Terms Used In Texas Occupations Code 2301.353

  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.

A franchised dealer may not fail to perform an obligation placed on:
(1) the selling dealer in connection with the preparation and delivery of a new motor vehicle for retail sale as provided in the manufacturer’s preparation and delivery agreements that are applicable to the vehicle; or
(2) the dealer in connection with the manufacturer’s warranty agreements.