ÿWPCh  rµek¢KT4é/¹².66š­é}q8š6taó“4öðÒÚl⢔j<^ã.E®`ˬEÓ”"N* ;`ûø¿d·Š…M `ø-q²?7`šÛªC7üÜ`1)IÅkÑàp lN©Õi¢Á‹šp†ÖzÁœÌ«ð$g·ª5"&ÁÞa•\ó—K]´ UÔÃ($ÿ†„WDîÅ+d¸ÖU‰(Íù‰ ƒ¯Ÿ“ã8'HÂ/¹Wd)í‹59mç!ôÝ:(§Žßúb%I|'òÎfý¯µjÀæVû@åŸERqß7Åîð‹!ì!HBÒòDê@ÔÌ·s°:v–³èo:£r[û¦Z‡÷b®JÙN2Ð1çn|–8 .‰ð\zAÙU¼Mö—q@3Èž¥bœ(C¬Fv_AÃ^Ð êƒÃÇ0pÕÅÍÈE´Ì¸f‘¾Ã²ü½.Œ(|b*‡VY„ë lz\µçÒâ:‚A ƒµ¹R{ÉédF­öãØm¹^è[¢œ7÷C-0a0¸ÛÞ'êÅbY¼bº0½µÓ²‹z ’1yûú1¦C¢4Þzªa4M‘fàm…~1–HâRp™ œ ߌ%Ú7OÓž½o8ÙB4½ý,S˜DV]ër*# LUNW %¥ 0(«U:Ów@ 4MaU:p 0Dª‰î 0—w 0DER— Ÿ U:ŸŸŸŸŸŸŸŸŸŸLÙ%%%% AQ-Æ~ BD 0Da 0D¥¥ D/éé B D35˜HP LaserJet 4SiHPPCL5MS,ü,,,,,ü0nLlÎ(ÈhH  Z 6Times New Roman RegularX($¡¡, øð AZ"Arial Regular €{‚Dƒ„D…†U‡UˆÓ€’ê‚_#3|x’, øð AZ‹"Arial Regular(3¯$¢¢Ý ƒ!ÝÝ  Ý Ñ#€iXÿÿd#ÑÑ\R AØ'ÿ Legal\Ñ(G(2Z$¤¤Ý ƒ!ÝÝ  ÝÓ  ÓÔ€ôqôXXÔà  àòòÚ  Ú0Ú  Úóó(#Ã$òòÚ  Ú0Ú  Úóó ;Ý ƒ Z$ÝÓ  ÓÔ€ôqôXXÔà  àòòÚ  Ú1Ú  ÚóóÝ  ÝÔ‡ ôûôôôqÔOn€appeal,€NES€argues€that€its€action€are€exempt€from€the€Tennessee€Consumer€Protection€Act.€Ð ° ÐSpecifically,€NES€insists€that€it€falls€under€the€exemption€provided€for€under€Tenn.€Code€Ann.€ðð€47„18„¼111(a)(1):Ìà8  àà8` Ð Ð à(a)€The€provisions€of€this€part€do€not€apply€to:Ð ` x` x Ðà8  àà8` Ð Ð à(1)€Acts€or€transactions€required€or€specifically€authorized€under€the€lawsÏadministered€by,€or€rules€and€regulations€promulgated€by,€any€regulatoryÏbodies€or€officers€acting€under€the€authority€of€this€state€or€of€the€UnitedÏStates.€.€.Ô#†ôqôô ôûn#ÔÐâ 2` x` x ÐÔ‡ ôûôôôqÔNES€did€not€make€the€argument€in€the€court€below,€and€presents€this€theory€for€the€first€time€on€appeal.€€Ð   ð  ÐQuestions€or€issues€not€raised€in€the€trial€court€will€not€be€entertained€on€appeal.€€òòLawrence€v.€Stanfordóó,€655Ð ° ÐS.W.2d€927,€929€(Tenn.€1983);€òòSeay€v.€County€of€Shelbyóó,€672€S.W.2d€404,€409€(Tenn.€Ct.€App.€1984);€Ð pÀ ÐòòSutton€v.€Bledsoeóó,€635€S.W.2d€379,€382€(Tenn.€Ct.€App.€1981).Ô#†ôqôô ôû+#Ô öÝ ƒ ¯"ÝÝ  ÝÔ€X´ÍXXXÔÔ€‰XXX´ÍÔÓ  Óò òÔ Ad ÔFILEDÔ€X´ÍX‰XÔÐ  ÐÌJuly€15,€1998ÌÌCecil€W.€CrowsonÌAppellate€Court€ClerkÔdAhÔó ó,c½¬AZ‹"Arial RegularC:\OFFICE\WPWIN\TEMPLATE\STANDARD.WPT! #$&Cþÿ<< CÿÿƒLevel 1Level 2Level 3Level 4Level 5 d(3¯$££Ý ƒ!ÝÝ  Ý($$””ò òÚ  Ú1Ú  Úó ó(('÷ÿ dxdüÿP Pd""""'ÿÿdxdÝ ƒ!ÝÝ  ÝÔ€XœbXXXÔÓ  ÓÑTR[  AØ'ÿ Legal3Ø' AØ'ÿ Legalÿ3Ø'TÑÔ‡ X´ÍXXXœbÔÑ7€ žXXdðXXdð7ÑÑ€ ¶?Ññˆñ›ñˆññ’ññˆñßr€ )<,(j 8` `€€@Eȱ` 8ttxP°ð  rßñˆññ’ññ’ññ’ññˆñ›ñˆñà@m m ìàò òIN€THE€COURT€OF€APPEALS€OF€TENNESSEEˆÌà@$ìàAT€NASHVILLEˆÌÌÌNASHVILLE€ELECTRIC€SERVICE,à À à)€€Ð `° Ðà  àà ` àà ¸ àà  àà h àà À à)Ìà  àà ` àó óPlaintiff/Counter„à h àà À àò ò)€€Davidson€Circuit€No.€93C„2880Ð 8 ˆ Ðà  àà ` àó óDefendant/Appellee,à À àò ò)ó óÐ $ t Ðà  àà ` àà ¸ àà  àà h àò òà À à)Ð  ` Ðñ’ññ’ñVS.