Texas Business and Commerce Code 57.258 – Alternate Reimbursement Terms Enforceable
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(a) Sections 57.253, 57.254, and 57.255 do not apply if the terms of a written dealer agreement between the parties require the supplier to compensate the dealer for warranty labor costs either as:
(1) a discount in the price of the equipment to the dealer, subject to Subsection (b); or
(2) a lump-sum payment made to the dealer not later than the 90th day after the date the supplier’s new equipment is sold to the dealer, subject to Subsection (b).
(b) The discount or lump-sum payment under Subsection (a) must be or result in an amount that is not less than five percent of the suggested retail price of the equipment.
Terms Used In Texas Business and Commerce Code 57.258
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005
(c) The alternate reimbursement terms of a dealer agreement that comply with Subsections (a) and (b) are enforceable.
(d) This section does not affect the supplier’s obligation to reimburse the dealer for parts in accordance with Section 57.255.