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.

Although it varies from state to state, the Lemon Laws provide that if you purchase (and in many states, lease) a new or pre-owned vehicle or other car with a manufacturer's warranty that struggles to consistently run after repair attempts, and the original producer just can't rebuild it despite consecutive attempts (within a limited time limit that fluctuates from state to state), or if the automobile is in the shop for a defined period (often 30 days) due to its faults, you are eligible to a wide range of maltreats, including:

1. Money damages
2. A compensation of the purchase cost
3. A brand new vehicle
Moreover, nearly all the Lemon Laws (as well as the Federal Warranty Law) contain a fee switching element that states that if you win your case, the original maker or car dealership that sold you your lemon is forced to compensate you for legal bills.


Lemon Law Regulations
State-specific Lemon Law Statutes
Each of the 50 states has its own Lemon Law statute. Even though the protections of each state's statute are different, the standard state Lemon Law statute affords remedy to a consumer with a dilapidated motor vehicle covered by a warranty if:

1. The dealership or original maker just can't properly correct a particular gremlin in the product after a fair number of repair tries (commonly at least three);
2. The vehicle cannot be driven for at least 30 days due to troubles in the vehicle; or
3. The dealership or original maker can't remedy a problem that is a endangering safety risk.

Most of the time, a faulty car is a car with a condition or affliction that often impares its drivability, economic value, or safety to the consumer and does not maintain the standard of the written warranty. Frequently, the period during which the Lemon Laws are applicable are rather short; the defects and resulting repair efforts (or out-of-service period of time) typically will happen during the first two-years or 24,000 miles the owner has the motor vehicle. However, a number of states have even shorter time periods. Furthermore, many states have notification and activation requirements, such as requiring the consumer to send off registered post notice to the manufacturing business of the flaws and giving the car dealership an opportunity to remedy the vehicle. Additionally, numerous states demand that Lemon Law lawsuits be solved through an arbitration proceeding.

Generally, state Lemon Law statues also are applicable to leased automobiles and used cars purchased while under the producers written warranty. A good number of state Lemon Laws also apply to cars other than passenger automobiles. depending on the customer's home state, or the state where the consumer purchased the motor vehicle, Lemon Laws may apply to:

-RV's
-Motorcycles
-Pleasure Craft
-Other consumer commodities (such as electronics)
There are many robust remedies possible under the Lemon Laws. U.S. Statesten times, if the manufacturing business can't fix the car, the consumer can either expect the manufacturing business to replace the automobile, or force the manufacturing business to take back the automobile and repay the purchase price plus incidental costs, such as all fees, towing costs, repair costs, associated travel charges and other costs incurred by the consumer as a consequence of the troubles in the automobile. Another important remedy possible under most Lemon Laws is laywers' fees. In virtually all states, if you win in a Lemon Law lawsuit, you won't have to pay any litigation bills-the motor vehicle manufacturing business that sold you your lemon is expected to pay all of your litigation bills.

The defendant auto original producer can implement several defenses to a Lemon Law claim. The standard regulation extends that the manufacturer is not guilty if it can establish that the faults in dispute came about because of exploitation, neglect, or the modification or alteration of a auto by somone other than the original equipment manufacturer, an agent, or its authorized dealer. In other words, if the consumer abuses his or her own vehicle, or the faults were caused by modifications or adjustments conducted by an unauthorized party, the original equipment manufacturer may not be responsible.


Federal Lemon Law Statutes
The Magnuson Moss Act
The Magnuson-Moss Warranty Act is the federal law that moderates consumer goods warranties. Ratified by Congress in 1975, the Magnuson Moss Act requires makers and marketers of consumer goods to give consumers comprehensive data about warranty coverage. In addition, it affects both the rights of customers and the responsibilities of warrantors under original warranties.

Although the Magnuson Moss Act doesn't call for an motor vehicle maker to supply customers with a warranty, if a warranty is offered, the Magnuson Moss Act provides numerous protections for the consumer. The Magnuson Moss Act makes it easier for buyers to sue for not honoring the warranty by making breach of warranty a violation of federal law, and by allowing for consumers to recover legal costs and fair attorney's fees.

The Magnuson Moss Act is frequently relevant in a lemon case where, for some reason, a state Lemon Law claim is not applicable or furthermore unfit. For example, unlike the relatively short period of time offered to public consumers inside many Lemon Laws, you may register a claim for breach of warranty after the warranty period has expired if the defects came about during the warranty period. Also, although some Lemon Laws restrict their coverage benefits to a small group of vehicles, the Magnuson Moss Act is relevant to nearly all consumer products. The Magnuson Moss Act may also be applicable if you bought or leased a expended vehicle without a manufacturer's warranty, or if the vehicle is covered by a service contract or other type of extended warranty.


The Uniform Commercial Code
The Uniform Commercial Code (referred to as "UCC") has been enacted in every U.S. state. It is the principal foundation of law governing warranties on consumer goods, including automobiles and other items. The UCC provides an alternative legal route for customers with lemon troubles.

UCC code provides that the consumer of a product is entitled to return products which fail in any sense to the consumer agreement. Thus, if your new motor vehicle does not work as established by the original producer (your manufacturer warranty is a portion of your warranty), you may have a claim referencing the UCC in addition to any other claims you might have.