à  àà ` àà ¸ àà  àà h àà À àœ)€€Appeal€No.›€œ01A01„9708„CV„00383€€€€€€€€€€€€€€€€Ð ü L  Ѐ€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€)€€€(ñññ€ñcñ€ññññ‚ñññCñññ‚ññ„ññƒñCñƒññ„ññ…ñcñ…ñonsolidated)Ìñ’ññ’ñDON›€STONE,à ¸ àà  àà h àà À àœ)›Ð Ô$  Ðñ’ññ’ñà  àà ` àà ¸ àà  àà h àà À à)Ìà  àà ` àó óDefendant/Counter„à À àò ò)ó óÐ ¬ü  Ðà  àà ` àClaimant/Appellant,à h àà À àò ò)ó óÐ ˜è  ÐÌà@||ìàAPPEAL€FROM€THE€CIRCUIT€COURT€OF€DAVIDSON€COUNTYˆÌà@ìàAT€NASHVILLE,€TENNESSEEˆÌà@Z Z ìàTHE€HONORABLE€WALTER€C.€KURTZ,€JUDGEˆÌñ’ñœßt€ )>.*jxiü#` `€€@E1?` 8ttxPið # tß›ñ’ñÌÌÌÌÌÌÌò òDAVID€J.€TARPLEYó óÐ f¶ Ðò òLEGAL€AID€SOCIETY€OF€MIDDLE€TENNESSEEó óÐ R¢ ÐNashville,€TennesseeÌAttorney€for€AppellantÌÌÌÌò òJOHN€E.€BUFFALOE,€JR.Ð ¼" ! ÐBUFFALOE€&€SHARPó óÐ ¨#ø" ÐNashville,€TennesseeÌAttorney€for€AppelleeÌÌÌÌÌÌÌÌò òAFFIRMEDÐ ª,ú', ÐÌÌÌÌÌÌó óà  àà ` àà ¸ àà  àà h àà À àà  àà p àà È àò òALAN€E.€HIGHERS,€J.Ð 3n.3 ÐÌÌÌCONCUR:ÌÌDAVID€R.€FARMER,€J.ÌÌHOLLY€KIRBY€LILLARD,€J.ó óÔ#†XœbXX X´Íš#ÔÔ‡ X´ÍXXXœbÔà h àœÐ ~:Î5; ÐñˆñÑ ¶?ÑÑ7€œbXXdðXXdð7ÑÑTR[  AØ'ÿ Legal[  AØ'ÿ Legal AØ'ÿ Legal AØ'ÿ LegalTÑÑ  ÑÑ ¶?ÑÑ#€iXÿÿd#ÑÑ\R AØ'ÿ Legal\ÑÑ  ÑñˆñÓÓñ†ñÐ j;º6< ÐÑ ¶?ÑÑ7€œbXXdðXXdð7ÑÑTR[  AØ'ÿ Legal[  AØ'ÿ Legal AØ'ÿ Legal AØ'ÿ LegalTÑÑ  Ññ†ññˆññ†ñÑ ¶?ÑÑ7€lHXXdðXXdð7ÑÑTR[  AØ'ÿ Legal[  AØ'ÿ Legal AØ'ÿ Legal AØ'ÿ LegalTÑÑ  Ññ†ññˆñà  àDefendant/counter›€claimant/appellant,€Don€Stone€(ð ðStoneðð),€appeals€the€judgmentÐ ° Ðñ†ñÑ ¶?ÑÑ7€lHXXdðXXdð7ÑÑTR[  AØ'ÿ Legal[  AØ'ÿ Legal AØ'ÿ Legal AØ'ÿ LegalTÑÑ  Ññ†ññ„ñÑ ¶?ÑÑ7€lHXXdðXXdð7ÑÑTR[  AØ'ÿ Legal[  AØ'ÿ Legal AØ'ÿ Legal AØ'ÿ LegalTÑÑ  Ññ„ññ‚ñÑ ¶?ÑÑ7€lHXXdðXXdð7ÑÑTR[  AØ'ÿ Legal[  AØ'ÿ Legal AØ'ÿ Legal AØ'ÿ LegalTÑÑ  Ññ‚ñññÑ ¶?ÑÑ7€lHXXdðXXdð7ÑÑTR[  AØ'ÿ Legal[  AØ'ÿ Legal AØ'ÿ Legal AØ'ÿ LegalTÑÑ  ÑññññÑ ¶?ÑÑ7€lHXXdðXXdð7ÑÑTR[  AØ'ÿ Legal[  AØ'ÿ Legal AØ'ÿ Legal AØ'ÿ LegalTÑÑ  Ñññof€the€trial€court€dismissing€his€counterclaim€holding€that€the€Federal€Trade€CommissionÏ(ð ðFTCðð)€rules€and€regulations€do€not€impose€upon€a€third€party€creditor€such€as€NES€theÏdirect€responsibility€of€placing€the€language€of€the€ð ðholderðð€rule€codified€at€16€C.F.R.€ððÏ433(b)(2)€in€their€loan€documents.€€For€reasons€stated€hereinafter,€we€affirm€the€judgmentÏof€the€trial€court.€ÌÌà  àIn€1991,€Stone€was€contacted€by€a€Nashville€air€conditioning€and€heating€contractor,ÏAssociated€Air/Heat€and€Construction,€Inc.€(ð ðcontractorðð),€which€was€soliciting€his€business.€ÏœAn›€appointment€was€set€up€for€a€representative€of€the€company€to€visit€Stone€at€his€home.€Ïà  àÌà  àStone€did€not€have€central€heat€and€air€conditioning.€€œInstead,›€he€used€keroseneÏheaters€and€a€wood€stove€to€heat€his€home.