DecisionDepot
California legal research

Texas Business & Commerce Code

§ 57.203 — GOOD CAUSE DETERMINATION

BC § 57.203Title 4. BUSINESS OPPORTUNITIES AND AGREEMENTS · Ch. 57. AGRICULTURAL, CONSTRUCTION, INDUSTRIAL, MINING, FORESTRY, LANDSCAPING, AND OUTDOOR POWER EQUIPMENT DEALER AGREEMENTS · Art. E. TERMINATION OF SINGLE-LINE DEALER AGREEMENTS

Statute text

View on source
(a)For purposes of this subchapter, "good cause" means failure by a dealer to comply with requirements imposed on the dealer by the dealer agreement if the requirements are not different from those requirements imposed on other similarly situated dealers.
(b)In addition to the good cause reason for termination stated in Subsection (a), good cause for termination of a dealer agreement exists when:
(1)there has been a closeout or sale of a substantial part of the dealer's assets related to the equipment business;
(2)there has been commencement of a dissolution or liquidation of the dealer;
(3)the dealer has changed its principal place of business or has added additional locations without the supplier's prior approval, which shall not be unreasonably withheld;
(4)the dealer has substantially defaulted under a chattel mortgage or other security agreement between the dealer and the supplier or there has been a revocation or discontinuance of a guarantee of a present or future obligation of the dealer to the supplier;

Legislative history

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

Source: Texas Business & Commerce Code § 57.203 from the Texas Constitution and Statutes (Texas Legislature) (public record). DecisionDepot is for informational use only and is not legal advice — verify against the official source before relying on this text.