Sec. 2352.0523.  DEFAULT.  (a)  A default under an agreement under this chapter by a manufacturer, distributor, or dealer is:
(1)  a material failure to meet minimum product stocking requirements as specified by the agreement;
(2)  a material failure to make timely payment of any material obligation as specified by the agreement;
(3)  a material failure to substantially comply with a federal, state, or local law, rule, regulation, ordinance, or order applicable to the agreement; or
(4)  an act of material fraud relating to the performance of a right or obligation under the agreement.
(b)  A default by a dealer under an agreement under this chapter is:
(1)  a material failure to meet applicable performance standards as specified by the agreement for a defined one model year marketing cycle;
(2)  a material failure to meet applicable marketing standards as specified by the agreement;
(3)  a material failure to meet applicable standards for a dedicated or self-funded line of credit or a trade-in or self-funded trade-in line of credit as specified by the agreement; or
(4)  the marketing of the manufacturer's boats by the dealer outside of the dealer's territory in violation of this chapter.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1148 (H.B. 1960), Sec. 4, eff. September 1, 2011.