Sec. 2301.461. LIABILITY OF FRANCHISED DEALER. (a) Notwithstanding the terms of any franchise or any other law, a franchised dealer's preparation, delivery, and warranty obligations are the dealer's sole responsibility for product liability as between the dealer and a manufacturer or distributor.
(b) Notwithstanding the terms of any franchise or any other law, a manufacturer or distributor shall reimburse the dealer for any loss incurred by the dealer, including legal fees, court costs, and damages, as a result of the dealer having been named a party in a product liability action, except for a loss caused by the dealer's:
(1) failure to comply with an obligation described by Subsection (a);
(2) negligence or intentional misconduct; or
(3) modification of a product without the authorization of the manufacturer or distributor.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 5, eff. June 1, 2003. Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 14A.617, eff. Sept. 1, 2003.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 1135 (H.B. 2741), Sec. 17, eff. September 1, 2013.
Structure Texas Statutes
Title 14 - Regulation of Motor Vehicles and Transportation
Subtitle A - Regulations Related to Motor Vehicles
Chapter 2301 - Sale or Lease of Motor Vehicles
Subchapter J. Manufacturers, Distributors, and Representatives
Section 2301.451. Prohibition: Items Not Ordered
Section 2301.452. Delivery of Motor Vehicle or Part
Section 2301.453. Termination or Discontinuance of Franchise
Section 2301.454. Modification or Replacement of Franchise
Section 2301.456. Use of Advertising
Section 2301.457. Prohibition: Change of Franchised Dealer's Capital Structure
Section 2301.458. Prohibition: Change in Dealer Ownership
Section 2301.459. Prohibition: Use of Promissory Note, Security Agreement, or Insurance Policy
Section 2301.460. Warranty, Preparation, or Delivery Agreement Obligations
Section 2301.461. Liability of Franchised Dealer
Section 2301.462. Succession Following Death of Franchised Dealer
Section 2301.463. Prohibition: Payment of Rebate by Franchised Dealer
Section 2301.464. Relocation of Franchise
Section 2301.465. Payment to Franchised Dealer Following Termination of Franchise
Section 2301.4651. Additional Payment to Franchised Dealer in Certain Situations
Section 2301.468. Inequitable Treatment of Dealers or Franchisees
Section 2301.469. Costs of Product Recall
Section 2301.470. Prohibition: Conditions for Financing Motor Vehicle
Section 2301.471. Use of Financing Subsidiary
Section 2301.472. Addition of Line-Make
Section 2301.473. Models Within Line-Make
Section 2301.474. Payment of Costs for Administrative or Civil Proceeding
Section 2301.4749. Manufacturer or Distributor Incentive Programs: Payment to Dealer
Section 2301.475. Manufacturer or Distributor Incentive Programs: Audit or Chargeback
Section 2301.476. Manufacturer or Distributor Ownership, Operation, or Control of Dealership
Section 2301.477. Manufacturer Doing Business in This State
Section 2301.478. Action on Franchise
Section 2301.479. Adverse Action in Connection With Export of Vehicle
Section 2301.480. Disclosure of Certain Information
Section 2301.481. Property Use Agreement