Tex.
Occ. Code Section 2352.053
Termination or Nonrenewal of Agreement; Notice
(a)
Except as provided by Subsection (d), a manufacturer or distributor may not terminate an agreement unless the dealer defaults under Section 2352.0523 (Default) and:(1)
the manufacturer or distributor gives the dealer written notice of the default and possible termination in clear and concise terms;(2)
the notice states the default;(3)
the dealer has been given the applicable cure period to make a good faith effort to cure the default stated in the notice; and(4)
the dealer fails to cure the default.(b)
Good cause is not required for the nonrenewal of an agreement.(c)
The fact that a dealer holds an agreement involving another line, make, or brand of new boat or new boat motor does not constitute a default or grounds for termination of an agreement.(d)
A manufacturer or distributor may terminate an agreement on written notice, without a cure period, if the dealer:(1)
financially defaults to the manufacturer, the distributor, or a financing source;(2)
becomes subject to an order for relief, as that term is used in Title 11, United States Code;(3)
engages in an act of material fraud relating to the performance of a right or obligation under the agreement;(4)
is a corporation that ceases to exist;(5)
becomes insolvent or takes or fails to take any action that constitutes an admission of inability to pay debts as the debts mature;(6)
makes a general assignment for the benefit of creditors to an agent authorized to liquidate any substantial amount of assets;(7)
applies to a court for the appointment of a receiver for any assets or properties;(8)
fails to substantially comply with a federal, state, or local law, rule, regulation, ordinance, or order applicable to the agreement; or(9)
receives three valid notices of a default under Section 2352.0523 (Default) for the same default, whether cured or not, within a 12-month period.
Source:
Section 2352.053 — Termination or Nonrenewal of Agreement; Notice, https://statutes.capitol.texas.gov/Docs/OC/htm/OC.2352.htm#2352.053 (accessed May 26, 2025).
