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New Mexico Equipment Buy-Back Statutes
This
act [57-23-1 to 57-23-8 NMSA 1978] may be cited as the "Franchise Termination
Act".
History:
Laws
1985, ch. 229, § 1.
57-23-2.
Definitions
As
used in the Franchise Termination Act [57-23-1 to 57-23-8 NMSA 1978]:
A.
"current price" means an amount equal to the price listed in the supplier's
printed price list in effect when the franchise is terminated, less applicable trade and
cash discounts;
B.
"dealer cost" means an amount equal to the sum of the original invoice price
that the dealer paid for inventory and the cost to the dealer of its delivery from the
supplier to the dealer, less applicable discounts;
C.
"dealer" means a person in the business of the retail sale of farm tractors,
farm implements or the attachments to or repair parts for farm tractors or farm
implements;
D.
"franchise" means a written or oral contract or agreement between a supplier and
a dealer, that may be called a "dealership" or by any other name, by which the
dealer is authorized to engage in the business of the retail sale of inventory according
to the methods and procedures prescribed by the supplier;
E.
"inventory" means new or unused farm tractors, farm implements, utility
tractors, industrial tractors, attachments and repair parts that are provided by a
supplier to a dealer under a franchise agreement and that were purchased within thirty-six
months of the termination of the franchise or were listed in the supplier's current sales
manual at the time of termination; and
F.
"supplier" means a manufacturer, wholesaler or distributor of farm tractors,
farm implements, utility tractors or industrial tractors or the attachments to or repair
parts for that equipment.
History: Laws 1985, ch. 229, § 2.
57-23-3.
Termination of franchise; return of inventory
A.
If on termination of a franchise, the dealer delivers to the supplier the inventory
that was purchased from the supplier and that is held by the dealer on the date of
termination, the supplier shall pay to the dealer:
(1)
the dealer cost of the new, unsold, undamaged and complete farm tractors, farm implements,
utility tractors, industrial tractors and attachments returned by the dealer;
(2)
an amount equal to ninety percent of the current price of new, undamaged repair parts
returned by the dealer; and
(3)
an amount equal to an additional five percent of the current price of new, undamaged
repair parts returned by the dealer, unless the supplier performs the handling, packing
and loading of the parts, in which case no additional amount is required under this
paragraph.
B.
The supplier may subtract from the sum due under Subsection A of this section the
amount of debts owed by the dealer to the supplier. The supplier and dealer are each
responsible for one-half of the cost of delivering the inventory to the supplier.
C.
The supplier shall pay the amount due under this section before the sixty-first day
after the day that the supplier receives inventory from the dealer and after the dealer
has furnished proof that the inventory was purchased from the supplier.
D.
On payment of the amount due under this section, title to the inventory is
transferred to the supplier.
History: Laws
1985, ch. 229, § 3.
57-23-4.
Exceptions.
A
supplier is not required to repurchase:
A.
inventory:
(1)
that the dealer orders after the dealer receives notice of the termination of the
franchise from the supplier; or
(2)
for which the dealer cannot furnish evidence of clear title that is satisfactory to the
supplier; or
B.
a repair part that:
(1)
has a limited storage life;
(2)
is in a broken or damaged package;
(3)
is usually sold as part of a set, if the part is separated from the set; or
(4)
cannot be sold without reconditioning or repackaging
History: Laws
1985, ch. 229, § 4
57-23-5. Warranty claim.
If
after the termination of a franchise, the dealer submits a warranty claim to the supplier
for work performed prior to the effective date of the termination, the supplier shall
accept or reject the claim not later than the forty-fifth day after the day that the
supplier receives the claim. A claim not rejected before the deadline shall be deemed
accepted. The supplier shall pay an accepted claim not later than the sixtieth day after
the day that the supplier receives the claim.
History: Laws
1985, ch. 229, § 5.
57-23-6.
Late payment.
If
a supplier does not make the payment required by the Franchise Termination Act [57-23-1
to
57-23-8
NMSA 1978] before the sixty-first day after the day that the supplier received the final
shipment of the inventory from the dealer, the supplier shall be liable to the dealer for:
A.
the greater of the dealer cost or current price of the inventory;
B.
the expenses incurred by the dealer in returning the inventory to the supplier;
C.
interest on the greater of the dealer cost or current price of the inventory, at the rate
applicable to a judgment of a court of this state, for the period beginning on the
sixty-first day after the day the supplier received the inventory;
D.
reasonable attorney's fees; and
E.
costs.
History: Laws
1985, ch. 229, § 6.
57-23-7. Security interest.
The
Franchise Termination Act [57-23-1
to
57-23-8
NMSA 1978] does not affect a supplier's security interest in inventory.
History: Laws
1985, ch. 229, § 7.
57-23-8.
Application of bulk transfer law.
The
provisions of the Uniform Commercial Code - Bulk Transfers [Chapter
55, Article 6 NMSA 1978] do not apply to a transaction between a supplier and dealer
that is required by the Franchise Termination Act [57-23-1
to
57-23-8
NMSA 1978].
History: Laws
1985, ch. 229, § 8.
For more information, contact Jeff Flora.
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