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Texas Statutes (Last Updated: January 4, 2014) |
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OCCUPATIONS CODE |
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Title 8. REGULATION OF ENVIRONMENTAL AND INDUSTRIAL TRADES |
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Chapter 1304. SERVICE CONTRACT PROVIDERS AND ADMINISTRATORS |
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Subchapter A. GENERAL PROVISIONS |
Sec. 1304.003. SERVICE CONTRACT
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(a) In this chapter, "service contract" means an agreement:
(1) that is entered into for a separately stated consideration and for a specified term; and
(2) under which a provider agrees to repair, replace, or maintain a product, or provide indemnification for the repair, replacement, or maintenance of a product, for operational or structural failure or damage caused by a defect in materials or workmanship or by normal wear.
(b) A service contract may also provide for:
(1) incidental payment or indemnity under limited circumstances, including towing, rental, and emergency road service;
(2) the repair or replacement of a product for damage resulting from a power surge or for accidental damage incurred in handling the product; or
(3) identity recovery, as defined by Section 1306.002, if the service contract is financed under Chapter 348 or 353, Finance Code.
(c) For purposes of Subsection (a), normal wear for a motor vehicle may include minor and reasonable wear and tear that a vehicle sustains in everyday ordinary operation including:
(1) small dents, dings, and creases repairable by the process of paintless dent removal without affecting the existing paint finish and without replacing vehicle body panels or sanding, bonding, or painting;
(2) small windshield chips and cracks repairable without replacement of the entire windshield;
(3) worn tire tread;
(4) worn interior fabric or carpet items; and
(5) tire and wheel damage resulting from ordinary road hazards such as potholes, rocks, wood debris, metal parts, glass, plastic, or composite scraps.
(d) Subsection (c)(5) does not apply to tire damage covered under an agreement sold by a tire manufacturer.