€€œÔ#†XœbXX X´Í; #ÔÔ‡ X´ÍXXXœbÔAs›€a€result€of€this€meeting,€Stone€purchasedÐ @ Ða€central€heat€and€air€system€that€was€installed€by€the€contractor.€€œThe›€contractorððsÏrepresentative€told€Stone€that€he€could€arrange€financing€for€the€system€via€NES.€€œNo›€otherÏfinancing€options€were€discussed.€œÔ#†XœbXX X´Í©#ÔÔ‡ X´ÍXXXœbÔContractor›€contacted€NES€and€made€all€theÐ ¤ô Ðarrangements€for€financing€of€the€heating€and€air€system.€œÔ#†XœbXX X´Í #ÔÔ‡ X´ÍXXXœbÔStone›€had€no€part€in€theÐ p!À  Ðfinancing€arrangements.€Ô#†XœbXX X´ÍÅ#ÔÔ‡ X´ÍXXXœbÔÐ <#Œ" Ðà  àÌà  àAfter€the€system€was€installed,€it€never€heated€properly.€€œSpecifically,›€the€systemÏfailed€to€discharge€the€warm€air€with€sufficient€force€to€reach€the€lower€part€of€the€rooms.€ÏœÔ#†XœbXX X´ÍM#ÔÔ‡ X´ÍXXXœbÔVarious›€tests€were€run€by€experts€to€calculate€the€discrepancy€between€air€in€the€lower€partÐ l*¼%* Ðof€the€rooms€and€air€in€the€upper€parts.€€œÔ#†XœbXX X´Ír #ÔÔ‡ X´ÍXXXœbÔThese›€test€showed€variances€as€much€as€20Ð 8,ˆ', Ðdegrees€Fahrenheit€between€the€upper€and€lower€parts€of€the€rooms.€€œÔ#†XœbXX X´ÍQ!#ÔÔ‡ X´ÍXXXœbÔStone›€complainedÐ .T). Ðabout€his€system€and€was€unable€to€pay€the€huge€electric€bills€caused€by€the€systemððsÏoperation.€€œStone€went›€back€to€the€use€of€his€kerosene€heaters€and€wood€stove.€Ô#†XœbXX X´Í"#ÔÔ‡ X´ÍXXXœbÔ€He€alsoÐ œ1ì,2 Ðquit€paying€his€loan€to€NES.€Ô#†XœbXX X´Í)##ÔÔ‡ X´ÍXXXœbÔÐ h3¸.4 Ðà  àÌà  àNES€inspected€Stoneððs€system€twice,€discovering€both€times€that€the€force€with€œñ‡ñÌÐ Ì84: Ðñ‡ñwhich›€the€air€was€emitted€was€insufficient.€€œNES›€does€not€deny€the€fact€that€the€systemÏwhich€was€installed€in€Stoneððs€home€does€not€heat€œproperly.›€€œBut›€as€in€all€such€cases,€NESÏdisclaims€any€and€all€responsibility€for€the€problem€in€the€system€for€defects€and€for€faultyÏwork€of€the€contractor.€Ìà  àÌñ†ñœñ†ñà  àœà ` àStone€argues€that€NES€should€be€required€to€include€within€its€ResidentialÏEnergy€Services€Program€loan€documents€the€language€of€the€FTC€ð ðholderðð€rule,€16€C.F.R.Ïðð€433.2(b),€and€the€fact€that€NES€does€not€do€so€should€be€viewed€as€an€unfair€tradeÏpractice€in€violation€of€the€Tennessee€Consumer€Protection€Act.€€Consequently,€StoneÏcontends€that€he€should€be€awarded€his€actual€damages€as€proved€at€trial€or€in€theÏalternative,€his€claim€should€be€remanded€to€the€trial€court€for€a€determination€of€the€actualÏdamages€suffered€by€him€as€a€result€of€the€defective€work€of€the€HVAC€installer.Ô#†XlHXX XŒ:#ÔÔ‡ XŒXXXlHÔÐ tÄ ÐÌà  à€NES›€contends€that€the€trial€court€was€correct€in€recognizing€that€the€FTC€itself€didÏnot€apply€the€said€regulation€to€a€lender.