Texas Statutes
Subchapter I. Warranties: Reimbursement of Dealer
Section 2301.405. Charge Back to Dealer

Sec. 2301.405. CHARGE BACK TO DEALER. (a) A manufacturer or distributor may not charge back to a dealer money paid by the manufacturer or distributor to satisfy a claim approved and paid under this subchapter unless the manufacturer or distributor shows that:
(1) the claim was false or fraudulent;
(2) repair work was not properly performed or was unnecessary to correct a defective condition; or
(3) the dealer who made the claim failed to substantiate the claim as provided by the manufacturer's or distributor's requirements that were enforceable under Section 2301.401 at the time the claim was filed.
(b) A manufacturer or distributor may not audit a claim filed under this subchapter after the first anniversary of the date the claim is submitted unless the manufacturer or distributor has reasonable grounds to suspect that the claim was fraudulent.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 5, eff. June 1, 2003.

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