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2017 Tennessee Code
Title 55 - Motor and Other Vehicles
Chapter 17 - Vehicle Sales Licenses
Part 1 - Motor Vehicle Sales Licenses
§ 55-17-121. Labor rate charged customers by dealers.
Universal Citation: TN Code § 55-17-121 (2017)
- (a) Within ninety (90) days after May 9, 1977, all licensed motor vehicle dealers shall be required to provide to the commission a sworn statement containing the labor rate charged to retail customers and the labor rate charged to the manufacturers or distributors for warranty repairs or servicing. All dealers must give the commission written notice of any changes in these rates within ten (10) days after the changes are made.
- (b) In no event shall a manufacturer or distributor pay to its dealers a labor rate per hour for warranty repairs or servicing less than the dealer's retail labor rate for similar repairs, unless the manufacturer or distributor can show to the commission that the dealer's retail labor rate is improper in light of all economic circumstances.
- (c) No motor vehicle dealer shall charge the manufacturer or distributor a labor rate per hour for warranty work in excess of its posted retail labor rate.
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