Texas Business and Commerce Code
Sec. § 57.101
Transfer of Interest in Dealership by Succession; Single-line Dealer Agreements


(a)

This section applies only to single-line dealer agreements.

(b)

If a dealer dies, a supplier has 90 days in which to consider and make a determination on a request by a family member to enter into a new dealer agreement to operate the dealership. If the supplier determines that the requesting family member is not acceptable, the supplier shall provide the family member with a written notice of its determination with the stated reasons for nonacceptance. This section does not entitle an heir, personal representative, or family member of the dealer to operate a dealership without the specific written consent of the supplier.

(c)

Notwithstanding Subsection (b), if a supplier and dealer have previously executed an agreement concerning succession rights before the dealers death, and if that agreement is still in effect, the agreement shall be observed even if it designates someone other than the surviving spouse or an heir of the decedent as the successor.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1039 (H.B. 3079), Sec. 2, eff. September 1, 2011.
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Last accessed
Mar. 30, 2020