(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.
Acts 2011, 82nd Leg., R.S., Ch. 1148 (H.B. 1960), Sec. 5, eff. September 1, 2011.