Activities for Which License Required — Exception

  1. Law
  2. Tennessee Code
  3. Motor and Other Vehicles
  4. Vehicle Sales Licenses
  5. Motor Vehicle Sales Licenses
  6. Activities for Which License Required — Exception

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    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:
      1. 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;
      2. The auction is conducted by an auctioneer licensed by the Tennessee auctioneer commission;
      3. The motor vehicles are not sold on consignment;
      4. A total of not more than fifteen (15) motor vehicles are sold, each of which is at least four (4) model years old; and
      5. 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.
  2. 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.
  3. 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.
  4. 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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