TX Attorney General Opinion Watch. Manufacturers vs. Dealers.

Texas Department of Motor Vehicles has requested an Attorney General opinion as to whether a dealer that performs manufacturer warranty repair violates the Occupations Code.

Why? A manufacturer or distributor cannot act like a dealer under Texas law.

Again, why? Texas Automobile Dealer Association filed a complaint with TX DMV claiming Cummins South Plains LLC violated this separation by performing manufacturer warranty repair work on diesel engines

Where is the legislative clean up likely?  Clear up what the agency sees as a conflict between Occupations Code Chapter 2301that  lays out numerous sections where dealers’ “warranty work” rights are protected (primarily in Subchapters A- “General Provisions”, F – “License Requirements”, and I – “Warranties: Reimbursement of Dealer”)  & Subchampter M that says manufacturers are obligated by the same statute to ensure that their warranty is honored.

TX Attorney General Opinion Request 0206-KP