The time for taking back a automobile with the UCC is not limitless. If you discover a gremlin in your automobile within a fair review period, you may refuse the vehicle. Unfortunately, new motor vehicles are oftentimes mechanically complicated and you may not acknowledge if your car conforms to the warranty till long after you purchase the car and problems begin to develop. Essentially, if After this review period you don't reject the car, you will be alleged to have approved of it and might have no claim through the UCC.

The length of the inspection time period is not defined in the statute. Local courts decide how long the reasonable review period is based on the purchaser's proficiency and experience, the purchaser's difficulty in coming upon the fault, and the purchaser's chance to observe the failing.

In spite of this limitation, the UCC stipulates that in certain examples where a consumer is deemed to have approved of goods (i.e. the reasonable review time has elapsed), a consumer can still repeal his favorable reception of those products where the non-conformity often degrades the value of the products to him. Those examples include suits where it proves arduous to observe the nonconformity or the consumer was promised that the non-conformity would be remedied. In different words, the court will exempt the consumer from not refusing the products where the consumer could not have sensibly done so, or where the manufacturer promised the buyer that the problems would be repaired.
When a automobile excessively gives out and you have to keep bringing it back to the car dealership for repair under the warranty, the vehicle lemon law can be your next course of action. The gremlin must be significant in which it impedes your driving the vehicle or your safety. A vehicle stalling for no reason would be a significant gremlin. This is precisely the type of condition that could diminiah your driving and your safety. Under the auto lemon law you are not obliged to demonstrate why the auto is stalling, you only have to prove that it is stalling. Essentially you need to check into the lemon law in these three instances: the auto keeps breaking inside the warranty period, the auto is a safety risk, the dealer is incapable to rebuild the auto when it is warranted.

If you own a car which is a lemon you can immediately write to the original maker and ask for a replacement car. If this demand is not acceptable to the original maker, you may start into an arbitration process. A few manufacturers use their own arbitration program. Other manufacturers utilise outside arbitration program including Autoline by the BBB. The recommendation of the arbitrators is binding on the original maker but not on the purchaser. If unsatisfied with the opinion, the purchaser can take the original maker to court.

Virtually all regulations specify that the purchaser should be returned back to the fiscal position they were in prior to purchasing the automobile, less the measure that the purchaser gained from by using the automobile. To get the payback amount many factors are considered such as was it a sale or a lease, the purchase price, taxes and license, and mileage etc.
Some virtually new used vehicles might qualify under normal lemon laws. For example, a pre-owned auto may fall under regular lemon laws if it is less than 1 year old and has got fewer than 12,000 miles on the odometer. States which do have a used auto lemon law may be more accommodative with the age and measure of mileage. Still, the car has to be sold by a car dealership that supplies a warranty. Private party sales aren't included, nor are vehicles sold under a declared purchase price. There may be other restrictions to a used car lemon law such as the purposes in which the automobile is used or the categorisation of automobile. Classic automobiles, are ordinarily excluded from used car lemon laws. Used car lemon laws commonly cover a much shorter period of time than brand new car laws. They often range from 30 to 90 days, based on your used car's mileage.
When picking out a lawyer for your lemon case, make sure that your lawyer is knowledgeable about the regulations that are applicable to your state. Also enquire about the pricing structure. Many lemon law lawyers take a generally humble retainer to handle a lemon law claim, and thereafter, the attorney's bills are sent to the original equipment manufacturer. Essentially, lemon law claims are oftentimes very affordable to public consumers. The reimbursement of attorney invoices varies from state to state. About half of the states let you to recoup your Attorney fees if you win. The attorney's fee is based upon actual time logged rather than being connected to any share of the recovery. In some States, you have to pay the manufacturer's lawyer's invoices if you lose.

Consumers should record their concerns in writing and hold a copy. In every written communication, always delineate how problematic it is to bring the car to the dealer for work and that the dependability that the buyer thought He was acquiring has been non-existent. Any written communication with a dealership or original equipment manufacturer should be sent using certified postal service. In many instances the manufacturers claim that they haven't had the necessary number of attempts to remedy the defect. They depend on the reality that the buyer does not retain repair orders for each occurance they have driven the motor vehicle into the repair facility. They also count on the possibility that the repair orders have seperate things repaired every occurance establishing that they have not fixed the same defect. Consumers should reply by demanding that authorized dealerships always give them a warranty repair ticket. Consumers must also argue that these undocumented visits are tries.

Make sure to be knowledgeable of your lemon law rights. Upon purchase, immediately read your owner's binder and warranty references entirely, as well as the data on lemon law rights that you should get when you purchase your car. Don't depend on your dealership to make clear which troubles are covered by warranty. If your dealership states that a defect is not covered and you think that she is misleading you, be polite but confident. Don't be afraid to bring out the section of the warranty that is relevant, or to call the manufacturing business for substantiation utilizing the contact info included within your owner's binder. You shouldn't be obligated pay for repairs connected to lemon law complaints. It's also crucial to give notice the manufacturing business of a complaint immediately. If you think that your vehicle has a problem that just can not be remedied, check 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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