(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.
Terms Used In Tennessee Code 55-13-102
- Contract: A legal written agreement that becomes binding when signed.
- Dealer: means any person, partnership, or corporation who is engaged in, or who intends to engage in the business of selling motor vehicles at retail in this state. See Tennessee Code 55-13-101
- Finance company or finance agency: means any person engaged in the business of financing the sale of motor vehicles, or engaged in the business of purchasing or acquiring promissory notes, either secured by vendor's lien or chattel mortgage, arising from the sale of motor vehicles in this state. See Tennessee Code 55-13-101
- Manufacturer: means any person who is engaged, either directly or indirectly, in the manufacture of motor vehicles. See Tennessee Code 55-13-101
- Motor vehicle: means every vehicle, including a low speed vehicle or a medium speed vehicle that is self-propelled, excluding electric scooters, electric bicycles as defined in §. See Tennessee Code 55-8-101
- Persons: means any individual, firm, corporation, partnership, association, trustee, receiver or assignee for the benefit of creditors. See Tennessee Code 55-13-101
- purchase: include exchange, barter, gift, and offer to contract to sell or buy. See Tennessee Code 55-13-101
- State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
- Wholesale distributor: means any person engaged, directly or indirectly, in the sale or distribution of motor vehicles to agents or to dealers. See Tennessee Code 55-13-101
(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.