The automobile industry is regulated by a variety of different codes and rules. Codes are known as "Black Letter Law". The codes are statutes or laws adopted by the Texas Legislature which meets every other year. Rules are the various regulations that are passed by the commissions and boards that regulate the automobile industry. The rules clarify the laws and address specific details concerning how the law should be administered. Rules can be changed more frequently whereas Codes and Statutes can only be changed by the Texas Legislature.

Dealers should be aware that rules carry the same weight as a code provision or legal statute.


Some of the most common laws that govern independent dealers are found in the Texas Occupations Code and Texas Transportation Code. Specific rules intended to interpret these codes can be found in the Texas Administrative Code (TAC). The TAC is indexed into several different sections called Titles, Parts, Chapters, Subchapters and then Rules. In order to get become more familiar, check out the Advertising Rules which can be found in Title 43 - Part 10 - Chapter 215 - Subchapter H and you will see all the different advertising rules that govern advertising for both new and used car sales.


Advertising Rules can be found in the Texas Administrative Code. If you want to get started in learning about the rules that are specific to the used automobile industry. The TAC is the best place to start.

Other Rules

The industry is also regulated under The Texas Finance Code, Texas Tax Code, and Deceptive Trade Practices Act. Environmental Rules can be administered and enforced by a variety of agencies such as County or Municipal Health Departments, the Texas Commission on Environmental Quality (TCEA) and Environmental Protection Agency.

Local Municipalities May Have Other Rules

Some local municipalities have specific rules related to Signage, Outdoor Display Advertising, Outdoor Lighting, Dealership Screening or Fencing and Zoning.


See the buttons on the left as they contain some of the rules specific to the used car industry.