The Lemon Laws

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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 theduration of an express warranty applicable to such motor vehicle, andany other person entitled by the terms of such warranty to enforce theobligations of the warranty. "Consumer" does not include anygovernmental entity or any business or commercial entity whichregisters three (3) or more vehicles;

2. "Lessee" means any consumer wholeases a motor vehicle pursuant to a written lease agreement by which amanufacturer^s warranty was issued as a condition of sale or whichprovides that the lessee is responsible for repairs to such motorvehicle;

3. "Motor vehicle" means a motorvehicle as defined in § 55-1-103, which is sold and subject to theregistration and certificate of title provisions in chapters 1-6 ofthis title in the state of Tennessee, and classified as a Class Cvehicle according to § 55-4-111. For the purposes of this part, "motorvehicle" 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 tenthousand (10,000) pounds gross vehicle weight;

4. "Substantially impair" means torender a motor vehicle unreliable or unsafe for normal operation or toreduce its resale market value below the average resale value forcomparable motor vehicles; and

5. "Term of protection" means theterm of applicable express warranties or the period of one (1) yearfollowing the date of original delivery of the motor vehicle to aconsumer, whichever comes first; or, in the case of a replacementvehicle provided by a manufacturer to a consumer under this part, one(1) year from the date of delivery to the consumer of the replacementvehicle. History [Acts 1986, ch. 857, § 1.] 55-24-202. Nonconforming vehicles - Reports - Repairs. If a new motor vehicle does not conform to allapplicable express warranties and the consumer reports thenonconformity, defect or condition to the manufacturer, its agent orits 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 thefact that such repairs are made after the expiration of such term. Anycorrections or attempted corrections undertaken by an authorized dealerunder the provisions of this section shall be treated as warranty workand billed by the dealer to the manufacturer in the same manner asother work under warranty is billed. History [Acts 1986, ch. 857, § 2.] 55-24-203. Replacement or repair of vehicles - Refunds - Refinancing agreements - Defenses. 1. The manufacturer must replace the motor vehicle with acomparable motor vehicle or accept return of the vehicle from theconsumer 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 vehicleto any applicable express warranty after a reasonable number ofattempts. 3. "Full purchaseprice" means the actual cost paid by the consumer, including allcollateral charges, less a reasonable allowance for use; and 4. (A) "Reasonableallowance for use" means that amount directly attributable to use by aconsumer prior to such consumer^s first report of the nonconformity tothe manufacturer, agent or dealer and during any subsequent period whenthe vehicle is not out of service by reason of repair, plus areasonable amount for any damage not attributable to normal wear. 2. A reasonable allowance for use shall not exceed onehalf (1/2) of the amount allowed per mile by the internal revenueservice, as provided by regulation, revenue procedure or revenue rulingpromulgated pursuant to § 162 of the Internal Revenue Code, for use ofa personal vehicle for business purposes, plus an amount to account forany loss to the fair market value of the vehicle resulting from damagebeyond normal wear and tear, unless the damage resulted fromnonconformity to an express warranty. 3. Refunds shall be made to the consumer, and lienholder,if any, as their interests appear. The provisions of this section shallnot affect the interests of a lienholder; unless the lienholderconsents to the replacement of the lien with a corresponding lien onthe vehicle accepted by the consumer in exchange for the vehicle havinga nonconformity, the lienholder shall be paid in full the amount due onthe lien, including interest and other charges, before an exchange ofautomobiles or a refund to the consumer is made. 4. In instances where a vehicle which was financed by themanufacturer or its subsidiary or agent is replaced under theprovisions of this section, the manufacturer, subsidiary or agent shallnot require the consumer to enter into any refinancing agreement whichwould create any financial obligations upon such consumer beyond thoseimposed by the original financing agreement. 5. It shall be an affirmative defense to any claim under this part: 1. That an allegednonconformity does not substantially impair a motor vehicle; or 2. That anonconformity is the result of abuse, neglect or unauthorizedmodifications or alterations of a motor vehicle by a consumer. History [Acts 1986, ch. 857, § 3.] 55-24-204. Leased vehicles - Refunds. 1. In the case of a leased vehicle, refunds will be madeto the lessor and lessee as follows: The lessee will receive the lesseecost and the lessor will receive the lease price less the aggregatedeposit and rental payments previously paid to the lessor for theleased vehicle. 2. For purposes of this section: 1. "Lease price" means the aggregate of: 1. Lessor^s actual purchase cost; 2. Freight, if applicable; 3. Accessories, if applicable; 4. Any fee paid to another to obtain the lease; and 5. An amount equal to five percent (5%) of subdivision (b)(1); 2. "Lessee cost" meansthe aggregate deposit and rental payments previously paid to the lessorfor the leased vehicle less service fees; and 3. "Service fees" means the portion of a lease payment attributable to: 1. An amount for earned interest calculated on the rental paymentspreviously paid to the lessor for the leased vehicle at an annual rateequal to two (2) points above the prime rate in effect on the date ofthe execution of the lease; and 2. Any insurance or other costs expended by the lessor for the benefitof the lessee. History [Acts 1986, ch. 857, § 4.] 55-24-205. Presumptions - Term of protection - Notice to manufacturer. 