(a) It is unlawful for any manufacturer or wholesale distributor of motor vehicles to sell or contract for the sale of motor vehicles to any motor vehicle dealer on the condition, or the agreement, expressed or implied, that the dealer shall finance the purchase or sale of motor vehicles only through a designated finance company or finance agency or class of persons.

(b) Any such condition or agreement, having the effect of eliminating competition in the business of financing the sale of motor vehicles is declared to be against the public policy of the state, and the condition or agreement shall be unlawful, void and unenforceable.

[Acts 1937, ch. 244, § 2; C. Supp. 1950, § 6770.26 (Williams, § 6770.15); T.C.A. (orig. ed.), § 59-1302.]