Tex. Occ. Code Section 2352.052
Terms of Agreement


An agreement under this chapter must include:


the dealer’s territory and dealership locations;


the length of the agreement, which must be not less than three years;


performance standards or marketing standards, if any;


working capital, inventory, facility, equipment, or tool standards, including mutually agreed minimum product stocking requirements, if any;


provisions for termination or nonrenewal of the agreement and the designation of a successor dealer in the event of the dealer’s death or disability;


the obligations of the manufacturer, distributor, and dealer in the preparation and delivery of and warranty service on new boats and new boat motors;


the obligations of the manufacturer, distributor, and dealer on termination of the agreement, including inventory of new boats and new boat motors, parts inventory, equipment, furnishings, special tools, and required signs;


mutually agreed standards for maintenance of:


a dedicated or self-funded line of credit, if any; and


a trade-in line of credit or self-funded trade-in line of credit, if any; and


dispute resolution procedures.


At the end of the first year of an agreement, a dealer and manufacturer shall evaluate the dealer’s progress in meeting the agreement’s performance standards, marketing standards, and line of credit standards, to determine whether to enter into a new three-year agreement.


If the dealer and manufacturer enter into a new agreement, the initial agreement is void. If the dealer and manufacturer do not enter into a new agreement, the dealer and manufacturer are bound by the terms and conditions of the initial agreement.


Notwithstanding the terms of a dealer agreement, a dealer agreement and any transaction subject to this chapter must comply with the requirements of this chapter.


Notwithstanding Subsection (a)(2), an initial agreement between a dealer and a manufacturer may have a term of less than three years. An extension or renewal of the initial agreement or a subsequent agreement under this chapter between the same dealer and manufacturer must be for a term of not less than three years.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 5, eff. June 1, 2003.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 1148 (H.B. 1960), Sec. 3, eff. September 1, 2011.

Source: Section 2352.052 — Terms of Agreement, https://statutes.­capitol.­texas.­gov/Docs/OC/htm/OC.­2352.­htm#2352.­052 (accessed Jun. 5, 2024).

Jun. 5, 2024

§ 2352.052’s source at texas​.gov