New Texas law covers dealer-manufacturer agreements

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Texas boat dealers scored a significant legislative victory on June 17 when Gov. Rick Perry signed HB 1960, which provides dealers increased stability when contracting with boatbuilders, the Marine Retailers Association of America reported.

The law goes into effect Sept. 1 and is the result of a coordinated effort of dealers around the state who united to push for its passage.

“Texas dealers united and worked diligently on the passing of HB 1960 to protect and enhance dealers’ substantial investments in their dealerships,” Ken Lovell, president of the Boating Trades Association of Metropolitan Houston, said in a statement.

“The new dealer-manufacturer agreement legislation will strengthen partnerships between dealers and manufacturers,” he added.

The new law’s key changes cover issues such as dealer territory, warranty work, parts delivery, three-year dealer agreement terms and specification of the type of default that may lead to termination of the agreement.

“Congratulations to the boat dealers in Texas for an outstanding grassroots lobby campaign that made passage of this bill possible in only one year,” MRAA president Phil Keeter said in a statement.