Texas Business and Commerce Code
Sec. § 57.358


A supplier is not required to repurchase from a dealer:


a repair part that, except as provided by Subsection (b), is in a broken or damaged package;


a repair part that because of its condition cannot be resold as a new part without repackaging or reconditioning;


any inventory for which the dealer is unable to furnish evidence, satisfactory to the supplier, of clear title, free and clear of all claims, liens, and encumbrances unless the inventory will be free and clear of all claims, liens, and encumbrances immediately on payment by the supplier of amounts due in this subchapter to the lienholders;


any inventory that the dealer wants to keep, provided the dealer has a contractual right to keep the inventory;


equipment delivered to the dealer before the beginning of the 36-month period preceding the date of notification of termination; and


equipment or a repair part that:


is ordered by the dealer on or after the date of notification of termination;


is acquired by the dealer from a source other than the supplier, unless the equipment or repair part was ordered from, or invoiced to the dealer by, the supplier;


is not in new, unsold, undamaged, or complete condition, subject to the provisions of this chapter relating to demonstrators; and


is not returned to the supplier before the 90th day after the later of:


the effective date of termination of a dealer agreement; or


the date the dealer receives from the supplier all information, including documents or supporting materials, required by the supplier to comply with the supplier’s return policy.


The supplier will be required to repurchase a repair part in a broken or damaged package for a repurchase price that is equal to 85 percent of the current net parts cost for the repair part if the aggregate current net parts cost for the entire package of repair parts is $75 or more.


Subsection (a)(6)(D) does not apply to a dealer if the supplier did not give the dealer notice of the 90-day deadline at the time the applicable notice of termination was sent to the dealer.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1039 (H.B. 3079), Sec. 2, eff. September 1, 2011.
Last accessed
Jul. 5, 2020