Tenn. Comp. R. & Regs. 0960-01-.01 - DEFINITIONS
Current through March 20, 2022
For the purposes of these rules and T.C.A. § 55-17-101 et seq. and unless the context requires otherwise:
(1) the term "representative' shall include
regional, zone or district executive sales, service and parts personnel whose
area of responsibility includes Tennessee and whose duties include contacting
motor vehicle dealers or their employees in Tennessee and every other person
employed by a motor vehicle manufacturer or distributor, directly or
indirectly, to call upon or contact motor vehicle dealers or their employees in
Tennessee concerning new motor vehicle sales, advertising, service, parts,
business management, used motor vehicle sales or for any other
purpose.
(2) the term "labor rate"
shall mean the total labor cost including salary and benefits, overhead and
profit attributable to employees of a motor vehicle dealer performing or
assisting in the performance of warranty repairs or servicing.
(3) the term "labor rate per hour" shall mean
the labor rate per hour attributable to employees of a motor vehicle dealer
performing or assisting in the performance of warranty repairs or
servicing.
(4) the term "warranty"
repairs or servicing" shall mean the actual work or service, including
reasonable diagnostic time, performed by a motor vehicle dealer under the terms
of a valid, new car manufacturer's warranty.
(5) the term "retail labor rate" shall mean
the total labor cost including salary and benefits, overhead and profit
attributable to employees of a motor vehicle dealer performing or assisting in
the performance of repairs or servicing of vehicles not covered by a new car
manufacturer's warranty.
(6) the
term "posted retail labor rate" shall mean the "retail labor rate" as defined
in Rule 0690-1.05 (5) which has been filed by a motor vehicle dealer with the
Tennessee Motor Vehicle Commission pursuant to T.C.A.§
55-17-121 (a).
(7) the term "manual" shall mean the standard
rate manual published by the manufacturer of a line-make or trade name of motor
vehicle or any component thereof stating the standard time units required or
allotted to perform specific warranty repairs or servicing.
(8) the term "sales incentive" shall mean a
payment made or other benefit provided by a manufacturer or distributor
pursuant to a program to incentivize the retail sale of a vehicle or vehicles
distributed by the manufacturer or distributor. Without limiting the foregoing,
each of the following is an example of a Sales Incentive:
(1) a payment made or a benefit provided by a
manufacturer or distributor for which a buyer of a vehicle from a dealer
becomes eligible as a result of purchasing a vehicle, whether the payment or
benefit is given to the buyer or to another based on assignment of the right
thereto by the buyer of a vehicle;
(2) a payment made or benefit provided by a
manufacturer or distributor to a dealer because of the dealer's sale of a
vehicle;
(3) a payment made or a
benefit provided by a manufacturer or distributor to a dealer for a dealer's
sale of multiple vehicles to meet a goal or objective of a manufacturer or
distributor's program;
(4) a
payment made or a benefit provided by a manufacturer or distributor to a dealer
for a dealer's sale of a vehicle or sales of vehicles where the amount of
compensation or benefit is determined based on a dealer's sales in comparison
to a goal or goals of a manufacturer or distributor's program; and/or
(5) a payment made or benefit provided by a
manufacturer or distributor to a dealer or the customer on account of the
customer's status as an employee of the manufacturer or distributor, a relative
of an employee of the manufacturer or distributor, a supplier to the
manufacturer or distributor, or as a former customer of the brand, or as a
payment or other benefit given to a buyer who currently owns a competing brand
as an inducement to purchase a vehicle.
Notes
Authority: T.C.A. § 55-17-107.
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