Texas Codes

Tex. Occ. Code § 2301.478 (2026)

Action On Franchise

✓ current as of May 2026
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Sec. 2301.478. ACTION ON FRANCHISE. (a) Notwithstanding the terms of any franchise or any other law, an action or proceeding brought by a manufacturer, representative, converter, or distributor against a dealer must be brought in an appropriate forum in this state only, and the law of this state applies to the action or proceeding.

(b) Each party to a franchise owes to the other party a duty of good faith and fair dealing that is actionable in tort.

Added by Acts 2001, 77th Leg., ch. 1421, Sec. 5, eff. June 1, 2003.

Notes of Decisions
Cited in 12 cases (3 in the last 5 years), 2004–2023 · leading case: Buddy Gregg Motor Homes, Inc. v. Motor Veh. Bd. of the Texas Dep't of Transp., 179 S.W.3d 589 (Tex. App. 2005).
Buddy Gregg Motor Homes, Inc. v. Motor Veh. Bd. of the Texas Dep't of Transp., 179 S.W.3d 589 (Tex. App. 2005). · cites it 3× “at 224 ; see also Tex. Occ.Code Ann. §§ 2301.478, .805 (West 2004).”
Mercedes-Benz United States, LLC v. Carduco, Inc., 562 S.W.3d 451 (Tex. App. 2016). · cites it 2× “"); see also TEX. OCC.CODE ANN. § 2301.478 (West, Westlaw through 2015 R.”
Bray v. Tejas Toyota, Inc., 363 S.W.3d 777 (Tex. App. 2012). “” Tex. Occ.Code Ann. § 2301.478 (West 2009).”
United Teacher Assocs. Ins. v. Union Labor Life Ins., 311 F. Supp. 2d 587 (W.D. Tex. 2004). “See Tex. Occ.Code Ann. § 2301.478 (West 2004).”
New World Car Nissan, Inc., D/B/A World Car Hyundai, & New World Car Imports, San Antonio, Inc., D/B/A World Car Hyundai v. Hyundai Motor Am. & Texas Dep't of Motor Vehs. (Tex. App. 2022). · cites it 2× “” TEX.OCC.CODE ANN. § 2301.478(b). New World Car specifically alleges HMA violated its duty of good faith and fair dealing because it did not act fairly or in good faith with New World Car in allocating vehicle inventory and in imposing sales requirements.”
Star Houston, Inc.// Cross-Appellant,Volvo Cars of North Am., LLC N/K/A Volvo Car USA, LLC v. Volvo Cars of North Am., LLC N/K/A Volvo Car USA, LLC, & Bd. of the Texas Dep't of Motor Vehs.// Star Houston, Inc., & Bd. of the Texas Dep't of Motor Vehs. (Tex. App. 2023). “See Tex. Occ. Code § 2301.478(b). “Determining whether a party acts in good faith entails an equitable evaluation of the behaviors in question.”
Richard Poe, II v. FCA US, LLC (6th Cir. 2023). “See Tex. Occ. Code § 2301.478(b). But the Texas Motor Vehicle Board has “exclusive original jurisdiction” over “claims and issues the Code governs.”
— Tex. Occ. Code § 2301.478(b) — 5 cases
Buddy Gregg Motor Homes, Inc. v. Motor Veh. Bd. of the Texas Dep't of Transp., 179 S.W.3d 589 (Tex. App. 2005). “at 224 ; see also Tex. Occ.Code Ann. §§ 2301.478, .805 (West 2004).”
New World Car Nissan, Inc., D/B/A World Car Hyundai, & New World Car Imports, San Antonio, Inc., D/B/A World Car Hyundai v. Hyundai Motor Am. & Texas Dep't of Motor Vehs. (Tex. App. 2022). “” TEX.OCC.CODE ANN. § 2301.478(b). New World Car specifically alleges HMA violated its duty of good faith and fair dealing because it did not act fairly or in good faith with New World Car in allocating vehicle inventory and in imposing sales requirements.”
Star Houston, Inc.// Cross-Appellant,Volvo Cars of North Am., LLC N/K/A Volvo Car USA, LLC v. Volvo Cars of North Am., LLC N/K/A Volvo Car USA, LLC, & Bd. of the Texas Dep't of Motor Vehs.// Star Houston, Inc., & Bd. of the Texas Dep't of Motor Vehs. (Tex. App. 2023). “See Tex. Occ. Code § 2301.478(b). “Determining whether a party acts in good faith entails an equitable evaluation of the behaviors in question.”
Richard Poe, II v. FCA US, LLC (6th Cir. 2023). “See Tex. Occ. Code § 2301.478(b). But the Texas Motor Vehicle Board has “exclusive original jurisdiction” over “claims and issues the Code governs.”
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