing only if asked or omitting defects to avoid scaring buyers aren’t compliant approaches because the obligation is proactive and documented. Dealers aren’t required to fix every defect and bill the buyer, and hiding known issues undermines trust and can lead to penalties.