TENNESSEE LEMON LAW:
Tennessee Lemon Law Statutes
Title 55, Chapter 24, Motor Vehicle Warranties
55-24-201. Definitions.
As used in this part, unless the context otherwise requires:
(1) "Consumer" means the purchaser (other than for purposes of resale) or the
lessee of a motor vehicle, any person to whom such motor vehicle is transferred
during the duration of an express warranty applicable to such motor vehicle, and
any other person entitled by the terms of such warranty to enforce the
obligations of the warranty. "Consumer" does not include any governmental entity
or any business or commercial entity which registers three (3) or more vehicles;
(2) "Lessee" means any consumer who leases a motor vehicle pursuant to a written
lease agreement by which a manufacturer's warranty was issued as a condition of
sale or which provides that the lessee is responsible for repairs to such motor
vehicle;
(3) "Motor vehicle" means a motor vehicle as defined in § 55-1-103, which is
sold and subject to the registration and certificate of title provisions in
chapters 1-6 of this title in the state of Tennessee, and classified as a Class
C vehicle according to § 55-4-111. For the purposes of this part, "motor
vehicle" does not include motorized bicycles as defined in § 55-8-101, motor
homes as defined in § 55-1-104, lawnmowers or garden tractors, recreational
vehicles or off-road vehicles and vehicles over ten thousand (10,000) pounds
gross vehicle weight;
(4) "Substantially impair" means to render a motor vehicle unreliable or unsafe
for normal operation or to reduce its resale market value below the average
resale value for comparable motor vehicles; and
(5) "Term of protection" means the term of applicable express warranties or the
period of one (1) year following the date of original delivery of the motor
vehicle to a consumer, whichever comes first; or, in the case of a replacement
vehicle provided by a manufacturer to a consumer under this part, one (1) year
from the date of delivery to the consumer of the replacement vehicle.
History
[Acts 1986, ch. 857, § 1.]
55-24-202. Nonconforming vehicles - Reports - Repairs.
If a new motor vehicle does not conform to all applicable express warranties and
the consumer reports the nonconformity, defect or condition to the manufacturer,
its agent or its authorized dealer during the term of protection, the
manufacturer, its agent or its authorized dealer shall correct the
nonconformity, defect or condition at no charge to the consumer, notwithstanding
the fact that such repairs are made after the expiration of such term. Any
corrections or attempted corrections undertaken by an authorized dealer under
the provisions of this section shall be treated as warranty work and billed by
the dealer to the manufacturer in the same manner as other work under warranty
is billed.
History
[Acts 1986, ch. 857, § 2.]
55-24-203. Replacement or repair of vehicles - Refunds - Refinancing agreements
- Defenses.
(a) The manufacturer must replace the motor vehicle with a comparable motor
vehicle or accept return of the vehicle from the consumer and refund to the
consumer the full purchase price if:
(1) The nonconformity, defect or condition substantially impairs the motor
vehicle; and
(2) The manufacturer, its agent or authorized dealer is unable to conform the
motor vehicle to any applicable express warranty after a reasonable number of
attempts.
(3) "Full purchase price" means the actual cost paid by the consumer, including
all collateral charges, less a reasonable allowance for use; and
(4) (A) "Reasonable allowance for use" means that amount directly attributable
to use by a consumer prior to such consumer's first report of the nonconformity
to the manufacturer, agent or dealer and during any subsequent period when the
vehicle is not out of service by reason of repair, plus a reasonable amount for
any damage not attributable to normal wear.
(B) A reasonable allowance for use shall not exceed one half (1/2) of the amount
allowed per mile by the internal revenue service, as provided by regulation,
revenue procedure or revenue ruling promulgated pursuant to § 162 of the
Internal Revenue Code, for use of a personal vehicle for business purposes, plus
an amount to account for any loss to the fair market value of the vehicle
resulting from damage beyond normal wear and tear, unless the damage resulted
from nonconformity to an express warranty.
