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Texas Occupations Code - OCC § 2301.402. Rate of Compensation

Current as of January 01, 2024 | Updated by Findlaw Staff

(a) A manufacturer or distributor shall fairly and adequately compensate its dealers for warranty work.

(b) A manufacturer or distributor may not pay or reimburse a dealer an amount of money for warranty work that is less than the amount the dealer charges a retail customer for similar nonwarranty work.

(c) In computing the amount of money a dealer charges a retail customer under Subsection (b), the manufacturer or distributor shall use the greater of:

(1) the average labor rate charged during the preceding six months by the dealer on 100 sequential nonwarranty repair orders, exclusive of routine maintenance;  or

(2) the average labor rate charged for 90 consecutive days during the preceding six months by the dealer for nonwarranty repairs, exclusive of routine maintenance.

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Cite this article: FindLaw.com - Texas Occupations Code - OCC § 2301.402. Rate of Compensation - last updated January 01, 2024 | https://codes.findlaw.com/tx/occupations-code/occ-sect-2301-402/

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