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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 J. MANUFACTURERS, DISTRIBUTORS, AND REPRESENTATIVES |
Sec. 2301.454. MODIFICATION OR REPLACEMENT OF FRANCHISE
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(a) Notwithstanding the terms of any franchise, a manufacturer, distributor, or representative may not modify or replace a franchise if the modification or replacement would adversely affect to a substantial degree the dealer's sales, investment, or obligations to provide service to the public, unless:
(1) the manufacturer, distributor, or representative provides written notice by registered or certified mail to each affected dealer and the department of the modification or replacement; and
(2) if a protest is filed under this section, the board approves the modification or replacement.
(b) The notice required by Subsection (a)(1) must:
(1) be given not later than the 60th day before the date of the modification or replacement; and
(2) contain on its first page a conspicuous statement that reads: "NOTICE TO DEALER: YOU MAY BE ENTITLED TO FILE A PROTEST WITH THE TEXAS MOTOR VEHICLE BOARD IN AUSTIN, TEXAS, AND HAVE A HEARING IN WHICH YOU MAY PROTEST THE PROPOSED MODIFICATION OR REPLACEMENT OF YOUR FRANCHISE UNDER THE TERMS OF CHAPTER 2301, OCCUPATIONS CODE, IF YOU OPPOSE THIS ACTION."
(c) A franchised dealer may file a protest with the board of the modification or replacement not later than the latter of:
(1) the 60th day after the date of the receipt of the notice; or
(2) the time specified in the notice.
(d) After a protest is filed, the board shall determine whether the manufacturer, distributor, or representative has established by a preponderance of the evidence that there is good cause for the proposed modification or replacement. The prior franchise continues in effect until the board resolves the protest.