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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. 2301.481. PROPERTY USE AGREEMENT
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(a) A manufacturer, distributor, or representative may not require that a dealer enter into a property use agreement as a condition of the manufacturer, distributor, or representative:
(1) entering into a franchise;
(2) approving a franchised dealer's application to add a line-make;
(3) approving a franchised dealer's application to relocate a franchise; or
(4) approving a sale or transfer of a dealer, dealership, or franchise.
(b) The following provisions in a property use agreement are void and unenforceable:
(1) a limitation on the franchised dealer's ability to add a line-make; or
(2) a provision that binds a franchised dealer's successor.
(c) A property use agreement expires on the earlier of:
(1) the date provided by the property use agreement; or
(2) the termination of the franchise between the parties to the property use agreement.
(d) This section applies to a subsidiary of, or a person controlled by, a manufacturer, distributor, or representative.