€€Additionally,€NES€claims€that€it€is€exempt€fromÏthe€Tennessee€Consumer€Protection€Act€under€Tenn.€Code€Ann.€ðð€47„18„111(a)(1)€whichÏexempts€those€whose€actions€or€transactions€are€ð ðrequired€or€specifically€authorized€underÏthe€laws€administered€by,€or€rules€and€regulations€promulgated€by,€any€regulatory€body€orÏofficer€acting€under€the€authority€of€the€state€of€Tennessee€or€of€the€United€States.ðð€€NESÏasserts€that€œit›€was€operating€under€œa€program›€in€conjunction€with€the€Tennessee€ValleyÏAuthority€(ð ðTVAðð).€€NES€further€contends€that€TVA€is€an€agency€of€the€U.S.€GovernmentÏthat€contracted€with€Metropolitan€Government€of€Nashville€and€Davidson€County€to€run€theÏResidential€Energy€Services€Program.€€NES€states€that€this€program€was€funded€by€TVAÏand€administered€by€NES€and,€as€such,€was€authorized€by€the€laws,€rules,€and€regulationsÏpromulgated€by€TVA.€€Therefore,€NES€contends,€this€transaction€was€exempt€from€theÏTennessee€Consumer€Protection€Act.œ×ƒ×Ý ƒ #ÃÝòòÚ  Ú1Ú  ÚóóÝ  Ý×  ×›€€€€œÔ#†XlHXX XŒÚ##ÔÐ œ1ì,2 Л‡à  àOn€August€13,€1993,€NES€filed€a€civil€action€against€Stone€in€the€MetropolitanÏGeneral€Sessions€Court€for€Davidson€County,€Tennessee.€€œAn›€appeal€was€taken€to€theÏCircuit€Court€on€pauperððs€œoath,›€and€on€June€30,€1994,€an€answer€and€counterclaim€wereÏfiled€by€Stone.€€œCentral›€to€this€appeal€is€Stoneððs€assertion€that€NES,€while€not€a€participantÏin€the€contractorððs€alleged€wrongdoings,€had€violated€the€Tennessee€Consumer€ProtectionÏAct€by€failing€to€include€in€its€œloan›€documents€the€language€specified€in€part€(b)€of€the€FTCÏð ðholderðð€rule€at€16€C.F.R.€ðð€433.€€Stone€contends€that€if€this€language€had€been€includedÏin€such€documents,€NES€would€have€subjected€itself,€as€a€third€party€lender,€to€limitedÏliability€for€any€claims€or€defenses€that€Stone€might€have€had€against€the€contractor€whoÏinstalled€the€system.€ÌÌà  àOn€August€22,€1994,€a€third€party€complaint€was€filed€by€Stone€against€theÏcontractor.€€œAt›€the€time€of€his€filing€this€complaint,€Stone€was€unaware€that€the€contractorððsÏbusiness€was€defunct€and€bankrupt.ÌÌà  àOn€November€27,€1995,€the€trial€court€issued€a€memorandum€opinion€in€which€theÏcourt€found€that€the€heating€and€air€system€purchased€by€Stone€and€financed€by€NES€didÏnot€heat€Stoneððs€home€satisfactorily,€but€that€NES€was€not€liable€to€Stone€for€theÏshortcomings€of€the€system.