(a) Unless a person holds a license issued under this chapter authorizing the activity, the person may not:
(1) engage in business as, serve in the capacity of, or act as a dealer, manufacturer, distributor, converter, vehicle lessor, or vehicle lease facilitator in this state; or
(2) perform or offer to perform repair services on a motor vehicle under a franchise and a motor vehicle manufacturer’s warranty, regardless of whether the person sells or offers to sell motor vehicles at the same location.
(b) A franchised dealer must have both a franchised motor vehicle dealer’s general distinguishing number issued under Chapter 503, Transportation Code, and a license issued under this chapter.

Ask a traffic law question, get an answer ASAP!
Thousands of highly rated, verified traffic lawyers.
Parking violations, accidents, DUI/DWI, licensing, registration, and more
Protect your vehicle and your rights with expert legal help now
Click here to chat with a lawyer about your rights.

Terms Used In Texas Occupations Code 2301.251

  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005

(c) A manufacturer or distributor that directly or indirectly reimburses another person to perform warranty repair services on a vehicle is engaged in business in this state regardless of whether the manufacturer sells or offers for sale new motor vehicles in this state.