Texas Occupations Code 2301.461 – Liability of Franchised Dealer
(a) Notwithstanding the terms of any franchise or any other law, a franchised dealer’s preparation, delivery, and warranty obligations are the dealer’s sole responsibility for product liability as between the dealer and a manufacturer or distributor.
(b) Notwithstanding the terms of any franchise or any other law, a manufacturer or distributor shall reimburse the dealer for any loss incurred by the dealer, including legal fees, court costs, and damages, as a result of the dealer having been named a party in a product liability action, except for a loss caused by the dealer’s:
(1) failure to comply with an obligation described by Subsection (a);
(2) negligence or intentional misconduct; or
(3) modification of a product without the authorization of the manufacturer or distributor.
Terms Used In Texas Occupations Code 2301.461
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- 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.