2014 Tennessee Code
Title 55 - Motor and Other Vehicles
Chapter 17 - Vehicle Sales Licenses
Part 1 - Motor Vehicle Sales Licenses
§ 55-17-120 - Exception to licensing requirements.

(a) Notwithstanding this part, when motor vehicles of the state are being sold at an automobile auction sale, no license as a motor vehicle dealer shall be required for any person or participant who purchases or bids on the vehicles of the state. This person shall not participate in the sales of any other motor vehicles without being licensed as required by this part, except as provided in § 55-17-102(2)(C).

(b) (1) Notwithstanding any provision of this part to the contrary, whenever heavy construction equipment is being sold at auction, no license as a motor vehicle dealer shall be required for any person or participant who purchases or bids at the auction on any motor vehicle, having three (3), four (4), or five (5) axles that is designed to unload itself and that transports crushed stone, fill dirt and rock, soil, bulk sand, coal, phosphate muck, asphalt, concrete, and other building materials. In addition, no license as a motor vehicle dealer shall be required for any person or participant who purchases or bids at the auction on any motor vehicle, including cars, pick-up trucks, flat bed trucks having two (2) or more axles, service trucks, two-axle dump trucks, or any other vehicle used by the contractor for whose benefit the auction is held or by any other contractor offering such equipment or motor vehicles for sale from the contractor's fleet at the auction. The auction shall not be an automobile auction within this part if the sale of the motor vehicles is incidental to the sale of the heavy construction equipment, and the person conducting the auction need only be licensed as an auctioneer as required by title 62, chapter 19. Notice of the auction shall be given to the motor vehicle commission at least two (2) weeks prior to the auction. The total value of all motor vehicles sold at the auction shall not exceed ten percent (10%) of the sales prices of all equipment sold at the auction.

(2) (A) In addition to the provisions in subdivision (b)(1), no motor vehicle dealer license shall be required for the operator of a permanent auction facility that has been in continuous operation for at least two (2) years prior to January 1, 2008, and that:

(i) Sells large construction equipment in an auction format;

(ii) Has sales of used motor vehicles whose total value does not exceed fifteen percent (15%) of the total value of all equipment sold, including motor vehicles, as calculated on an annual basis;

(iii) Maintains a regularly staffed facility during normal business hours of not less than thirty (30) hours per week;

(iv) Has a permanent facility with at least fifty (50) contiguous fenced acres located in this state;

(v) Has titles present for all vehicles to be sold by auction at the facility;

(vi) Conducts, at the facility, not more than five (5) such auctions in a calendar year, one (1) of which may be a "vehicles only" auction;

(vii) Does not sell new or unused motor vehicles, or vehicles with a manufacturer's statement of origin only; and

(viii) Sells, at the facility, only motor vehicles that:

(a) Weigh in excess of ten thousand pounds (10,000 lbs.) gross vehicle weight rating (GVWR); or

(b) Weigh less than ten thousand pounds (10,000 lbs.) gross vehicle weight rating (GVWR) if owned by an entity that used the motor vehicle in its normal business operation as either a construction or common carrier or transportation-related entity hauling freight.

(B) The auction shall file with the motor vehicle commission on an annual basis a certification stating:

(i) That all such vehicles sold were not vehicles covered under the Tennessee Consumer Protection Act, compiled in title 47, chapter 18, part 1; and

(ii) The gross proceeds of the auction and the value of all vehicles sold at the auction.

(c) (1) Notwithstanding any provision of this part to the contrary, whenever farm equipment and machinery, as defined in § 67-6-102, is being sold at an auction conducted on farm property in accordance with the requirements set forth within subdivision (c)(2), no license as a motor vehicle dealer shall be required for any person or participant who purchases or bids at the auction on a motor vehicle.

(2) If the sale at auction, on property owned or possessed by the farmer, of five (5) or fewer motor vehicles is incidental to the sale at auction of farm equipment and machinery owned and used by the farmer, and if each such motor vehicle is owned for at least one (1) year by the farmer, the farmer's parents, or the farmer's children, and if each such motor vehicle is at least two (2) model years old, and if the farmer has not sold motor vehicles at an auction within the previous twelve-month period, then the auction shall not be an automobile auction within this part, and the person conducting the auction need only be licensed as an auctioneer by the auctioneer commission; provided, that the auctioneer must give at least fourteen (14) days' advance written notification to the motor vehicle commission describing the time and place of the auction as well as the items to be sold therein.