57-16A-1.
Short title.
This act [57-16A-1 to 57-16A-9 NMSA 1978] may be cited as the "Motor
Vehicle Quality Assurance Act".
History: Laws 1985,
ch. 220,
¤ 1.
57-16A-2
Definitions (Effective January 1, 2004.).
As used in the Motor Vehicle Quality Assurance Act [57-16A-1 to 57-16A-9
NMSA 1978]:
A. "collateral charges"
means additional charges to a consumer not directly attributed to a
manufacturer's suggested retail price label for a new motor vehicle and
includes all taxes, license, title and registration fees and other
governmental charges related to the purchase of the vehicle;
B. "comparable motor
vehicle" means an identical or reasonably equivalent motor vehicle;
C. "consumer"
means the purchaser, other than for purposes of resale, of a new or used
motor vehicle normally used for personal, family or household purposes, a
person to whom such a motor vehicle has been transferred during the
duration of an express warranty applicable to the motor vehicle and any
other person entitled by the terms of the warranty to enforce the
obligations of the warranty;
D. "express warranty"
means a written affirmation of the fact of promise made by a manufacturer
to a consumer in connection with the sale of a new or used motor vehicle
that relates to the nature of the material or workmanship or to a
specified level of performance over a specified period of time, including
any terms or conditions precedent to the enforcement of obligations
pursuant to the warranty;
E. "manufacturer"
means a person engaged in the manufacturing, assembling, importing or
distributing of a motor vehicle as a regular business
F. "motor vehicle"
means a passenger motor vehicle, including an automobile, pickup truck,
motorcycle or van normally used for personal, family or household
purposes, that is sold and registered in this state and whose gross
vehicle weight is less than ten thousand pounds.
G. "used motor
vehicle" means a motor vehicle that has been sold, bargained or
exchanged or a motor vehicle that is the subject of a title that has been
transferred from the person who first acquired the motor vehicle from the
manufacturer, importer or dealer or agent of the manufacturer or importer
and that has been placed in bona fide consumer use; and
H. "used motor vehicle
dealer" means a person or business that sells or offers for sale a
used motor vehicle after selling or offering for sale four or more used
motor vehicles in the previous twelve months but does not include:
(1) a bank or financial institution;
(2) an insurance company;
(3) a business selling a used motor vehicle
to an employee of the business; or
(4) a lessor selling a leased vehicle to the
lessee of the vehicle or to an employee of the lessee of the vehicle.
History: Laws 1985,
ch. 220,
¤ 2.
57-16A-3
Conformation to express warranties
A. If a new motor vehicle does not conform to
all applicable express warranties and the consumer reports the
nonconformity to the manufacturer, its agent or its authorized dealer
during the term of such express warranties or during the period of one
year following the date of original delivery of the motor vehicle to a
consumer, whichever is the earlier date, the manufacturer, its agent or
its authorized dealer shall make such repairs as are necessary to conform
the vehicle to such express warranties.
B. If the manufacturer or its agent or
authorized dealer, after a reasonable number of attempts, is unable to
conform the new motor vehicle to any applicable express warranty by
repairing or correcting any defect or condition which substantially
impairs the use and market value of the motor vehicle to the consumer, the
manufacturer shall replace the motor vehicle with a comparable motor
vehicle or accept return of the vehicle from the consumer and refund to
the consumer the full purchase price including all collateral charges,
less a reasonable allowance for the consumer's use of the vehicle. The
subtraction of a reasonable allowance for use shall apply when either a
replacement or refund of the new motor vehicle occurs. As used in this
subsection, a reasonable allowance for use shall be that amount directly
attributable to use by the consumer prior to his first report of the
nonconformity to the manufacturer, agent or dealer and during any
subsequent period when the vehicle is not out of service by reason of
repair. Refunds shall be made to consumers or lienholders as their
interests may appear.
C. It shall be presumed that a reasonable
number of attempts as mentioned in Subsection B of this section have been
undertaken to conform a new motor vehicle to the applicable express
warranties if:
(1) the same uncorrected nonconformity has
been subject to repair four or more times by the manufacturer or its
agents or authorized dealers within the express warranty term or during
the period of one year following the date of original delivery of the
motor vehicle to a consumer, whichever is the earlier date, but the
nonconformity continues to exist; or
(2) the vehicle is in the possession of the
manufacturer, its agent or authorized dealer for repair a cumulative total
of thirty or more business days during such term or during such period
whichever is the earlier date, exclusive of down time for routine
maintenance as prescribed by the manufacturer. The term of an express
warranty, such one-year period and such thirty-day period shall be
extended by any period of time during which repair services are not
available to the consumer because of war, invasion, strike, fire, flood or
other natural disaster. In no event shall the presumption herein provided
apply against a manufacturer unless the manufacturer has received prior
direct written notification from or on behalf of the consumer and an
opportunity to cure the defect alleged. The manufacturer shall provide
written notice and instruction to the consumer, either in the warranty or
a separate notice, of the obligation to file this written notification
before invoking the remedies available pursuant to the Motor Vehicle
Quality Assurance Act [57-16A-1 to 57-16A-9 NMSA 1978].
