Section 57.357 - Agreement Terminated By Dealer; Inapplicability of Subchapter to Certain Specialty Suppliers(a) This subchapter does not apply to a specialty agricultural equipment supplier if the dealer terminates the dealer agreement without good reason. A dealer has good reason to terminate the dealer agreement for any of the following reasons: (1) the death or disability of a majority owner of the dealership;(2) the dealership terminates the dealer agreement and: (A) substantially all of the dealership assets or all shares of stock of the dealership are sold to a new owner; and(B) no owner of the terminated dealership continues to own an interest in the continuing dealership;(3) the filing of bankruptcy by or against the dealership that has not been discharged within 30 days after the date of the filing, the appointment of a receiver, or an assignment for the benefit of creditors; or(4) the specialty agricultural equipment supplier:(A) abandons the market or withdraws from the market by no longer selling to the dealer a type of equipment previously sold to the dealer that constituted a material part of the specialty agricultural equipment sold by the supplier;(B) consistently sells products to the dealer that are defective or breach the implied warranty of merchantability;(C) consistently fails to:(i) provide adequate product support for the type and use of the product, including technical assistance, operator and repair manuals, and part lists and diagrams;(ii) provide adequate training required by the supplier for maintenance, repair, or use of the supplier's products; or(iii) provide marketing and marketing support for the supplier's product if marketing is a requirement of the dealer agreement;(D) consistently fails to meet the supplier's warranty obligations to the dealer as required by contract or law, including obligations under this chapter;(E) has engaged in conduct that is injurious or detrimental to the dealer's customers, the public welfare, or the dealer's reputation;(F) has made material misrepresentations to the dealer or has falsified a record;(G) has breached the dealer agreement; or(H) has violated this chapter.(b) This subchapter may not be construed to limit a specialty agricultural equipment supplier's obligation to repurchase a dealer's inventory as provided by this section if the supplier terminates or otherwise discontinues the dealer agreement.Tex. Bus. and Comm. Code § 57.357
Added by Acts 2011, 82nd Leg. - Regular Session, ch. 1039,Sec. 2, eff. 9/1/2011.