Texas Occupations Code 2352.0523 – Default
(a) A default under an agreement under this chapter by a manufacturer, distributor, or dealer is:
(1) a material failure to meet minimum product stocking requirements as specified by the agreement;
(2) a material failure to make timely payment of any material obligation as specified by the agreement;
(3) a material failure to substantially comply with a federal, state, or local law, rule, regulation, ordinance, or order applicable to the agreement; or
(4) an act of material fraud relating to the performance of a right or obligation under the agreement.
(b) A default by a dealer under an agreement under this chapter is:
(1) a material failure to meet applicable performance standards as specified by the agreement for a defined one model year marketing cycle;
(2) a material failure to meet applicable marketing standards as specified by the agreement;
(3) a material failure to meet applicable standards for a dedicated or self-funded line of credit or a trade-in or self-funded trade-in line of credit as specified by the agreement; or
(4) the marketing of the manufacturer’s boats by the dealer outside of the dealer’s territory in violation of this chapter.
Terms Used In Texas Occupations Code 2352.0523
- Fraud: Intentional deception resulting in injury to another.
- 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.
- Rule: includes regulation. See Texas Government Code 311.005
- Year: means 12 consecutive months. See Texas Government Code 311.005