DEALER AGREEMENT
This DEALER AGREEMENT (‘’this Agreement’’) is entered into between [NAME] of address
ADDRESS and [NAME] of address ADDRESS on [DATE].
NOW, THEREFORE, in consideration of the premises, and of the mutual promises and
undertakings herein contained, the parties, intending to be legally bound, do agree as follows:
- RESPONSIBILITIES OF THE DEALER
1.1 The dealer agrees to abide by the terms of this agreement and agrees to act as an
agent of the company in respect to contracts under the program.
1.2 The dealer agrees to provide its program of extended service agreements and/or
limited warranties in connection with sales and maintenance of automobiles both new
and used. The Company is to administer such program.
1.3 Services to be provided under this agreement will be performed by and paid for by
the Dealer unless otherwise stated. The dealer rate schedule shall include both
insurance premiums and administration fee
1.4 In the event where the dealer ceases to operate the business from which it is offering
Agreements, the dealer will notify the Company in writing at least twenty (30) days
prior to such event. The dealer will make adequate provisions, whether through
assumption by a successor business or otherwise, for the performance of dealer’s
obligations under its outstanding Agreements and this Agreement.
1.5 The dealer agrees to make effort so as to ensure fairness and promote integrity in this
transaction with the company by adhering to the guidelines set forth in this
agreement.
1.6 Dealer has no authority to alter or modify the Company’s administered program or he
contract the Company may examine, during the term of this agreement and for one
(1) year after the expiration of any contract issued pursuant hereto, at all reasonable
times at the office of the dealer, the books, records, cost of parts, labor involved, and
any and all such other information of the dealer pertaining to the rendering of covered
repairs and the program hereunder.
1.7 In the event of any threat of a lawsuit in regards to the program in this contract, the
dealer shall inform the company immediately via mail on the issue. - RESPONSIBILITIES OF THE COMPANY
2.1 The Company shall authorize the dealer to provide the Company’s contracts to the
dealer’s customers in accordance with the Company’s terms. Under no circumstance
shall the company bear any responsibility for the performance of the duties of the
dealer
2.2 The Company shall administer agreements that have been completed without any
modifications of the terms whatsoever. The appropriate administrative fee should be
paid to Company within 30 days of the date the Agreement was signed by the holder.
2.3 Neither Company nor insurance carrier will have any obligation to the dealer or the
contract holder in respect to any contract until the dealer shall have timely remitted to
Company the full amount of the dealer cost as provided in this agreement.
2.4 In the event remittance funds are insufficient to satisfy the required dealer cost of any
or a combination of contracts, the Company reserves the right to withhold moneys
owed to the dealer as payment for such obligations.
2.5 The Company shall reimburse the Dealer for covered repairs based on retail labor rate
and flat rate manual and dealer’s retail cost of replacement parts like kind and quality.
Retail cost shall be manufacturer’s suggested list price.
2.6 Claims not submitted to the company within 30 days from the day of repair shall not
be paid by the Company or insurance carrier. Further, neither the Company nor the
carrier shall be liable for such claims.
2.7 The Company has the right to review the program, its rules and regulations. The
dealer shall conform to any changes made upon being given sufficient notice of 30
days.
2.8 The Company reserves the right to investigate suspected fraud, and may refer cases to
proper authorities, or take other adverse action towards propagators, including, but
not limited to, modification of reserve requirement, suspension of authority to offer
contracts, or termination of agreement - PAYMENT SCHEDULE
The payment schedule shall be contained in exhibit 1(EXH 1) titled Payment Schedule
affixed to this agreement. - AMENDMENTS
This Agreement may be modified or amended under the condition that any such
amendment is attached and authorized by the Parties. - SEVERABILITY
This Agreement shall remain in effect under the circumstance a section or provision is
unenforceable or invalid. All remaining sections and provisions shall be deemed legally
binding unless a court rules that any such provision or section is invalid or unenforceable,
thus, limiting the effect of another provision or section. In such case, the affected
provision or section shall be enforced as so limited. - TERMINATION
6.1 This agreement shall be effective on the date first written above and shall continue in
force until terminated by either party giving to the other not less than thirty (30) days
prior written notice of such termination.
6.2 Termination of this agreement shall not affect the responsibilities of either party on
contracts issued prior to the effective date of termination. This agreement shall be
automatically reviewed and considered for termination by the company. - INDEMNITY
Dealer agrees to indemnify and hold harmless the Company and company related entities
and each of their employees, officers and directors against any and all losses, claims,
damages, liabilities and expenses (including reasonable attorneys’ fees) arising out of or
based on dealer’s failure or alleged failure to comply with its obligations under the
Agreements. If any action or claim shall be brought or asserted against Company and/or a
related entity with respect to the Agreements, dealer shall assume the defense thereof,
including the employment of counsel and payment of expenses. - NOTICES
All notices pertaining to this agreement must be in writing and transmitted through the
United States Postal Service, postage prepaid to the addressee set forth by the respective
party. - GOVERNING LAWS
This Agreement shall be governed under the laws in the State of TEXAS. - DISPUTES
In the event of any disputes between the parties, the parties shall use arbitration as a way
of solving the disputes - ENTIRE AGREEMENT
This Agreement, along with any attachments or addendums, represents the entire
agreement between the parties.
In Witness Whereof, this Agreement is duly executed by the duly authorized representatives of
the parties as set forth below:
Dealer’s Signature Date
Company Official Signature Date
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