€œSpecifically,›€the€court€rejected€Stoneððs€ð ðback€doorÏinterpretationðð€of€the€law€and€held€that€because€the€FTC€rule€does€not€impose€upon€thirdÏparty€creditors€the€direct€responsibility€of€placing€the€language€of€the€ð ðholderðð€rule€in€theirÏown€documents,€there€could€be€no€Tennessee€Consumer€Protection€Act€violation€by€a€thirdÏparty€creditor€who€omits€the€language€of€the€rule€from€its€documents.€€œJudgment›€wasÏentered€against€Stone€for€the€full€unpaid€balance€of€his€account€with€NES€plus€attorneyððsÏfees,€for€a€total€judgment€of€$9,874.00.€€The€counterclaim€was€dismissed.€€œStoneððs›€motionÏfor€reconsideration€of€the€judgment€was€overruled€by€order€entered€on€January€29,€1996.€Ïà  àBy€order€entered€on€June€21,€1996,€Stoneððs€initial€appeal€to€this€Court€wasÐ p5À04 Ðdismissed€without€prejudice€because€the€record€contained€no€final€order€dismissing€theÏthird€party€complaint€filed€against€the€defunct€contractor.€€That€error€was€corrected€by€orderÐ 09€48 Ðentered€in€the€trial€court€on€March€10,€1997.€€Permission€to€appeal€on€pauperððs€oath€wasÏgranted€by€the€trial€court€on€May€2,€1997.€€ÌÌà  àThe€sole€issue€before€this€Court€is€as€follows:ÌÓÓà8  àà8` Ð Ð àDid€NES€violate€the€Tennessee€Consumer€Protection€Act,ÏTenn.€Code€Ann.€ðð€47„18„101€òòet€seqóó.,€by€failing€to€ensure€thatÐ  p  Ðthe€loan€documents€presented€by€it€and€signed€by€Stone€toÏfinance€the€purchase€of€a€central€heating€and€air€system€for€hisÏresidence€under€the€Residential€Home€Energy€ServicesÏProgram€contained€the€statement€required€by€the€FTC€ð ðholderððÏrule,€16€C.F.R.€ðð€433?Ð ` x` x ÐÌÌÌÓÓà  àFor€many€years,€the€doctrine€of€holder„in„due„course€has€allowed€a€holder€toÏdemand€payments€from€a€consumer€for€goods€or€services€purchased€on€an€installmentÏplan,€even€thought€the€seller€may€unjustifiably€refuse€to€service,€repair,€or€replace€theÏgoods€or€services€promised€during€the€sales€transaction.€€On€November€14,€1975,€the€FTCÏaddressed€this€problem€by€promulgating€a€final€Trade€Regulation€Rule,€16€C.F.R.€ðð€433,Ïconcerning€the€Preservation€of€Consumersðð€Claims€and€Defenses.€€41€Fed.€Reg.€at€20022Ï(1976).€€Part€433€stipulates€that€it€constitutes€an€unfair€and€deceptive€practice€within€theÏmeaning€of€Section€5€of€the€Federal€Trade€Commission€Act€(15€U.S.C.€ðð€45)€for€a€seller,Ïin€the€course€of€financing€a€consumer€purchase€of€goods€or€services,€to€employÏprocedures€which€make€the€consumerððs€duty€to€pay€independent€of€the€sellerððs€duty€to€fulfillÏhis€or€her€obligations.€€41€Fed.€Reg.€at€20023.