(1) the dealer's territory and dealership locations;
(2) the length of the agreement, which must be not less than three years;
(3) performance standards or marketing standards, if any;
(4) working capital, inventory, facility, equipment, or tool standards, including
mutually agreed minimum product stocking requirements, if any;
(5) provisions for termination or nonrenewal of the agreement and the designation
of a successor dealer in the event of the dealer's death or disability;
(6) the obligations of the manufacturer, distributor, and dealer in the preparation
and delivery of and warranty service on new boats and new boat motors;
(7) the obligations of the manufacturer, distributor, and dealer on termination of
the agreement, including inventory of new boats and new boat motors, parts inventory,
equipment, furnishings, special tools, and required signs;
(8) mutually agreed standards for maintenance of:
(A) a dedicated or self-funded line of credit, if any; and
(B) a trade-in line of credit or self-funded trade-in line of credit, if any; and
(9) dispute resolution procedures.
(b) At the end of the first year of an agreement, a dealer and manufacturer shall
evaluate the dealer's progress in meeting the agreement's performance standards, marketing
standards, and line of credit standards, to determine whether to enter into a new
(c) If the dealer and manufacturer enter into a new agreement, the initial agreement
is void. If the dealer and manufacturer do not enter into a new agreement, the dealer and
manufacturer are bound by the terms and conditions of the initial agreement.
(d) Notwithstanding the terms of a dealer agreement, a dealer agreement and any transaction
subject to this chapter must comply with the requirements of this chapter.
(e) Notwithstanding Subsection (a)(2), an initial agreement between a dealer and a
manufacturer may have a term of less than three years. An extension or renewal of the initial agreement or a subsequent agreement under
this chapter between the same dealer and manufacturer must be for a term of not less
than three years.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
Was this helpful?
Welcome to FindLaw's Cases & Codes
A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw's Learn About the Law.