(a)

Attorney's Note

Under the Tennessee Code, punishments for crimes depend on the classification. In the case of this section:
ClassPrisonFine
class A misdemeanorup to 11 monthsup to $2,500
For details, see Tenn. Code § 40-35-111

Terms Used In Tennessee Code 55-17-109

  • Automobile auction: means :
    (A) Any person offering motor vehicles for sale to the highest bidder where buyers are licensed motor vehicle dealers or their duly authorized agents. See Tennessee Code 55-17-102
  • Commission: means the motor vehicle commission created by this part. See Tennessee Code 55-17-102
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Dealer: means every person engaged in the business of buying, selling or exchanging vehicles of a type required to be registered and who has an established place of business for that purpose in this state. See Tennessee Code 55-8-101
  • Distributor branch: means a branch office similarly maintained by a distributor or wholesaler for the same purpose a factory branch is maintained. See Tennessee Code 55-17-102
  • Distributor representative: means a representative employed by a distributor or employed by a distributor branch or wholesaler for the purpose of making or promoting the sale of motor vehicles or for supervising, servicing, instructing, procuring, contracting or contacting for any reason motor vehicle dealers or prospective motor vehicle dealers or their employees. See Tennessee Code 55-17-102
  • Established place of business: means a permanent structure or structures owned, leased or rented by a motor vehicle dealer providing signs, facilities and office space used exclusively for buying, selling, displaying, advertising, demonstrating, servicing or repairing motor vehicles or functional or nonfunctional parts of motor vehicles and where replacement parts, repair tools and equipment as well as the books and records needed to conduct the business are kept. See Tennessee Code 55-17-102
  • Factory branch: means the branch office maintained by a manufacturer for the sale or transfer of motor vehicles to distributors or to motor vehicle dealers or which is maintained for directing and supervising the representatives of the manufacturer. See Tennessee Code 55-17-102
  • Factory representative: means a representative employed by a manufacturer or employed by a factory branch for the purpose of making or promoting the sale of motor vehicles or for supervising, servicing, instructing, procuring, contracting or contacting for any reason motor vehicle dealers or prospective motor vehicle dealers or their employees. See Tennessee Code 55-17-102
  • Manufacturer: means any person who manufactures or assembles new and unused motor vehicles or recreational vehicles, or who maintains factory representatives. See Tennessee Code 55-17-102
  • Motor vehicle: means any self-propelled motor-driven vehicle of the type and kind required to be registered and titled under chapter 1 of this title, and includes, but is not limited to, "motor vehicle" as defined in §. See Tennessee Code 55-17-102
  • Motor vehicle dealer: means any person not excluded by subdivision (17), engaged in the business of selling, offering to sell, soliciting or advertising the sale of motor vehicles or used recreational vehicles, or possessing motor vehicles or used recreational vehicles for the purpose of resale, either on that person's own account or on behalf of another, either as that person's primary business or incidental to that person's business. See Tennessee Code 55-17-102
  • Person: means every natural person, partnership, corporation, association, trust, estate, or any other legal entity. See Tennessee Code 55-17-102
  • Sale: means the issuance, transfer, agreement for transfer, exchange, pledge, hypothecation, mortgage in any form, whether by transfer in trust or otherwise, of any motor vehicle or interest therein or of any franchise related thereto, as well as any option, subscription or other contract, or solicitation looking to a sale, offer or attempt to sell in any form, whether spoken or written. See Tennessee Code 55-17-102
  • 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
  • Statute: A law passed by a legislature.
  • Vehicle: means every device in, upon or by which any person or property is or may be transported or drawn upon a highway, excepting devices used exclusively upon stationary rails or tracks. See Tennessee Code 55-8-101
  • written: includes printing, typewriting, engraving, lithography, and any other mode of representing words and letters. See Tennessee Code 1-3-105
  • Year: means a calendar year, unless otherwise expressed. See Tennessee Code 1-3-105
(1) It is unlawful for any person to engage in business as, or serve in the capacity of, or act as a manufacturer, distributor, factory branch, distributor branch, factory representative, distributor representative, motor vehicle dealer, motor vehicle salesperson or automobile auction without first obtaining a license as required in this part.
(2) Notwithstanding any of this part to the contrary, an automobile auction license shall not be required for a motor vehicle dealer licensed to sell used motor vehicles if:

(A) No more frequently than once a year, the dealer utilizes an auction format to sell used motor vehicles at the dealer’s established place of business;
(B) The auction is conducted by an auctioneer licensed by the Tennessee auctioneer commission;
(C) The motor vehicles are not sold on consignment;
(D) A total of not more than fifteen (15) motor vehicles are sold, each of which is at least four (4) model years old; and
(E) The dealer provides at least ten (10) days’ advance written notification to the commission describing the time and place of the auction as well as the motor vehicles to be sold in the auction.
(b) It is a Class A misdemeanor for any person, firm, association, corporation, or trust to engage in business as, or act as, an automotive dismantler and recycler in this state without first obtaining a license therefor as provided in this part.
(c) The commission shall neither create nor issue any category of license other than those categories specifically required by this chapter. It is unlawful for any person to commercially engage in any activity involving the distribution and/or sale of motor vehicles or recreational vehicles without first qualifying for and obtaining a license or licenses specifically authorized by this chapter unless the requirement for licensure is specifically exempted by statute.
(d) Public automobile auctions shall be licensed and regulated by the Tennessee auctioneer commission and the Tennessee motor vehicle commission when engaged in the sale of motor vehicles.
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