Texas § OC.2301.402 - RATE OF COMPENSATION

Full text of Texas The Texas Constitution § OC.2301.402 — RATE OF COMPENSATION, with citation guidance and answers to common questions.

§ OC.2301.402. RATE OF COMPENSATION

RATE OF COMPENSATION. (a) A manufacturer or distributor shall fairly and adequately compensate its dealers for warranty work. (b) A manufacturer or distributor may not pay or reimburse a dealer an amount of money for warranty work that is less than the amount the dealer charges a retail customer for similar nonwarranty work. (c) In computing the amount of money a dealer charges a retail customer under Subsection (b), the manufacturer or distributor shall use the greater of: (1) the average labor rate charged during the preceding six months by the dealer on 100 sequential nonwarranty repair orders, exclusive of routine maintenance; or (2) the average labor rate charged for 90 consecutive days during the preceding six months by the dealer for nonwarranty repairs, exclusive of routine maintenance. Added by Acts 2001, 77th Leg., ch. 1421, Sec. 5, eff. June 1, 2003.

Source: official Texas text · Last verified 2026-08-27

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Frequently Asked Questions About Texas § OC.2301.402

What does The Texas Constitution § OC.2301.402 cover?

Section OC.2301.402 ("RATE OF COMPENSATION") is part of the The Texas Constitution, the codified statutory law of Texas. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.

How do I cite Texas § OC.2301.402?

A common citation format is "The Texas Constitution § OC.2301.402" (Texas). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.

Is this the official text of Texas law?

No. This page is for research and education and may not include the most recent amendments. For official current law, check the Texas official source linked on this page or consult a licensed Texas attorney.

How does Texas § OC.2301.402 apply to my situation?

Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Texas can advise on how this section applies to you. Contact your state or local bar association for a referral.

Sources & Verification

Not legal advice. Verify against the official source and consult a licensed attorney in Texas.