Tex.
Bus. & Com. Code Section 57.357
Agreement Terminated by Dealer; Inapplicability of Subchapter to Certain Specialty Suppliers
(a)
This subchapter does not apply to a specialty agricultural equipment supplier if the dealer terminates the dealer agreement without good reason. A dealer has good reason to terminate the dealer agreement for any of the following reasons:(1)
the death or disability of a majority owner of the dealership;(2)
the dealership terminates the dealer agreement and:(A)
substantially all of the dealership assets or all shares of stock of the dealership are sold to a new owner; and(B)
no owner of the terminated dealership continues to own an interest in the continuing dealership;(3)
the filing of bankruptcy by or against the dealership that has not been discharged within 30 days after the date of the filing, the appointment of a receiver, or an assignment for the benefit of creditors; or(4)
the specialty agricultural equipment supplier:(A)
abandons the market or withdraws from the market by no longer selling to the dealer a type of equipment previously sold to the dealer that constituted a material part of the specialty agricultural equipment sold by the supplier;(B)
consistently sells products to the dealer that are defective or breach the implied warranty of merchantability;(C)
consistently fails to:(i)
provide adequate product support for the type and use of the product, including technical assistance, operator and repair manuals, and part lists and diagrams;(ii)
provide adequate training required by the supplier for maintenance, repair, or use of the supplier’s products; or(iii)
provide marketing and marketing support for the supplier’s product if marketing is a requirement of the dealer agreement;(D)
consistently fails to meet the supplier’s warranty obligations to the dealer as required by contract or law, including obligations under this chapter;(E)
has engaged in conduct that is injurious or detrimental to the dealer’s customers, the public welfare, or the dealer’s reputation;(F)
has made material misrepresentations to the dealer or has falsified a record;(G)
has breached the dealer agreement; or(H)
has violated this chapter.(b)
This subchapter may not be construed to limit a specialty agricultural equipment supplier’s obligation to repurchase a dealer’s inventory as provided by this section if the supplier terminates or otherwise discontinues the dealer agreement.
Source:
Section 57.357 — Agreement Terminated by Dealer; Inapplicability of Subchapter to Certain Specialty Suppliers, https://statutes.capitol.texas.gov/Docs/BC/htm/BC.57.htm#57.357 (accessed Apr. 20, 2024).
