Section 0960-01-.01 - DEFINITIONSFor the purposes of these rules and T.C.A. §§ 55-17-101 et seq. and unless the context requires otherwise:
(1) The term "representative" shall include regional, zone or district executive sales, service and parts personnel whose area of responsibility includes Tennessee and whose duties include contacting motor vehicle dealers or their employees in Tennessee and every other person employed by a motor vehicle manufacturer or distributor, directly or indirectly, to call upon or contact motor vehicle dealers or their employees in Tennessee concerning new motor vehicle sales, advertising, service, parts, business management, used motor vehicle sales or for any other purpose.(2) The term "labor rate" shall mean the total labor cost including salary and benefits, overhead and profit attributable to employees of a motor vehicle dealer performing or assisting in the performance of warranty repairs or servicing.(3) The term "labor rate per hour" shall mean the labor rate per hour attributable to employees of a motor vehicle dealer performing or assisting in the performance of warranty repairs or servicing.(4) The term "warranty repairs or servicing" shall mean the actual work or service, including reasonable diagnostic time, performed by a motor vehicle dealer under the terms of a valid, new car manufacturer's warranty.(5) The term "retail labor rate" shall mean the total labor cost including salary and benefits , overhead and profit attributable to employees of a motor vehicle dealer performing or assisting in the performance of repairs or servicing of vehicles not covered by a new car manufacturer's warranty.(6) The term "posted retail labor rate" shall mean the "retail labor rate" as defined in Rule 069001-.05(5) which has been filed by a motor vehicle dealer with the Tennessee Motor Vehicle Commission pursuant to T.C.A. § 55-17-121(a).(7) The term "manual" shall mean the standard rate manual published by the manufacturer of a line-make or trade name of motor vehicle or any component thereof stating the standard time units required or allotted to perform specific warranty repairs or servicing.(8) The term "sales incentive" shall mean a payment made or other benefit provided by a manufacturer or distributor pursuant to a program to incentivize the retail sale of a vehicle or vehicles distributed by the manufacturer or distributor. Without limiting the foregoing, each of the following is an example of a sales incentive: (1) a payment made or a benefit provided by a manufacturer or distributor for which a buyer of a vehicle from a dealer becomes eligible as a result of purchasing a vehicle, whether the payment or benefit is given to the buyer or to another based on assignment of the right thereto by the buyer of a vehicle; (2) a payment made or benefit provided by a manufacturer or distributor to a dealer because of the dealer's sale of a vehicle; (3) a payment made or a benefit provided by a manufacturer or distributor to a dealer for a dealer's sale of multiple vehicles to meet a goal or objective of a manufacturer or distributor's program; (4) a payment made or a benefit provided by a manufacturer or distributor to a dealer for a dealer's sale of a vehicle or sales of vehicles where the amount of compensation or benefit is determined based on a dealer's sales in comparison to a goal or goals of a manufacturer or distributor's program; and/or (5) a payment made or benefit provided by a manufacturer or distributor to a dealer or the customer on account of the customer's status as an employee of the manufacturer or distributor, a relative of an employee of the manufacturer or distributor, a supplier to the manufacturer or distributor, or as a former customer of the brand, or as a payment or other benefit given to a buyer who currently owns a competing brand as an inducement to purchase a vehicle.(9) The term "factory-installed options" shall include the cost of any optional equipment installed by the manufacturer, physically attached on a motor vehicle upon delivery to the dealer, and shall also mean the cost of any item as described in 15 U.S.C. § 1232(f)(2).(10) The term "dealer-installed accessories" shall include the cost of any optional equipment or accessories installed by the motor vehicle dealer, physically attached on a motor vehicle at the time it is advertised for sale.(11) The term "factory transportation costs" shall include the cost of the transportation of the motor vehicle to the location of the motor vehicle dealer and shall also mean the cost of any item as described in 15 U.S.C. § 1232(f)(3).Tenn. Comp. R. & Regs. 0960-01-.01
Original rule certified May 31, 1974. Repealed and refiled October 23, 1978; effective January 29, 1979. Amendment filed June 22, 2011; effective September 20, 2011. Amendments filed January 20, 2022; effective 4/20/2022.Authority: T.C.A. § 55-17-107.