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Texas Statutes (Last Updated: January 4, 2014) |
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BUSINESS AND COMMERCE CODE |
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Title 4. BUSINESS OPPORTUNITIES AND AGREEMENTS |
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Chapter 57. AGRICULTURAL, CONSTRUCTION, INDUSTRIAL, MINING, FORESTRY, LANDSCAPING, AND OUTDOOR POWER EQUIPMENT DEALER AGREEMENTS |
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Subchapter H. REPURCHASE OR OTHER OBLIGATIONS FOLLOWING CANCELLATION OR NONRENEWAL OF AGREEMENT |
Sec. 57.357. AGREEMENT TERMINATED BY DEALER; INAPPLICABILITY OF SUBCHAPTER TO CERTAIN SPECIALTY SUPPLIERS
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(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.