Sec. 2301.455. DETERMINATION OF GOOD CAUSE FOR TERMINATION, DISCONTINUANCE, MODIFICATION, OR REPLACEMENT. (a) Notwithstanding the terms of any franchise, in determining whether good cause has been established under Section 2301.453 or 2301.454, the board shall consider 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 new motor vehicles of the same line-make;
(5) whether warranties are being honored by the dealer;
(6) the parties' compliance with the franchise, except to the extent that the franchise conflicts with this chapter; and
(7) the enforceability of the franchise from a public policy standpoint, including issues of the reasonableness of the franchise's terms, oppression, adhesion, and the parties' relative bargaining power.
(b) The desire of a manufacturer, distributor, or representative for market penetration does not by itself constitute good cause.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 5, eff. June 1, 2003.
Notes of Decisions
Lee C. Ritchie v. Ann Caldwell Rupe, 443 S.W.3d 856 (Tex. 2014).
“052(4) (public officers may be removed for "oppression in office”); Tex. Occ.Code § 2301.455 (auto dealer’s franchise agreement may be terminated considering, inter alia, “oppression, adhesion, and the parties’ relative bargaining power”); Tex.”
Nissan North Am., Inc. v. Texas Dep't of Motor Vehs., 592 S.W.3d 480 (Tex. App.—Texarkana 2019).
· cites it 6× “See TEX. OCC. CODE ANN. § 2301.455(a). On the contrary, Texas cases considering “all existing circumstances” support the Board’s interpretation of the phrase in this case.”
Subaru of Am., Inc. v. Bd. of the Texas Dep't of Motor Vehs., No. 03-23-00415-CV (Tex. App.—Austin July 18, 2025).
· cites it 2× “Injury or benefit to the public We begin by considering Subaru’s issues concerning the Board’s conclusion that the third factor, the “injury or benefit to the public,” Tex. Occ. Code § 2301.455(a)(3), “weighs strongly against termination.”
Tex. Occ. Code § 2301.455(a): 1 case
Nissan North Am., Inc. v. Texas Dep't of Motor Vehs., 592 S.W.3d 480 (Tex. App.—Texarkana 2019).
“See TEX. OCC. CODE ANN. § 2301.455(a). On the contrary, Texas cases considering “all existing circumstances” support the Board’s interpretation of the phrase in this case.”
Tex. Occ. Code § 2301.455(a)(1): 1 case
Nissan North Am., Inc. v. Texas Dep't of Motor Vehs., 592 S.W.3d 480 (Tex. App.—Texarkana 2019).
“See TEX. OCC. CODE ANN. § 2301.455(a). On the contrary, Texas cases considering “all existing circumstances” support the Board’s interpretation of the phrase in this case.”
Tex. Occ. Code § 2301.455(a)(3): 1 case
Subaru of Am., Inc. v. Bd. of the Texas Dep't of Motor Vehs., No. 03-23-00415-CV (Tex. App.—Austin July 18, 2025).
“Injury or benefit to the public We begin by considering Subaru’s issues concerning the Board’s conclusion that the third factor, the “injury or benefit to the public,” Tex. Occ. Code § 2301.455(a)(3), “weighs strongly against termination.”
Tex. Occ. Code § 2301.455(a)(4): 1 case
Subaru of Am., Inc. v. Bd. of the Texas Dep't of Motor Vehs., No. 03-23-00415-CV (Tex. App.—Austin July 18, 2025).
“Injury or benefit to the public We begin by considering Subaru’s issues concerning the Board’s conclusion that the third factor, the “injury or benefit to the public,” Tex. Occ. Code § 2301.455(a)(3), “weighs strongly against termination.”
Tex. Occ. Code § 2301.455(a)(6): 1 case
Nissan North Am., Inc. v. Texas Dep't of Motor Vehs., 592 S.W.3d 480 (Tex. App.—Texarkana 2019).
“See TEX. OCC. CODE ANN. § 2301.455(a). On the contrary, Texas cases considering “all existing circumstances” support the Board’s interpretation of the phrase in this case.”
Tex. Occ. Code § 2301.455(b): 1 case
Nissan North Am., Inc. v. Texas Dep't of Motor Vehs., 592 S.W.3d 480 (Tex. App.—Texarkana 2019).
“See TEX. OCC. CODE ANN. § 2301.455(a). On the contrary, Texas cases considering “all existing circumstances” support the Board’s interpretation of the phrase in this case.”
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