2021 Texas Statutes
Occupations Code
Title 14 - Regulation of Motor Vehicles and Transportation
Subtitle A - Regulations Related to Motor Vehicles
Chapter 2301 - Sale or Lease of Motor Vehicles
Subchapter J. Manufacturers, Distributors, and Representatives
Section 2301.462. Succession Following Death of Franchised Dealer
Sec. 2301.462. SUCCESSION FOLLOWING DEATH OF FRANCHISED DEALER. (a) Notwithstanding the terms of any franchise, except as provided by Subsection (b), a manufacturer, distributor, or representative shall honor the succession to a dealership by a legal heir or devisee under:
(1) the will of a franchised dealer; or
(2) the laws of descent and distribution of this state.
(b) Notwithstanding the terms of any franchise, a manufacturer, distributor, or representative may refuse to honor a succession if, after notice and hearing, it is shown to the board that the result of the succession will be detrimental to the public interest and to the representation of the manufacturer or distributor.
(c) This section does not prevent a franchised dealer, during the dealer's lifetime, from designating any person as a successor dealer by a written instrument filed with the manufacturer or distributor.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 5, eff. June 1, 2003. Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 14A.618, eff. Sept. 1, 2003.
