Tennessee Lemon Law Firms and the Tennessee lemon law code.

Tennessee Code, 55-24-201 to 55-24-212

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.

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.

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.

(b) For purposes of this section:

(1) "Collateral charges" means manufacturer-installed or agent-installed items or service charges, credit life and disability insurance charges, sales taxes, title charges, license fees, registration fees, any similar governmental charges and other reasonable expenses incurred for the purchase of the motor vehicle;

(2) "Comparable motor vehicle" means a new motor vehicle of comparable worth to the same make and model with all options and accessories, with appropriate adjustments being allowed for any model year differences;

(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 lien holder, if any, as their interests appear. The provisions of this section shall not affect the interests of a lien holder; unless the lien holder 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 lien holder 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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

Primarily, the Lemon Laws stipulate that if you purchase (and in some states, lease) a new or used vehicle or other vehicle covered by a manufacturer's warranty that does not work consistently, and the original maker cannot recondition it in spite of recurring tries (inside a defined time that differs from state to state), or if the car is not usable for a limited time (often 30 days) because of its faults, you are entitled to a broad range of dismantles, inclusive of:

1. Money restitution
2. A payback of the cost
3. A brand new car
Furthermore, nearly all the Lemon Laws (as well as the Federal Warranty Law) contain a fee changing mechanism which stipulates that if you win your suit, the original maker or car dealership that sold you your lemon is forced to repay attorneys' fees.


Lemon Law Statutes
State Lemon Law Regulations
Each of the 50 states has a unique Lemon Law statute. Even though the attributes of each state's statute vary, the average state Lemon Law statute affords help for consumers with a unsound vehicle purchased with a warranty if:

1. The dealer or original maker can't reliably fix a specific failing in the item after a sensible number of repair attempts (usually at least 3);
2. The motor vehicle cannot be used for at least 30 days due to problems in the motor vehicle; or
3. The car dealership or original maker just can not repair a fault that is a major safety hazard.

Typically, a faulty car is a car with a defect or affliction that substantially cripples its use, value, or safety to the consumer and does not maintain the standard of the warranty. Often times, the time period during which the Lemon Laws are applicable are rather short; the problems and consequential repair attempts (or out-of-service period) usually must happen during the first two-years or 24,000 miles of consumer ownership of the car. However, a number of states have even shorter time periods. Additionally, almost all states have notice and trigger prerequisites, such as asking the consumer to send off registered mail notice to the manufacturer of the shortcomings and presenting the dealer a chance to repair the vehicle. Moreover, several states expect that Lemon Law lawsuits be settled through an arbitration procedure.

Generally, state Lemon Law statues also apply to leased cars and preowned vehicles bought whilst under the manufacturer's written warranty. A lot of state Lemon Laws also apply to automobiles other than passenger vehicles. depending upon the buyer's home state, or the state where the consumer bought the automobile, Lemon Laws may apply to:

-RV's
-Motorcycles
-Pleasure Craft
-Other consumer products (like electronics)
There are a number of effective remedies possible under the Lemon Laws. US Statesently, if the manufacturer just can't fix the car, the consumer may either require the manufacturer to replace the car, or make the manufacturing business to reposess the car and payback the purchase price plus accompanying costs, like all invoices, towing fees, repair costs, associated transportation charges and other costs incurred by the consumer as a result of the troubles in the car. Another important resolution possible under most Lemon Laws is laywers' expenses. In many states, if you win in a Lemon Law lawsuit, you won't have to pay any laywers' expenses-the motor vehicle maker that sold you your lemon is obligated to pay litigation fees.

The defendant car original equipment manufacturer can apply various defenses to a Lemon Law claim. The common statute affords that the maker is not liable if it can affirm that the defects in question persisted due to misuse, negligence, or the modification or tampering of a auto by somone other than the maker, an agent, or an authorized repair facility. In other words, if the consumer maltreats his or her own automobile, or the troubles were the fault of changing or changes carried out by an unauthorized party, the maker could not be guilty.


Federal Lemon Law Statutes
The Magnuson Moss Act
The Magnuson-Moss Warranty Act is the federal law that regulates consumer merchandise warranties. Sanctioned by Congress in 1975, the Magnuson Moss Act requires manufacturing business and marketers of consumer products to provide customers explanatory facts about warranty coverage claims. Additionally, it determines both the rights of customers and the responsibilities of warrantors under manufacturer warranties.