€€The€federal€regulation€provides:ÌÓÓà8  àà8` Ð Ð àIn€connection€with€any€sale€or€lease€of€goods€or€services€toÏconsumers,€in€or€affecting€commerce€as€ð ðcommerceðð€is€definedÏin€the€Federal€Trade€Commission€Act,€it€is€an€unfair€orÏdeceptive€act€or€practice€within€the€meaning€of€Section€5€ofÏthat€Act€for€a€òòselleróó,€directly€or€indirectly,€to:Ðð-@),` x` x ÐÌà8  àà8` Ð Ð à(b)€Accept,€as€full€or€partial€payment€for€such€sales€or€lease,Ïthe€proceeds€of€any€purchase€money€loan€(as€purchaseÏmoney€loan€is€defined€herein),€unless€any€consumer€creditÏcontract€made€in€connection€with€such€purchase€money€loanÏcontains€the€following€provision€in€at€least€ten€point,€bold€face,Ïtype:Ð ` x` x ÐÌà8  àà8` Ð Ð àANY€HOLDER€OF€THIS€CONSUMER€CREDIT€CONTRACT€ISÏSUBJECT€TO€ALL€CLAIMS€AND€DEFENSES€WHICH€THEÏDEBTOR€COULD€ASSERT€AGAINST€THE€SELLER€OFÏGOODS€OR€SERVICES€OBTAINED€PURSUANT€HERETOÏOR€WITH€THE€PROCEEDS€HEREOF.€€RECOVERYÐ  :p59 ÐHEREUNDER€BY€THE€DEBTOR€SHALL€NOT€EXCEEDÏAMOUNTS€PAID€BY€THE€DEBTOR€HEREUNDER.Óy8ӀР` x` x ÐÓÓà8  àà8` Ð Ð àÐ ` x` x ÐÓÓFTC€Consumer€Claims€and€Defenses,€16€C.F.R.€ðð€433.2€(1975)€(emphasis€added).ÌÌà  àApparently,€the€FTC€found€that€all€too€often,€a€consumer€would€enter€into€a€loan€toÏfinance€the€purchase€of€goods€or€services,€only€to€discover€that€the€quality€of€the€œgoodsÏultimately€is›€œwoefully›€substandard€or€that€the€services€were€performed€in€a€manner€that€isÏless€than€desirable.€œ€The›€purchasers€of€such€goods€or€services€might€think€it€inequitableÏto€continue€to€pay€for€something€so€substandard€or€for€something€not€received€at€all.€ÏHowever,€if€they€probe€deeper€into€the€situation,€such€œconsumers€often›€find€that€theirÏobligation€to€pay€remains€even€though€the€seller€of€such€goods€or€services€has€failed€in€hisÏor€her€obligation€to€perform.€ÌÌà  àMany€times,€as€is€the€case€here,€a€seller€will€arrange€a€direct€loan€for€the€consumerÏfrom€the€lender.€€Because€the€seller€is€never€formally€part€of€this€loan,€the€sellerððs€actionsÏcannot€provide€a€defense,€and€this€is€so€even€if€all€parties€contemplated€that€the€loanÏwould€go€to€pay€the€seller€and€even€if€the€seller€had€a€referral€relationship€with€the€lender.€ÏœIt€is€true€that,›€in€theory,€the€consumer€could€bring€an€action€against€the€seller,€but€manyÏtimes€this€is€less€than€comforting€when€the€seller€is€nowhere€to€be€found€œor›€has€gone€outÏof€business.ÌÌà  àPart€433€is€the€FTCððs€attempt€to€œstem€the€tide€of€these€abuses.›€€The€FTC€aimed€toÏabolish€these€inequities€by€placing€a€greater€responsibility€upon€œfinancial›€institutions€toÏpolice€the€merchants€with€whom€they€deal.€€Statement€of€Basis€and€Purpose,€40€Fed.€Reg.Ï53,506,€53,520€(1975).€€The€FTC€ð ðholderðð€rule€has€two€basic€requirements.€€Under€the€firstÏrequirement,€the€seller€who€makes€a€loan€œpursuant€to›€a€consumer€credit€contract€mustÏinclude€a€notice€in€œthe›€contract€that€any€holder€of€the€contract€is€subject€to€the€claims€andÐ  :p59 Ðdefenses€which€the€consumer€could€assert€against€the€seller.