Rules & Regulations of the State of Tennessee Title 0960 - Motor Vehicle Commission
Title 0960 - Motor Vehicle Commission in the Tennessee Administrative Code outlines the rules and regulations governing the Tennessee Motor Vehicle Commission (TMC). The Tennessee Motor Vehicle Commission is a regulatory body that oversees various aspects of the motor vehicle industry in the state, ensuring that it operates fairly, transparently, and in compliance with state laws. It regulates motor vehicle dealerships, sales practices, and other related activities to protect consumers and maintain the integrity of the motor vehicle market.
Here's a detailed breakdown of the rules and regulations:
1. General Overview of the Motor Vehicle Commission (TMC)
The Tennessee Motor Vehicle Commission is responsible for ensuring that the motor vehicle sales and leasing industry in the state operates under fair and transparent conditions. The Commission’s core responsibilities include:
Licensing of motor vehicle dealers, manufacturers, and salespeople.
Regulating vehicle sales practices, including advertising, trade-ins, and contracts.
Investigating complaints and enforcing rules against improper practices.
Promoting consumer protection in motor vehicle transactions.
The Motor Vehicle Commission administers Title 0960, which includes the rules that govern the business practices of motor vehicle dealerships, wholesalers, distributors, manufacturers, and sales representatives in Tennessee.
2. Licensing Requirements
a) Motor Vehicle Dealers
The regulations require that anyone operating as a motor vehicle dealer must first obtain a dealer license from the Motor Vehicle Commission. To be eligible for a license:
Dealers must meet certain physical location and facility requirements, including having a display area for vehicles and an office for conducting business.
Dealers must submit a surety bond to ensure that they comply with the state’s motor vehicle laws.
Applicants must complete a background check, including criminal history and financial stability checks.
b) Salespeople
Anyone wishing to work as a salesperson at a licensed dealership must also be licensed by the commission. Salespeople must:
Complete training or pass an exam that ensures they understand Tennessee’s laws related to vehicle sales, leasing, and consumer protection.
Be employed by a licensed dealership in order to apply for and hold a salesperson license.
Submit to a background check.
c) Manufacturers & Distributors
Vehicle manufacturers and distributors must also be licensed by the Motor Vehicle Commission. They must:
Submit documentation showing they are properly authorized to manufacture or distribute vehicles in Tennessee.
Provide a surety bond to protect consumers and the state against improper practices.
Comply with any rules and regulations related to the distribution of vehicles, including warranties, pricing, and sales methods.
3. Dealer Operations
a) Dealership Practices
Licensed dealerships must operate in compliance with the Tennessee Motor Vehicle Dealer License Act and the Tennessee Consumer Protection Act. The regulations govern:
Advertising: Dealerships are required to disclose accurate information about pricing, fees, and promotions in their advertisements to prevent deceptive practices.
Trade-ins and Sales: Regulations govern how dealerships handle trade-in vehicles, including valuation, disclosure of damages, and proper documentation for consumers.
Sales Contracts: Dealerships must provide written contracts to buyers, which must outline the terms of the sale, including financing details, warranties, and any applicable fees.
b) Customer Protection
The rules require dealerships to protect customers by ensuring:
Clear and transparent pricing: Dealerships must display the out-the-door price of vehicles, including taxes and fees, so that customers are not misled.
Disclosure of warranty terms: Any warranties associated with the vehicle must be clearly disclosed to the buyer.
Proper handling of disputes: The Commission has rules regarding how dealerships handle consumer complaints and disputes, with an emphasis on fair resolution.
4. Consumer Protections
The Motor Vehicle Commission has extensive rules in place designed to protect consumers:
Truth in Lending and Finance Charges: Dealers must comply with the Truth in Lending Act and other relevant state laws regarding finance charges, interest rates, and payment terms.
Lien and Title Transfers: Regulations outline the procedures for transferring vehicle titles and ensuring that the title is clear of liens before a sale is completed.
Vehicle History Disclosures: Dealers must disclose the history of a vehicle, including any significant accidents or damage, and must provide access to information like vehicle history reports.
Right of Rescission: In some circumstances, the regulations grant consumers a right of rescission, or the ability to cancel a sale within a specified time frame if certain conditions are met.
5. Investigation and Enforcement
The Motor Vehicle Commission has enforcement authority to ensure that the motor vehicle industry in Tennessee operates fairly:
Complaint Process: Consumers or other industry stakeholders can file complaints with the Commission regarding dealer practices or violations of state law. The Commission investigates these complaints and can take action against violators.
Investigation: The Commission has the authority to investigate dealerships, manufacturers, and salespeople. Investigations can be initiated based on consumer complaints, routine inspections, or random audits.
Disciplinary Action: If a violation is found, the Commission may take disciplinary action, which can include:
Fines for violations of state laws or commission rules.
Suspension or revocation of dealer or salesperson licenses.
Cease and desist orders for practices deemed unlawful.
a) Penalties
Penalties for violating the rules may include:
Monetary fines.
License suspension or revocation.
Civil penalties and legal action.
Restitution to consumers for damages caused by deceptive or unfair practices.
b) Appeal Process
Dealers or salespeople who are subject to disciplinary action by the Commission have the right to appeal the decision. The appeal process is typically handled by an administrative judge, and the final decision can be reviewed by a higher body within the state government.
6. Miscellaneous Regulations
a) Recordkeeping
Motor vehicle dealers must maintain records for a specified number of years, typically:
Sales records, including invoices, contracts, and finance agreements.
Vehicle purchase records, detailing the origins of vehicles sold by the dealership, including proof of title and ownership.
Compliance records related to licensing, surety bonds, and training for sales staff.
b) Temporary Permits
Dealerships may issue temporary permits to new vehicle owners while they wait for permanent registration. These permits are subject to specific regulations and must be issued in accordance with state rules.
c) Bonding Requirements
To operate as a licensed dealer, a surety bond is typically required. The amount varies depending on the size of the dealership but is meant to ensure that dealers fulfill their legal obligations and provide restitution to consumers in cases of fraud or violations.
7. Administrative and Operational Procedures
The Tennessee Motor Vehicle Commission itself follows established administrative procedures, including:
Meetings and Hearings: Regular meetings of the Commission are held to discuss issues within the motor vehicle industry. Hearings may be held to address complaints, disputes, and violations of the law.
Public Participation: Public comments and participation are encouraged during rule-making processes. Stakeholders can provide input on proposed rules or changes to existing regulations.
Conclusion
The Tennessee Motor Vehicle Commission plays a critical role in overseeing the state’s motor vehicle industry. The rules and regulations set forth in Title 0960 of the Tennessee Administrative Code ensure that motor vehicle dealers, manufacturers, and salespeople operate within a structured legal framework designed to protect consumers and promote fairness in the marketplace. From dealer licensing and consumer protection to disciplinary actions and investigations, these regulations ensure that Tennessee's motor vehicle industry operates with transparency, accountability, and integrity.
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