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TITLE 43TRANSPORTATION
PART 10TEXAS DEPARTMENT OF MOTOR VEHICLES
CHAPTER 224ADJUDICATIVE PRACTICE AND PROCEDURE
SUBCHAPTER GLEMON LAW AND WARRANTY PERFORMANCE CLAIMS
RULE §224.266Compliance with Order Granting Relief

(a) Compliance with a final order will be monitored by the department.

(b) A complainant is not bound by a final order.

(c) If a complainant does not accept the final order, the proceeding before the hearings examiner will be deemed concluded and the complaint file closed.

(d) If the complainant accepts the final decision, then the manufacturer, distributor, or converter, and the dealer to the extent of the dealer's responsibility, if any, shall immediately take such action as is necessary to implement the final order.

(e) If a manufacturer, distributor, or converter replaces or repurchases a motor vehicle pursuant to a final order, then the manufacturer, distributor, or converter shall, prior to the resale of such motor vehicle, retitle the vehicle in Texas and shall:

  (1) issue a disclosure statement on a form provided by or approved by the department; and

  (2) affix a department-approved disclosure label in a conspicuous location in or on the motor vehicle.

(f) The disclosure statement and disclosure label required under subsection (e) of this section shall accompany the motor vehicle through the first retail purchase. No person holding a license or GDN issued by the department under Occupations Code, Chapter 2301 or Transportation Code, Chapter 503 shall remove or cause the removal of the disclosure label until delivery of the motor vehicle to the first retail purchaser.

(g) A manufacturer, distributor, or converter shall provide to the department the name, address, and telephone number of the transferee to whom the manufacturer, distributor, or converter transfers the motor vehicle on the disclosure statement within 60 days of a transfer. A dealer that sells the vehicle to the first retail purchaser shall return the completed disclosure statement to the department within 60 days of the sale.

(h) The manufacturer, distributor, or converter must repair the defect or condition in the motor vehicle that resulted in the vehicle being reacquired and issue a basic warranty excluding non-original equipment manufacturer items or accessories, for a minimum of 12 months or 12,000 miles, whichever comes first. The warranty shall be provided to the first retail purchaser of the motor vehicle.

(i) In the event this section conflicts with the terms contained in a cease and desist order, the terms of the cease and desist order shall prevail.

(j) The failure of any manufacturer, distributor, converter, or dealer to comply with a final order within the time period prescribed in the order may subject the manufacturer, converter, distributor, or dealer to formal action by the department, including the assessment of civil penalties of up to $10,000 per day per violation or other sanctions prescribed by Occupations Code, Chapter 2301.


Source Note: The provisions of this §224.266 adopted to be effective June 1, 2024, 49 TexReg 2771

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