Texas § 2301.405 CHARGE BACK TO DEALER.

Texas Statutes

§ 2301.405 — CHARGE BACK TO DEALER.

Texas § 2301.405

Code OCOccupations Code

This text of Texas § 2301.405 (CHARGE BACK TO DEALER.) is published on Counsel Stack Legal Research, covering Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Tex. Occupations Code Code Ann. § 2301.405 (2026).

Text

Sec. 2301.405. CHARGE BACK TO DEALER.

(a)A manufacturer or distributor may not charge back to a dealer money paid by the manufacturer or distributor to satisfy a claim approved and paid under this subchapter unless the manufacturer or distributor shows that:

(1)the claim was false or fraudulent;

(2)repair work was not properly performed or was unnecessary to correct a defective condition; or

(3)the dealer who made the claim failed to substantiate the claim as provided by the manufacturer's or distributor's requirements that were enforceable under Section 2301.401 at the time the claim was filed.

(b)A manufacturer or distributor may not audit a claim filed under this subchapter after the first anniversary of the date the claim is submitted unless the manufacturer or distributor has rea

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Sec. 2301.405. CHARGE BACK TO DEALER. (a) A manufacturer or distributor may not charge back to a dealer money paid by the manufacturer or distributor to satisfy a claim approved and paid under this subchapter unless the manufacturer or distributor shows that:
(1) the claim was false or fraudulent;
(2) repair work was not properly performed or was unnecessary to correct a defective condition; or
(3) the dealer who made the claim failed to substantiate the claim as provided by the manufacturer's or distributor's requirements that were enforceable under Section 2301.401 at the time the claim was filed.
(b) A manufacturer or distributor may not audit a claim filed under this subchapter after the first anniversary of the date the claim is submitted unless the manufacturer or distributor has reasonable grounds to suspect that the claim was fraudulent.