Overview
Texas does not have a specific statute that sets the amount or method for warranty reimbursement of labor or parts. However, Texas Law provides dealership with important protections under the Deceptive Trade Practices – Consumer Protection Act (DTPA) and the Texas Franchise Practices Act.
These laws prohibit unfair or deceptive acts and practices and require automakers to act in good faith and deal fairly with their franchised dealers.
Dealers may pursue claims under these laws if an automaker’s warranty reimbursement policies are arbitrary, unfair, or not applied in good faith.
Key Takeaways
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No statute sets minimum labor rate reimbursement.
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No statute sets parts reimbursement or markup requirements.
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DTPA prohibits unfair or deceptive acts by manufacturers.
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Texas Franchise Practices Act requires good faith dealing with franchised dealers.
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Dealers have legal recourse for arbitrary or unfair warranty reimbursement practices.
Texas Law Highlights
Labor Rate Reimbursement
No law sets a minimum labor rate for warranty reimbursement.
Parts Reimbursement
No law sets parts reimbursement or markup requirements.
Deceptive Trade Practices Act (DTPA)
Prohibits false, misleading, or deceptive acts or practices in the conduct of trade or commerce.
Texas Franchise Practices Act
Requires manufacturers to act in good faith and deal fairly with their franchised dealers.
Legal Recourse
Dealers may pursue claims for arbitrary or unfair warranty reimbursement practices under the DTPA and Franchise Act.
Related Resources
Texas Deceptive Trade Practices Act
(Tex. Bus. & Com. Code § 17.41 et seq.)
Texas Franchise Practices Act
(Tex. Bus. & Com. Code § 15.50 et seq.)
Texas Lemon Law
(Tex. Civ. Prac. & Rem. Code § 17.50 et seq.)
Texas Attorney General -
Consumer Protection