Texas Business & Commerce Code

§ 57.154 — GOOD CAUSE DETERMINATION

BC § 57.154Title 4. BUSINESS OPPORTUNITIES AND AGREEMENTS · Ch. 57. AGRICULTURAL, CONSTRUCTION, INDUSTRIAL, MINING, FORESTRY, LANDSCAPING, AND OUTDOOR POWER EQUIPMENT DEALER AGREEMENTS · Art. D. TERMINATION OF AGREEMENTS OTHER THAN SINGLE-LINE DEALER AGREEMENTS

Statute text

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(a)Except as specifically provided otherwise by this chapter, good cause for termination of a dealer agreement exists for purposes of this subchapter if:

(1)the dealer fails to substantially comply with essential and reasonable requirements imposed on the dealer under the terms of the dealer agreement, provided that such requirements are not different from requirements imposed on other similarly situated dealers either by their terms or by the manner in which they are enforced;

(2)the dealer or dealership has transferred a controlling ownership interest in its business without the supplier's consent;

(3)the dealer has filed a voluntary petition in bankruptcy or an involuntary petition in bankruptcy has been filed against the dealer and has not been discharged earlier than the 31st day after the date the petition was filed;

(4)there has been a sale or other closeout of a substantial part of the dealer's assets related to the business;

(5)there has been commencement of an action or proceeding for the dissolution or liquidation of the dealership;

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Legislative history

Added by Acts 2011, 82nd Leg., R.S., Ch. 1039 (H.B. 3079), Sec. 2, eff. September 1, 2011.