€€16€C.F.R.€ðð€433.2(a).€€TheÏsecond€of€these€requirements€is€somewhat€similar,€but€deals€with€the€seller€who€refersÏconsumers€or€is€affiliated€with€a€lender.€€This€provision€makes€it€an€unfair€or€deceptiveÏpractice€for€such€a€seller€to€accept€the€proceeds€from€a€loan€unless€the€consumer€creditÏcontract€includes€a€notice€that€any€holder€of€the€contract€is€subject€to€the€claims€andÏdefenses€that€the€consumer€could€assert€against€the€seller.€€€òòId.óó€ðð€433.2(b).€€Ð `  ÐÌà  àHere,€Stone€insists€that€NES€should€be€held€liable€under€the€Tennessee€ConsumerÏProtection€Act€for€not€putting€the€language€of€the€FTC€ð ðholderðð€rule€within€its€loanÏœdocuments.›€€Specifically,€Stone€importunes€this€Court€to€find€that€NES€has€committed€anÏunfair€and€deceptive€trade€practice€under€Tenn.€Code€Ann.€ðð€47„18„101€òòet€seq.óó€by€notÐ pÀ Ðincluding€in€its€loan€documents€the€FTC€ð ðholderðð€rule€language.€€He€claims€that€theÏTennessee€Consumer€Protection€Act€incorporates€by€reference€the€language€of€the€FTCÏrule€quoted€above.€ÓÓÌÌÓ$IÓÌà  àIn€support€of€his€argument,€Stone€cites€this€Court€to€two€cases,€one€from€the€FederalÏDistrict€Court€for€the€Northern€District€of€Illinois€and€one€from€the€Pennsylvania€Court€ofÏCommon€Pleas.€€Both€cases€cited€by€Stone€contain€distinguishable€facts€from€the€instantÏcase.€€The€more€important€of€the€two€is€òòHeastie€v.€Community€Bank€of€Greater€Peoriaóó,€727Ð p&À!$ ÐF.€Supp.€1133€(N.D.€Ill.€1989).€€In€òòHeastieóó,€plaintiff€agreed€to€purchase€a€satellite€dish€fromÐ P( #& Ðdefendant€U.S.€Satellite€and€signed€a€cash€sales€contract.€€òòId.óó€at€1134,€1135.€€U.S.€SatelliteÐ 0*€%( Ðand€co„defendant€Community€Bank€of€Peoria€had€a€contractual€agreement€in€whichÏCommunity€Bank€of€Peoria€agreed€to€provide€credit€for€U.S.€Satellite€œcustomers.›€PlaintiffÏsigned€the€loan€documents€which€were€provided€by€Community€Bank€of€Peoria€and€whichÏcontained€the€ð ðholderðð€rule€language€as€required€by€ðð€433.€€œThe›€documents,€however,€alsoÏcontained€a€non„responsibility€clause€which€relieved€Community€Bank€of€Peoria€of€anyÏresponsibility€for€the€quality€of€work€performed€by€U.S.€Satellite.€€œUltimately,›€the€plaintiffÏdiscovered€that€the€satellite€dish€was€defective.€ñ]ñœñ]ñÌÐ 09€48 Ðà  àThe€Illinois€Federal€District€Court€conceded€that€part€433€had€no€application€toÏlenders,€but€stated€that€the€Illinois€Consumer€Fraud€Act€was€broader€than€the€FTCA.€ÏConsequently,€the€court€held€that€Community€Bank€of€Peoria€was€in€violation€of€the€IllinoisÏConsumer€Fraud€Act,€and€therefore€liable€to€the€plaintiff€for€damages.