Although the Magnuson Moss Act doesn't call for an car manufacturer to provide customers with a warranty, if a warranty is supplied, the Magnuson Moss Act extends numerous protections for the consumer. The Magnuson Moss Act makes it more easy for buyers to sue for breach of warranty by making breach of warranty a violation of federal law, and by allowing for public consumers to recoup court costs and sensible laywers' fees.

The Magnuson Moss Act is frequently beneficial in a lemon situation where, for some reason, a state Lemon Law claim is not applicable or otherwise disadvantageous. For instance, contrary to the rather short period of time offered to consumers inside almost all Lemon Laws, you may file a claim for breach of warranty after the warranty period has passed if the troubles happened during the warranty time period. Moreover, although some Lemon Laws restrict their coverage benefits to a small group of cars, the Magnuson Moss Act is relevant to virtually all consumer items. The Magnuson Moss Act might also be applicable if you bought or leased a used automobile without a manufacturing business warranty, or if the automobile is covered by a service contract or other variety of extended warranty.


The Uniform Commercial Code
The Uniform Commercial Code (referred to as "UCC") has been ratified in all states. It is the foundational authority of law governing product contracts, including vehicles and other items. The UCC affords a legal avenue for consumers with lemon problems.

UCC code says that the consumer of a good is entitled to return products which fail in any aspect to the consumer agreement. So, if your brand new automobile doesn't work as established by the original producer (your written warranty is part of your consumer warranty), you can have a claim citing the UCC in addition to whatever other claims you might have.

The time for bringing back a vehicle with the UCC is not limitless. If you observe a failing in your motor vehicle within a sensible posession time period, you may return the vehicle. Unfortunately, new cars are often mechanically enigmatic and you might not understand whether your car conforms to the contract until long after you acquire the car and defects begin to arise. In essence, if After this posession time period you don't refuse the car, you will be said to have accepted it and may have no claim through the UCC.

The length of the review period is not delineated in the statute. Courts determine how long the fair review period is based on the buyer's knowledge and personal experience, the buyer's difficulty in seeing the deficiency, and the buyer's opportunity to detect the failing.

In spite of this limit, the UCC says that in certain cases where a buyer is pronounced to have accepted goods (i.e. the fair review period has expired), a buyer can still repeal his acceptation of those goods where the non-conformity frequently cripples the economic value of the goods to him. Those examples include cases in which it proves burdensome to find the nonconformity or the buyer was assured that the non-conformity would be repaired. In different words, the local court will pardon the buyer from not refusing the goods where the buyer could not have sensibly done so, or where the manufacturer promised the buyer that the problems would be repaired.
Once a auto excessively gives out and you have to keep bringing it back to the dealer for repair under the written warranty, the car lemon law may be your next course. The defect should be substantive in which it intereferes with your driving the product or your safety. A product stalling for no reason would be a substantive defect. This is exactly the type of defect that could stymie your driving and your safety. Under the auto lemon law you are not obliged to demonstrate why the car is stalling, you merely have to show clearly that it is stalling. Thus you need to look into the lemon law in these three cases: the car keeps failing inside the warranty time period, the car is a safety hazard, the car dealership is incapable to restore the car when it is guaranteed.

If you have a vehicle which is a lemon you can immediately write to the original producer and ask for a replacement vehicle. If this request is not satisfactory to the original producer, you could move into an arbitration process. A few manufacturing business* incorporate their own arbitration process. Other manufacturing business* use outside arbitration program such as Autoline by the BBB. The proposal of the arbitrators is binding on the original producer but not on the buyer. If unsatisfied with the proposition, the buyer can take the original producer to court.

