Texas Business and Commerce Code 57.355 – Liability
Current as of: 2024 | Check for updates
|
Other versions
(a) A supplier who refuses to repurchase any inventory covered under this chapter after termination or discontinuation of the dealer agreement is liable to the dealer for:
(1) 110 percent of the amount that would have been due for the inventory had the supplier timely complied with the requirements of this chapter;
(2) any freight charges paid by the dealer;
(3) any accrued interest; and
(4) the actual costs of any court or arbitration proceeding incurred by the dealer, including attorney’s fees or arbitrator fees.
(b) The supplier and dealer will each pay 50 percent of the costs of freight, at truckload rates, to ship any equipment or repair parts returned to the supplier pursuant to this chapter.
Terms Used In Texas Business and Commerce Code 57.355
- Lien: A claim against real or personal property in satisfaction of a debt.
- Uniform Commercial Code: A set of statutes enacted by the various states to provide consistency among the states' commercial laws. It includes negotiable instruments, sales, stock transfers, trust and warehouse receipts, and bills of lading. Source: OCC
(c) Notwithstanding any provision to the contrary in the Uniform Commercial Code, the dealer retains title to and has a first and prior lien against all inventory returned by the dealer to the supplier under this chapter until the dealer is paid all amounts owed by the supplier under this subchapter for the repurchase of the inventory required under this chapter, and the supplier must hold the proceeds of the inventory in trust for the dealer’s benefit.