€€òòId.óó€at€1133,€1139.€Ð P   ÐSpecifically,€the€court€concluded€that€Community€Bank€of€Peoriaððs€use€of€the€non„¼responsibility€clause€in€its€loan€documents,€although€not€violative€of€the€FTCA,€violated€theÏIllinois€Consumer€Fraud€Act,€and,€as€such,€was€an€unfair€and€deceptive€trade€practice.€€òòId.Ð ð@  Ðóóat€1138.€€The€court€noted€that€the€Illinois€General€Assembly€had€specifically€stated€that€theÐ Ð  ÐConsumer€Fraud€Act€ð ðshall€be€liberally€construed€to€effect€the€purposes€thereof.ðð€€€€€€€ÌÌà  àThe€precise€language€under€the€federal€law€makes€it€unfair€or€deceptive€for€a€òòselleróóÐ pÀ Ðto€accept€proceeds€from€a€loan€unless€the€consumer€credit€contract€includes€a€notice€thatÏany€holder€of€the€contract€is€subject€to€the€claims€and€defenses€that€the€consumer€couldÏassert€against€the€seller.€€This€same€cannot€be€said€of€the€lender.€€Unlike€òòHeastieóó,€here,Ð ` Ðthe€seller€did€not€place€the€FTC€ð ðholderðð€rule€language€in€the€credit€documents€asÏmandated€by€ðð€433€stated€above.€€As€noted€in€òòHeastieóó,€however,€this€regulation€does€notÐ Ð  Ðapply€to€the€lender.€€The€trial€court€correctly€stated€that€the€burden€is€totally€on€the€sellerÏeither€to€include€the€required€notice€or€not€accept€loan€proceeds€if€the€notice€is€notÏincluded.à ` àÐ p&À!$ Ðà  àÌà  àœWe€decline›€to€cast€the€net€of€the€Tennessee€Consumer€Act€any€wider€than€theÏœlegislature€has›€chosen€to€do.€€NES€was€in€full€compliance€with€the€requirements€of€theÏFTCA.€€For€this€Court€to€declare€that€a€lenderððs€failure€to€include€the€FTC€ð ðholderðð€ruleÏlanguage€in€its€loan€documents€as€a€violation€of€the€Tennessee€Consumer€Protection€ActÏis€legislative€in€nature.€€Until€the€Tennessee€General€Assembly,€in€its€wisdom,€chooses€toÏmake€a€violation€by€the€seller€of€16€C.F.R.€ðð€433€an€ð ðunfair€or€deceptiveðð€act€or€practice€byÏthe€lender,€œwe€will€not€undertake€to›€do€so.Ìà  àÌà  àœñ^ñÐ 09€48 Ðà  àñ^ñAccordingly,›€we€affirm€the€judgment€of€the€trial€court€dismissing€StoneððsÏcounterclaim€under€the€Tennessee€Consumer€Protection€Act.€€Costs€of€this€appeal€areÏtaxed€to€Stone,€for€which€execution€may€issue€if€œnecessary.ÌÌÌÌÓÓà  àà ` àà ¸ àà  àà h àà À àà  àà p àòò€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€Ð ð@  Ðóóà  àà ` àà ¸ àà  àà h àà À àà  àà p àHIGHERS,€J.Ð à0  ÐÌÌÌCONCUR:ÌÌÌÌòò€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€óóÐ `° ÐFARMER,€J.ÌÌÌÌòò€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€óóÐ ` ÐLILLARD,€J.›ÌÌà  à€€€€€€€Ìà  àÌÌà  à€€€€€ÌÌà  àÌÌà8  àà8` Ð Ð àÐ ` x` x ÐÌÌÌà  àœ