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

Tenn. Comp. R. & Regs. 0960-01-.01

Original rule certified May 31, 1974. Repealed and refiled October 23, 1978; effective January 29, 1979. Amendment filed June 22, 2011; effective September 20, 2011.

Authority: T.C.A. § 55-17-107.