Tex. Occ. Code § 2301.455 · Subchapter J. MANUFACTURERS, DISTRIBUTORS, AND REPRESENTATIVES
DETERMINATION OF GOOD CAUSE FOR TERMINATION, DISCONTINUANCE, MODIFICATION, OR REPLACEMENT.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) Notwithstanding the terms of any franchise, in determining whether good cause has been established under Section 2301.453 or 2301.454, the board shall consider all existing circumstances, including:
(1) the dealer's sales in relation to the sales in the market;
(2) the dealer's investment and obligations;
(3) injury or benefit to the public;
(4) the adequacy of the dealer's service facilities, equipment, parts, and personnel in relation to those of other dealers of new motor vehicles of the same line-make;
(5) whether warranties are being honored by the dealer;
(6) the parties' compliance with the franchise, except to the extent that the franchise conflicts with this chapter; and
(7) the enforceability of the franchise from a public policy standpoint, including issues of the reasonableness of the franchise's terms, oppression, adhesion, and the parties' relative bargaining power.
(b) The desire of a manufacturer, distributor, or representative for market penetration does not by itself constitute good cause.
Notes and commentary — not statutory text
History
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 5, eff. June 1, 2003.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/OC/htm/OC.2301.htm
- Text hash
- sha256 0bda79b86ce91ff9303a07d9991ca2f15ea6387dc37fd9240c3ee59e9fb85c9f
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
This section cites
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