This section says the subchapter does not apply to a specialty agricultural equipment supplier if the dealer ends the dealer agreement without good reason, and it preserves the supplier’s duty to repurchase the dealer’s inventory when the agreement ends or is discontinued.
Sec. 57.357. AGREEMENT TERMINATED BY DEALER; INAPPLICABILITY OF SUBCHAPTER TO CERTAIN SPECIALTY SUPPLIERS. (a) This subchapter does not apply to a specialty agricultural equipment supplier if the dealer terminates the dealer agreement without good reason. A dealer has good reason to terminate the dealer agreement for any of the following reasons: (1) the death or disability of a majority owner of the dealership; (2) the dealership terminates the dealer agreement and: (A) substantially all of the dealership assets or all shares of stock of the dealership are sold to a new owner; and (B) no owner of the terminated dealership continues to own an interest in the continuing dealership; (3) the filing of bankruptcy by or against the dealership that has not been discharged within 30 days after the date of the filing, the appointment of a receiver, or an assignment for the benefit of creditors; or (4) the specialty agricultural equipment supplier: (A) abandons the market or withdraws from the market by no longer selling to the dealer a type of equipment previously sold to the dealer that constituted a material part of the specialty agricultural equipment sold by the supplier; (B) consistently sells products to the dealer that are defective or breach the implied warranty of merchantability; (C) consistently fails to: (i) provide adequate product support for the type and use of the product, including technical assistance, operator and repair manuals, and part lists and diagrams; (ii) provide adequate training required by the supplier for maintenance, repair, or use of the supplier's products; or (iii) provide marketing and marketing support for the supplier's product if marketing is a requirement of the dealer agreement; (D) consistently fails to meet the supplier's warranty obligations to the dealer as required by contract or law, including obligations under this chapter; (E) has engaged in conduct that is injurious or detrimental to the dealer's customers, the public welfare, or the dealer's reputation; (F) has made material misrepresentations to the dealer or has falsified a record; (G) has breached the dealer agreement; or (H) has violated this chapter. (b) This subchapter may not be construed to limit a specialty agricultural equipment supplier's obligation to repurchase a dealer's inventory as provided by this section if the supplier terminates or otherwise discontinues the dealer agreement. Added by Acts 2011, 82nd Leg., R.S., Ch. 1039 (H.B. 3079), Sec. 2, eff. September 1, 2011.