Texas § 2301.461 LIABILITY OF FRANCHISED DEALER.

Texas Statutes

§ 2301.461 — LIABILITY OF FRANCHISED DEALER.

Texas § 2301.461

Code OCOccupations Code

This text of Texas § 2301.461 (LIABILITY OF FRANCHISED 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. § 2301.461 (2026).

Text

Sec. 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

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Sec. 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.

Legislative History

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 5, eff. June 1, 2003. Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 14A.617, eff. Sept. 1, 2003. Amended by: Acts 2013, 83rd Leg., R.S., Ch. 1135 (H.B. 2741 ), Sec. 17, eff. September 1, 2013.