1. It shall be presumed that a reasonable number ofattempts have been undertaken to conform a motor vehicle to theapplicable express warranties, if: 1. The samenonconformity has been subject to repair four (4) or more times by themanufacturer or its agents or authorized dealers, but suchnonconformity continues to exist; or 2. The vehicle is outof service by reason of repair for a cumulative total of thirty (30) ormore calendar days during the term of protection. 2. The term of protection and such thirty-day period shallbe extended by any period of time during which repair services are notavailable to the consumer because of a war, invasion, strike or fire,flood or other natural disaster. 3. It shall be the responsibility of the consumer, or therepresentative of the consumer, prior to proceeding under theprovisions of § 55-24-203, to give written notification by certifiedmail directly to the manufacturer of the need for the correction orrepair of the nonconformity. If the address of the manufacturer is notreadily available to the consumer in the owner^s manual ormanufacturer^s warranty received by the consumer at the time ofpurchase of the motor vehicle, such written notification shall bemailed to an authorized dealer. The authorized dealer shall uponreceipt forward such notification to the manufacturer. If, at the timesuch notice is given, either of the conditions set forth in subsection(a) already exists, the manufacturer shall be given an additionalopportunity 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. 1. If a manufacturer has established or participates in aninformal dispute settlement procedure which complies with theprovisions of Title 16, Code of Federal Regulations, Part 703, as thoseprovisions read on November 3, 1983, and of this part, and causes theconsumer to be notified of the procedure, the provisions of § 55-24-203concerning refunds or replacement shall not apply to any consumer whohas not first resorted to such procedure. The attorney general andreporter shall, upon application, issue a determination whether aninformal dispute resolution mechanism qualifies under this section. 2. 1. The informaldispute settlement panel shall determine whether the motor vehicle doesor does not conform to all applicable express warranties. 2. If the motorvehicle does not conform to all applicable express warranties, theinformal dispute settlement panel shall then determine whether thenonconformity substantially impairs the motor vehicle. 3. If thenonconformity does substantially impair the motor vehicle, the informaldispute settlement panel shall then determine, in accordance with thispart, whether a reasonable number of attempts have been made to correctthe nonconformity. 4. If a reasonablenumber of attempts have been made to correct the nonconformity, theinformal dispute settlement panel shall determine whether themanufacturer has been given an opportunity to repair the motor vehicleas provided in § 55-24-202. 5. If the manufacturerhas been given an opportunity to repair the motor vehicle as providedin § 55-24-202, the panel shall find that the consumer is entitled torefund or replacement as provided in § 55-24-203(a). 6. The informaldispute settlement panel shall determine the amount of collateralcharges, where appropriate. History [Acts 1986, ch. 857, § 6.] 55-24-207. Statute of limitations. 1. 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) yearfollowing the date of original delivery of the motor vehicle to aconsumer, whichever is the later date. 2. The statute of limitations shall be tolled for theperiod beginning on the date when the consumer submits a dispute to aninformal dispute settlement procedure as provided in § 55-24-206 andending on the date of its decision or the date before which themanufacturer, its agent or its authorized dealer is required by thedecision 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 broughtunder this part, such consumer may be allowed by the court to recoveras part of the judgment a sum equal to the aggregate amount of costsand expenses, including attorneys^ fees based on actual time expended,determined by the court to have been reasonably incurred by theplaintiff for or in connection with the commencement and prosecution ofsuch action. History [Acts 1986, ch. 857, § 8.] 55-24-209. Copy of repair order to consumer. A manufacturer, its agent or authorized dealer shallprovide to the consumer, each time the consumer^s vehicle is returnedfrom being serviced or repaired, a copy of the repair order indicatingall work performed on the vehicle, including, but not limited to, partsand labor provided without cost or at reduced cost because of shop ormanufacturer^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. 1. Nothing in this part shall in any way limit the rightsor remedies which are otherwise available to a consumer under any otherlaw. 2. In no event shall a consumer who has resorted to aninformal dispute settlement procedure be precluded from seeking therights or remedies available by law. However, if the consumer elects topursue any other remedy in state or federal court, the remedy availableunder this part shall not be available insofar as it would result inrecovery in excess of the recovery authorized by § 55-24-203 withoutproof of fault resulting in damages in excess of such recovery. 3. Any agreement entered into by a consumer for, or inconnection with, the purchase or lease of a new motor vehicle whichwaives, limits or disclaims the rights set forth in this part shall bevoid as contrary to public policy. These rights shall inure to asubsequent 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 theprovisions of this part against the seller or lessor of a motor vehicleunless the seller or lessor is also the manufacturer, or unless themanufacturer of the motor vehicle is not subject to service of processin the state of Tennessee, or service cannot be secured by the long-armstatutes of Tennessee, or unless the manufacturer has been judiciallydeclared insolvent. History [Acts 1986, ch. 857, § 12.] 55-24-212. Manufacturer^s warranty - Disclosure to purchaser. Any business entity which purchases a fleet of newmotor vehicles, titles such motor vehicles in the business entity^sname and sells such vehicles to an individual purchaser shall disclosein writing any remaining manufacturer^s warranty on such motor vehiclesto such purchaser.