Texas Occupations Code 2352.053 – Termination or Nonrenewal of Agreement; Notice
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(a) Except as provided by Subsection (d), a manufacturer or distributor may not terminate an agreement unless the dealer defaults under Section 2352.0523 and:
(1) the manufacturer or distributor gives the dealer written notice of the default and possible termination in clear and concise terms;
(2) the notice states the default;
(3) the dealer has been given the applicable cure period to make a good faith effort to cure the default stated in the notice; and
(4) the dealer fails to cure the default.
(b) Good cause is not required for the nonrenewal of an agreement.
Terms Used In Texas Occupations Code 2352.053
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- 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
- United States: includes a department, bureau, or other agency of the United States of America. See Texas Government Code 311.005
- Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005
(c) The fact that a dealer holds an agreement involving another line, make, or brand of new boat or new boat motor does not constitute a default or grounds for termination of an agreement.
(d) A manufacturer or distributor may terminate an agreement on written notice, without a cure period, if the dealer:
(1) financially defaults to the manufacturer, the distributor, or a financing source;
(2) becomes subject to an order for relief, as that term is used in Title 11, United States Code;
(3) engages in an act of material fraud relating to the performance of a right or obligation under the agreement;
(4) is a corporation that ceases to exist;
(5) becomes insolvent or takes or fails to take any action that constitutes an admission of inability to pay debts as the debts mature;
(6) makes a general assignment for the benefit of creditors to an agent authorized to liquidate any substantial amount of assets;
(7) applies to a court for the appointment of a receiver for any assets or properties;
(8) fails to substantially comply with a federal, state, or local law, rule, regulation, ordinance, or order applicable to the agreement; or
(9) receives three valid notices of a default under Section 2352.0523 for the same default, whether cured or not, within a 12-month period.