2025 Texas Statutes
Business & Commerce Code
Title 4 - Business Opportunities and Agreements
Chapter 57 - Agricultural, Construction, Industrial, Mining, Forestry, Landscaping, and Outdoor Power Equipment Dealer Agreements
Subchapter E. Termination of Single-Line Dealer Agreements
Section 57.204. Notice of Termination; Correction of Deficiency

Universal Citation:
§ 57.204 (2025)
Learn more This media-neutral citation is based on the American Association of Law Libraries Universal Citation Guide and is not necessarily the official citation.

Sec. 57.204. NOTICE OF TERMINATION; CORRECTION OF DEFICIENCY. (a) Except as provided by Subsection (b) and Section 57.205, a supplier shall provide a dealer with at least 90 days' written notice of termination. The notice must state all reasons constituting good cause for the termination and state that the dealer has 60 days in which to cure any claimed deficiency. If the deficiency is cured within 60 days, the notice will be void.

(b) Notwithstanding Subsection (a), if the good cause reason for termination is due to the dealer's failure to meet or maintain the supplier's requirements for market penetration, a reasonable period of time has existed where the supplier has worked with the dealer to gain the desired market share.

Added by Acts 2011, 82nd Leg., R.S., Ch. 1039 (H.B. 3079), Sec. 2, eff. September 1, 2011.

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