Texas Statutes
Subchapter B. Dealer Agreements
Section 2352.053. Termination or Nonrenewal of Agreement; Notice

Sec. 2352.053. TERMINATION OR NONRENEWAL OF AGREEMENT; NOTICE. (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.
(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.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 5, eff. June 1, 2003.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 1148 (H.B. 1960), Sec. 5, eff. September 1, 2011.