(c) Refunds shall be made to the consumer, and lienholder, if any, as their
interests appear. The provisions of this section shall not affect the interests
of a lienholder; unless the lienholder consents to the replacement of the lien
with a corresponding lien on the vehicle accepted by the consumer in exchange
for the vehicle having a nonconformity, the lienholder shall be paid in full the
amount due on the lien, including interest and other charges, before an exchange
of automobiles or a refund to the consumer is made.
(d) In instances where a vehicle which was financed by the manufacturer or its
subsidiary or agent is replaced under the provisions of this section, the
manufacturer, subsidiary or agent shall not require the consumer to enter into
any refinancing agreement which would create any financial obligations upon such
consumer beyond those imposed by the original financing agreement.
(e) It shall be an affirmative defense to any claim under this part:
(1) That an alleged nonconformity does not substantially impair a motor vehicle;
or
(2) That a nonconformity is the result of abuse, neglect or unauthorized
modifications or alterations of a motor vehicle by a consumer.
History
[Acts 1986, ch. 857, § 3.]
55-24-204. Leased vehicles - Refunds.
(a) In the case of a leased vehicle, refunds will be made to the lessor and
lessee as follows: The lessee will receive the lessee cost and the lessor will
receive the lease price less the aggregate deposit and rental payments
previously paid to the lessor for the leased vehicle.
(b) For purposes of this section:
(1) "Lease price" means the aggregate of:
(A) Lessor's actual purchase cost;
(B) Freight, if applicable;
(C) Accessories, if applicable;
(D) Any fee paid to another to obtain the lease; and
(E) An amount equal to five percent (5%) of subdivision (b)(1);
(2) "Lessee cost" means the aggregate deposit and rental payments previously
paid to the lessor for the leased vehicle less service fees; and
(3) "Service fees" means the portion of a lease payment attributable to:
(A) An amount for earned interest calculated on the rental payments previously
paid to the lessor for the leased vehicle at an annual rate equal to two (2)
points above the prime rate in effect on the date of the execution of the lease;
and
(B) Any insurance or other costs expended by the lessor for the benefit of the
lessee.
History
[Acts 1986, ch. 857, § 4.]
55-24-205. Presumptions - Term of protection - Notice to manufacturer.
(a) It shall be presumed that a reasonable number of attempts have been
undertaken to conform a motor vehicle to the applicable express warranties, if:
(1) The same nonconformity has been subject to repair four (4) or more times by
the manufacturer or its agents or authorized dealers, but such nonconformity
continues to exist; or
(2) The vehicle is out of service by reason of repair for a cumulative total of
thirty (30) or more calendar days during the term of protection.
(b) The term of protection and such thirty-day period shall be extended by any
period of time during which repair services are not available to the consumer
because of a war, invasion, strike or fire, flood or other natural disaster.
(c) It shall be the responsibility of the consumer, or the representative of the
consumer, prior to proceeding under the provisions of § 55-24-203, to give
written notification by certified mail directly to the manufacturer of the need
for the correction or repair of the nonconformity. If the address of the
manufacturer is not readily available to the consumer in the owner's manual or
manufacturer's warranty received by the consumer at the time of purchase of the
motor vehicle, such written notification shall be mailed to an authorized
dealer. The authorized dealer shall upon receipt forward such notification to
the manufacturer. If, at the time such notice is given, either of the conditions
set forth in subsection (a) already exists, the manufacturer shall be given an
additional opportunity after receipt of the notification, not to exceed ten (10)
days, to correct or repair the nonconformity.
History
[Acts 1986, ch. 857, § 5.]
55-24-206. Informal dispute settlement procedure.
(a) If a manufacturer has established or participates in an informal dispute
settlement procedure which complies with the provisions of Title 16, Code of
Federal Regulations, Part 703, as those provisions read on November 3, 1983, and
of this part, and causes the consumer to be notified of the procedure, the
provisions of § 55-24-203 concerning refunds or replacement shall not apply to
any consumer who has not first resorted to such procedure. The attorney general
and reporter shall, upon application, issue a determination whether an informal
dispute resolution mechanism qualifies under this section.
(b) (1) The informal dispute settlement panel shall determine whether the motor
vehicle does or does not conform to all applicable express warranties.
