2006 New Mexico Statutes - Section 57-16-9.2 — Motor vehicle dealers; termination of franchise; return of inventory.

57-16-9.2. Motor vehicle dealers; termination of franchise; return of inventory.

A.     If on termination of a franchise the dealer delivers to the manufacturer or distributor the inventory that was purchased from the manufacturer or distributor and that is held by the dealer on the date of termination, the manufacturer or distributor shall pay to the dealer:   

(1)     the dealer cost of the new, unsold and undamaged motorcycles, current model year motor vehicles and motor vehicles purchased from the manufacturer or distributor six months prior to receipt of a notice of termination;   

(2)     an amount equal to ninety-five percent of the current price of new, unused and undamaged motorcycle attachments and motor vehicle repair parts; and   

(3)     an amount equal to an additional five percent of the current price of new, unused and undamaged motorcycle attachments and motor vehicle repair parts unless the manufacturer or distributor performs the handling, packing and loading of the parts, in which case no additional amount is required under this paragraph.   

B.     The manufacturer or distributor may subtract from the sum due under Subsection A of this section the amount of debts owed by the dealer to the manufacturer or distributor.  The manufacturer or distributor and the dealer are each responsible for one-half of the cost of delivering the inventory to the manufacturer or distributor.   

C.     The manufacturer or distributor shall pay the amount due under this section before the sixty-first day after the day that the manufacturer or distributor receives inventory from the dealer.   

D.     On payment of the amount due under this section, title to the inventory is transferred to the manufacturer or distributor.   

E.     The provisions of this section shall not apply to recreational travel trailer or motor home manufacturers or dealers.