Tennessee Lemon Law
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) (A) "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, or subject to similar registration and certificate of title provisions in another state, and classified as a Class B 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;
(B) "Manufacturer" means any person who manufactures or assembles new or unused motor vehicles or, in the case of motor vehicles not manufactured in the United States, the importer of such motor vehicle; and
(C) "Person" means every natural person, partnership, corporation, association, trust, estate or other legal entity;
(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.
[Acts 1986, ch. 857, § 1; 2003, ch. 22, §§ 1-3.]
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.
[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.
[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.
[Acts 1986, ch. 857, § 4.]
55-24-205. Presumptions - Term of protection - Notice to
Note: Information in this section of FastCoolCars is solely placed and told from resources that I have found
doing research on lemon laws. For exact up to date laws pertaining to your
issue(s) with your vehicle, check with your local and state law makers.
Information contained within is up to date as of 12-10-04.