Part Definitions

1. Law
2. Tennessee Code
3. Commercial Instruments and Transactions
4. Trade Practices
5. Motorcycle and Off-Road Vehicle Dealer Fairness Act
6. Part Definitions

As used in this part, unless the context otherwise requires:

1. “All-terrain vehicle” means a motorized vehicle with no less than four (4) non-highway tires, but no more than six (6) non-highway tires, that is limited in total dry weight to less than two thousand five hundred pounds (2,500 lbs.), and is eighty inches (80") or less in width;
2. “Attachment” means a machine or part of a machine designed to be used on and in conjunction with a motorcycle or off-road vehicle;
3. “Current model” means a model listed in the supplier's, wholesaler's, manufacturer's or distributor's current sales manual or any supplements to the manual;
4. “Current net price” means the price listed in the supplier's price list or catalogue in effect at the time the contract is canceled or discontinued, less any applicable trade and cash discounts;
5. “Dealer” means any person engaged in the business of selling and retailing inventory, who enters into a retail agreement, and who, under the terms of the agreement receives inventory from the supplier. “Dealer” also includes a franchisee who otherwise meets the requirements of a dealer;
6. “Franchise” or “franchise agreement” means a written or oral agreement for a definite or indefinite period, in which a person grants to another person authority to use a trade name, trademark, service mark or related characteristic within an exclusive territory, or to sell or distribute goods or services, within an exclusive territory, at wholesale, retail, by lease agreement or otherwise; provided, that a franchise is not created by a lease, license or concession granted by a dealer to sell goods or furnish services on or from premises that are occupied by the dealer-grantor primarily for its own merchandising activities;
7. “Franchisee” means a person to whom a franchise is offered or granted;
8. “Franchisor” means a person who grants a franchise to another person;
9. “Inventory” means motorcycles, off-road vehicles, attachments and repair parts;
10. “Motorcycle” means a motorcycle as defined in § 55-1-103;
11. “Net cost” means the price the dealer actually paid to the supplier for the inventory, less any applicable trade, volume, or cash bonus discounts, plus freight and set-up expense;
12. “Off-road vehicle” means any off-road motorcycle, all-terrain vehicle, utility vehicle or dune buggy;
13. “Person” means a sole proprietor, partnership, corporation, or any other form of business organization;
14. “Retail agreement” means an agreement, including a franchise agreement that meets the requirements of a retail agreement, whether express, implied, oral, or written, between two (2) or more persons:
    1. By which a person receives the right to:
       1. Sell or lease inventory or services at retail or wholesale; or
       2. Use a trade name, trademark, service mark, logotype, advertising, or other commercial symbol; and
    2. In which the parties to the agreement have a joint interest, whether equal or unequal, in the offering, selling, or leasing of the inventory or services;
15. “Superseded part” means any part that will provide the same function as a currently available part as of the date of cancellation;
16. “Supplier” means a person who enters into a retail agreement and who, under the terms of the agreement, provides inventory or services to a dealer. “Supplier” includes a:
    1. Wholesaler;
    2. Manufacturer;
    3. Franchisor;
    4. Person that is a parent corporation or an affiliated corporation of a person identified in this subdivision (16); and
    5. A field representative, an officer, an agent, or another direct or indirect representative of a person identified in this subdivision (16); and
17. “Terminate” includes the failure to renew.

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