(2) If the motor vehicle does not conform to all applicable express warranties,
the informal dispute settlement panel shall then determine whether the
nonconformity substantially impairs the motor vehicle.
(3) If the nonconformity does substantially impair the motor vehicle, the
informal dispute settlement panel shall then determine, in accordance with this
part, whether a reasonable number of attempts have been made to correct the
nonconformity.
(4) If a reasonable number of attempts have been made to correct the
nonconformity, the informal dispute settlement panel shall determine whether the
manufacturer has been given an opportunity to repair the motor vehicle as
provided in § 55-24-202.
(5) If the manufacturer has been given an opportunity to repair the motor
vehicle as provided in § 55-24-202, the panel shall find that the consumer is
entitled to refund or replacement as provided in § 55-24-203(a).
(6) The informal dispute settlement panel shall determine the amount of
collateral charges, where appropriate.
History
[Acts 1986, ch. 857, § 6.]
55-24-207. Statute of limitations.
(a) Any action brought under this part shall be commenced within six (6) months
following:
(1) Expiration of the express warranty term; or
(2) One (1) year following the date of original delivery of the motor vehicle to
a consumer, whichever is the later date.
(b) The statute of limitations shall be tolled for the period beginning on the
date when the consumer submits a dispute to an informal dispute settlement
procedure as provided in § 55-24-206 and ending on the date of its decision or
the date before which the manufacturer, its agent or its authorized dealer is
required by the decision to fulfill its terms, whichever comes later.
History
[Acts 1986, ch. 857, § 7.]
55-24-208. Recovery of costs and expenses - Attorneys' fees.
If a consumer finally prevails in any action brought under this part, such
consumer may be allowed by the court to recover as part of the judgment a sum
equal to the aggregate amount of costs and expenses, including attorneys' fees
based on actual time expended, determined by the court to have been reasonably
incurred by the plaintiff for or in connection with the commencement and
prosecution of such action.
History
[Acts 1986, ch. 857, § 8.]
55-24-209. Copy of repair order to consumer.
A manufacturer, its agent or authorized dealer shall provide to the consumer,
each time the consumer's vehicle is returned from being serviced or repaired, a
copy of the repair order indicating all work performed on the vehicle,
including, but not limited to, parts and labor provided without cost or at
reduced cost because of shop or manufacturer's warranty, the date the vehicle
was submitted for repair, the date it was returned to the consumer, and the
odometer reading.
History
[Acts 1986, ch. 857, § 9.]
55-24-210. Election of remedies.
(a) Nothing in this part shall in any way limit the rights or remedies which are
otherwise available to a consumer under any other law.
(b) In no event shall a consumer who has resorted to an informal dispute
settlement procedure be precluded from seeking the rights or remedies available
by law. However, if the consumer elects to pursue any other remedy in state or
federal court, the remedy available under this part shall not be available
insofar as it would result in recovery in excess of the recovery authorized by §
55-24-203 without proof of fault resulting in damages in excess of such
recovery.
(c) Any agreement entered into by a consumer for, or in connection with, the
purchase or lease of a new motor vehicle which waives, limits or disclaims the
rights set forth in this part shall be void as contrary to public policy. These
rights shall inure to a subsequent transferee of such motor vehicle.
History
[Acts 1986, ch. 857, § 10.]
55-24-211. Commencing actions against sellers or lessors.
No action shall be commenced or maintained under the provisions of this part
against the seller or lessor of a motor vehicle unless the seller or lessor is
also the manufacturer, or unless the manufacturer of the motor vehicle is not
subject to service of process in the state of Tennessee, or service cannot be
secured by the long-arm statutes of Tennessee, or unless the manufacturer has
been judicially declared insolvent.
History
[Acts 1986, ch. 857, § 12.]
55-24-212. Manufacturer's warranty - Disclosure to purchaser.
Any business entity which purchases a fleet of new motor vehicles, titles such
motor vehicles in the business entity's name and sells such vehicles to an
individual purchaser shall disclose in writing any remaining manufacturer's
warranty on such motor vehicles to such purchaser.
History
[Acts 1994, ch. 672, § 1.]
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