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Texas Statutes (Last Updated: January 4, 2014) |
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OCCUPATIONS CODE |
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Title 14. REGULATION OF MOTOR VEHICLES AND TRANSPORTATION |
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Subtitle A. REGULATIONS RELATED TO MOTOR VEHICLES |
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Chapter 2301. SALE OR LEASE OF MOTOR VEHICLES |
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Subchapter I. WARRANTIES: REIMBURSEMENT OF DEALER |
Sec. 2301.402. RATE OF COMPENSATION
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(a) A manufacturer or distributor shall fairly and adequately compensate its dealers for warranty work.
(b) A manufacturer or distributor may not pay or reimburse a dealer an amount of money for warranty work that is less than the amount the dealer charges a retail customer for similar nonwarranty work.
(c) In computing the amount of money a dealer charges a retail customer under Subsection (b), the manufacturer or distributor shall use the greater of:
(1) the average labor rate charged during the preceding six months by the dealer on 100 sequential nonwarranty repair orders, exclusive of routine maintenance; or
(2) the average labor rate charged for 90 consecutive days during the preceding six months by the dealer for nonwarranty repairs, exclusive of routine maintenance.