Virtually all laws provide that the purchaser ought to be restored back to the fiscal situation they were in before they purchased the car, less the measure that the purchaser benefited from by using the car. To get the restitution amount numerous factors are considered such as was it a sale or a lease, the purchase price, taxes and license, and mileage etc.
Some virtually new pre-owned motor vehicles may qualify under normal lemon laws. For example, a pre-owned car may fall under regular lemon laws if it is less than a year old and has got fewer than 12,000 miles on the odometer. States which do have a pre-owned car lemon law may be more cooperative with the age and amount of mileage. Still, the car must be sold by a dealer that supplies a written warranty. Personal sales are not regulated, nor are motor vehicles sold under a stated original cost. There might be other restrictions to a used car lemon law such as the functions in which the car is driven or the categorization of car. Vintage automobiles, are usually excluded from pre-owned car lemon laws. Used car lemon laws usually cover a much shorter time period than brand new car regulations. They usually range from 30 to 90 days, based on your used car's mileage.
When choosing a lawyer for your lemon case, make sure that your lawyer is knowledgeable about the laws that apply to your state. Also enquire about the pricing structure. Many lemon law lawyers take a relatively minor retainer to manage a lemon law claim, and subsequently, the lawyer's fees are charged to the manufacturer. Basically, lemon law claims are usually very inexpensive to customers. The reimbursement of attorney invoices differs from state to state. About one-half of the states let you to recoup your Lawyer fees if you win. The attorney's fee is based upon actual time logged instead of being tied to any other portion of the recuperation. In a few States, you have to pay the manufacturing business* lawyer's charges if you lose.

Consumers ought to register their complaints in writing and save a copy. In any written communication, always outline how problematic it is to return the motor vehicle to the dealership for corrections and that the dependability that the buyer thought He was buying has been non-existent. Any written communication with a car dealership or manufacturer ought to be sent using certified mail service. In most lawsuits the manufacturing business* claim that they have not had the required number of endeavors to remedy the condition. They count on the reality that the buyer does not file repair orders for each instance they have driven the motor vehicle into the repair facility. They also depend on the fact that the repair orders have different parts fixed each period showing that they have not repaired the same defect. Consumers ought to reply by expecting that sellers always grant them a warranty repair order. Consumers should also indicate that these undocumented visits are attempts.

Make sure to be mindful of your rights under the lemon laws. Upon purchase, immediately review your owner's booklet and warranty references thoroughly, and the info on lemon law rights that you ought to get when you acquire your automobile. Don't bet on your car dealership to teach you what problems are covered by warranty. If your car dealership states that a defect is not covered and you believe that he is misleading you, be genteel but confident. Don't be scared to go over the segment of the warranty that applies, or to call the manufacturer for verification applying the contact info included inside your owner's booklet. You should not have to pay for work connected to lemon law complaints. It's also important to notify the manufacturer of a complaint straightaway. If you think that your motor vehicle has a problem what just can not be fixed, look into your lemon law rights to see when you are able to file a lemon law complaint.

Lemon Law Tips:

1. Take your car in early - as soon as something appears wrong.
2. Hold onto repair orders - Always obtain a work order when you take the vehicle for repairs, and always obtain a completed repair order when work is completed. Be sure the work order reflects your own thoughts and comments regarding your complaints. If the technician summarizes or changes your complaint too much, have that technician add your corrected comments. Sign and receive a copy of the repair Order before leaving.
3. Be consistent in your complaints. Lemon Laws generally require that a manufacturer's authorized repair facility be provided with a reasonable number of opportunities to repair the same problem(s). Therefore, be as consistent as possible on each repeated repair attempt in describing the problem(s) you are having. This will establish that the problem is the same recurring problem, and will make any potential lemon law claim easier to establish and prove.

4. Look for TSBs: Technical Service Bulletins are issued by manufacturers regarding common defects or repairs in certain automobile models. Your dealer will not seek to tell you about TSBs unless you ask. Ask the dealer to make note of your TSB request on the repair order, even if your dealer tells you that none exist for your problem.
5. Watch for bad advice - Dealers and manufacturers personnel, without intending to, frequently practice law by giving you their version of lemon laws. Typically it is wrong and may be detrimental to your case. It doesn't matter whether the reason for this misinformation is unintentional or not. The effect is similar. So check any advice given by the dealer or manufacturer before making any decision that may harm your case.

6. Beware of arbitration - Manufacturers frequently recommend arbitration or even imply that it is a mandatory prerequisite to resolving your problem. Arbitration is neither desirable nor mandatory! And it is absolutely not a prerequisite for making a lemon law demand!
Leading Misconceptions regarding the Lemon Laws

If my case does not qualify for the lemon law there is nothing I can do.
Attorneys regularly take cases that do not meet the lemon law criteria. All purchasers of defective products have a legal right to compensation. They frequently take cases which do meet the mileage or repair criteria of the lemon law, bring them in court, and secure compensation or other relief for the buyer.

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