Tex.
Occ. Code Section 2352.0523
Default
(a)
A default under an agreement under this chapter by a manufacturer, distributor, or dealer is:(1)
a material failure to meet minimum product stocking requirements as specified by the agreement;(2)
a material failure to make timely payment of any material obligation as specified by the agreement;(3)
a material failure to substantially comply with a federal, state, or local law, rule, regulation, ordinance, or order applicable to the agreement; or(4)
an act of material fraud relating to the performance of a right or obligation under the agreement.(b)
A default by a dealer under an agreement under this chapter is:(1)
a material failure to meet applicable performance standards as specified by the agreement for a defined one model year marketing cycle;(2)
a material failure to meet applicable marketing standards as specified by the agreement;(3)
a material failure to meet applicable standards for a dedicated or self-funded line of credit or a trade-in or self-funded trade-in line of credit as specified by the agreement; or(4)
the marketing of the manufacturer’s boats by the dealer outside of the dealer’s territory in violation of this chapter.
Source:
Section 2352.0523 — Default, https://statutes.capitol.texas.gov/Docs/OC/htm/OC.2352.htm#2352.0523 (accessed May 18, 2024).
