Tex. Business & Commerce Code § 57.258
This is the official text of Tex. Business & Commerce Code § 57.258, part of Texas’s Business & Commerce Code — governs commercial transactions and general business practices.
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§ 57.258. ALTERNATE REIMBURSEMENT TERMS ENFORCEABLE.
Official statutory text
(a) Sections 57.253, 57.254, and 57.255 do not apply if the terms of a written dealer agreement between the parties require the supplier to compensate the dealer for warranty labor costs either as:
(1) a discount in the price of the equipment to the dealer, subject to Subsection (b); or
(2) a lump-sum payment made to the dealer not later than the 90th day after the date the supplier's new equipment is sold to the dealer, subject to Subsection (b).
(b) The discount or lump-sum payment under Subsection (a) must be or result in an amount that is not less than five percent of the suggested retail price of the equipment.
(c) The alternate reimbursement terms of a dealer agreement that comply with Subsections (a) and (b) are enforceable.
(d) This section does not affect the supplier's obligation to reimburse the dealer for parts in accordance with Section 57.255.
(1) a discount in the price of the equipment to the dealer, subject to Subsection (b); or
(2) a lump-sum payment made to the dealer not later than the 90th day after the date the supplier's new equipment is sold to the dealer, subject to Subsection (b).
(b) The discount or lump-sum payment under Subsection (a) must be or result in an amount that is not less than five percent of the suggested retail price of the equipment.
(c) The alternate reimbursement terms of a dealer agreement that comply with Subsections (a) and (b) are enforceable.
(d) This section does not affect the supplier's obligation to reimburse the dealer for parts in accordance with Section 57.255.
Status: in_force · Read it on the official government site
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