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Texas Blue Law Regulates Sales, Even on the Holiday Weekend

With the July 4th holiday fast approaching, TIADA's Compliance Consultation Service has received several phone calls from dealers asking, “can I be open both Saturday, July 3rd, and Sunday, July 4th, and give my employees Tuesday off instead?” Simply put, Texas law does not allow you to sell vehicles on both of these days.

Sec. 728.002. SALE OF MOTOR VEHICLES ON CONSECUTIVE SATURDAY AND SUNDAY PROHIBITED.
(a) A person may not, on consecutive days of Saturday and Sunday:

(1) sell or offer for sale a motor vehicle;  or

  (2) compel an employee to sell or offer for sale a motor vehicle.

  (b) Each day a motor vehicle is offered for sale is a separate violation. Each sale of a motor vehicle is a separate violation.

  (c) This section does not prohibit the occasional sale of a motor vehicle by a person not in a business that includes the sale of motor vehicles.

(d) This section does not prohibit the quoting of a price for a motor home or tow truck at a show or exhibition described by 
Section 2301.358, Occupations Code.

This law makes no exemption for holiday weekends. Another variation of this question is what will happen if I open both Saturday and Sunday. The short answer is that one of your competitors will probably call and report you. If reported, Texas law provides the following penalties and “each sale of a motor vehicle is a separate violation”:  

Sec. 728.003. CIVIL PENALTY.

(a) A person who violates Section 728.002 is subject to a civil penalty of: 
  (1) not more than $500 for a first violation
 
(2) not less than $500 or more than $1,000 for a second violation; or 
  (3) not less than $1,000 or more than $5,000 for a third or subsequent violation. 

(b) On a finding by the trier of fact that a person wilfully or with conscious indifference violated Section 728.002, the court may triple the penalty due under Subsection (a).

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