Section 2301.402 - Rate of Compensation(a) A manufacturer or distributor shall fairly and adequately compensate its dealers for warranty work.(b) A manufacturer or distributor may not pay or reimburse a dealer an amount of money for warranty work that is less than the amount the dealer charges a retail customer for similar nonwarranty work.(c) In computing the amount of money a dealer charges a retail customer under Subsection (b), the manufacturer or distributor shall use the greater of: (1) the average labor rate charged during the preceding six months by the dealer on 100 sequential nonwarranty repair orders, exclusive of routine maintenance; or(2) the average labor rate charged for 90 consecutive days during the preceding six months by the dealer for nonwarranty repairs, exclusive of routine maintenance.Tex. Occ. Code § 2301.402
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 5, eff. 6/1/2003.