78R7624 SMH-D
By: McReynolds H.B. No. 2943
A BILL TO BE ENTITLED
AN ACT
relating to agreements between suppliers of and dealers in forestry
harvesting and certain other equipment.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 19, Business & Commerce
Code, is amended by adding Section 19.025 to read as follows:
Sec. 19.025. ACTIONS AGAINST DEALERS. (a) Notwithstanding
the terms of any dealer agreement or any other law, an action or
proceeding brought by a supplier against a dealer must be brought in
an appropriate forum in this state only, and the law of this state
applies to the action or proceeding.
(b) Each party to a dealer agreement owes to the other party
a duty of good faith and fair dealing that is actionable in court.
SECTION 2. Section 19.41, Business & Commerce Code, is
amended to read as follows:
Sec. 19.41. GOOD CAUSE REQUIRED. (a) Notwithstanding the
terms of the dealer agreement, a [A] supplier may not terminate,
cancel, or fail to renew a dealer agreement without good cause.
Whether good cause has been established is determined considering
all existing circumstances, including:
(1) the dealer's sales in relation to the sales in the
market;
(2) the dealer's investment and obligations;
(3) injury or benefit to the public;
(4) the adequacy of the dealer's service facilities,
equipment, parts, and personnel in relation to those of other
dealers of equipment of the same line;
(5) whether warranties are being honored by the
dealer;
(6) the parties' compliance with the dealer agreement,
except to the extent that the dealer agreement conflicts with this
chapter; and
(7) the enforceability of the dealer agreement from a
public policy standpoint, including issues of the reasonableness of
the dealer agreement's terms, oppression, adhesion, and the
parties' relative bargaining power.
(b) The desire of a supplier for market penetration does not
by itself constitute good cause.
SECTION 3. (a) This Act takes effect immediately if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, this Act takes effect September 1, 2003.
(b) This Act applies to a dealer agreement entered into
before, on, or after the effective date of this Act.