History: Laws 1985,
ch. 220,
¤ 3.
57-16A-3.1 Used motor vehicles. (Effective January 1,
2004.)
A. Unless a seller is a used motor vehicle
dealer, before the seller attempts to sell a used motor vehicle, the
seller shall possess the title to the used motor vehicle and the title
shall be in the seller's name.
B. Except as otherwise provided in the Motor
Vehicle Quality Assurance Act [57-16A-1 to 57-16A-9 NMSA 1978], a used
motor vehicle dealer shall not exclude, modify or disclaim the implied
warranty of merchantability prescribed in Section 55-2-314 NMSA 1978 or
limit the remedies for a breach of the warranty before midnight of the
fifteenth calendar day after delivery of a used motor vehicle or until a
used motor vehicle is driven five hundred miles after delivery, whichever
is earlier. In calculating time under this subsection, a day on which the
warranty is breached and all subsequent days in which the used motor
vehicle fails to conform with the implied warranty of merchantability are
excluded. In calculating distance under this subsection, the miles driven
to obtain or in connection with the repair, servicing or testing of the
used motor vehicle that fails to conform with the implied warranty of
merchantability are excluded. An attempt to exclude, modify or disclaim
the implied warranty of merchantability or to limit the remedies for a
breach of the warranty in violation of this subsection renders a purchase
agreement voidable at the option of the purchaser.
C. An implied warranty of merchantability is
met if a used motor vehicle functions substantially free of a defect that
significantly limits the use of the used motor vehicle for the ordinary
purpose of transportation on any public highway. The implied warranty of
merchantability expires at midnight of the fifteenth calendar day after
delivery of a used motor vehicle or until a used motor vehicle is driven
five hundred miles after delivery, whichever is earlier. In calculating
time, a day on which the implied warranty of merchantability is breached
is excluded and all subsequent days in which the used motor vehicle fails
to conform with the warranty are also excluded. In calculating distance,
the miles driven to obtain or in connection with the repair, servicing or
testing of the used motor vehicle that fails to conform with the implied
warranty of merchantability are excluded.
D. An implied warranty of merchantability
does not extend to damage that occurs after the sale of the used motor
vehicle that results from:
(1) off-road use;
(2) racing;
(3) towing;
(4) abuse;
(5) misuse;
(6) neglect;
(7) failure to perform regular maintenance;
and
(8) failure to maintain adequate oil, coolant
and other required fluids or lubricants.
E. If the implied warranty of merchantability
described in this section is breached, the consumer shall give reasonable
notice to the seller within thirty days of the date of the breach. Before
the consumer exercises another remedy pursuant to Chapter 55, Article 2
NMSA 1978, the seller shall have a reasonable opportunity to repair the
used motor vehicle. The consumer shall pay one-half of the cost of the
first two repairs necessary to bring the used motor vehicle into
compliance with the warranty. The payments by the consumer are limited to
a maximum payment of twenty-five dollars ($25.00) for each repair.
F. The maximum liability of a seller pursuant
to this section is limited to the purchase price paid for the used motor
vehicle, to be refunded to the consumer or lender, as applicable, in
exchange for return of the vehicle, unless the seller knew or should have
known of the defect given the circumstances in which the vehicle was
acquired or sold and the seller did not disclose that defect.
G. An agreement for the sale of a used motor
vehicle by a used motor vehicle dealer is voidable at the option of the
consumer unless it contains on its face the following conspicuous
statement printed in boldface, ten-point or larger type set off from the
body of the agreement:
"New Mexico law requires that this vehicle will be fit for the ordinary
purposes for which the vehicle is used for fifteen days or five hundred
miles after delivery, whichever is earlier, except with regard to
particular defects disclosed on the first page of this agreement. You (the
consumer) will have to pay up to twenty-five dollars ($25.00) for each of
the first two repairs if the warranty is violated.".
H. The inclusion in the agreement of the
statement prescribed in Subsection G of this section does not create an
express warranty.
I. A consumer of a used motor vehicle may
waive the implied warranty of merchantability only for a particular defect
in the vehicle and only if all of the following conditions are satisfied:
(1) the used motor vehicle dealer fully and
accurately discloses to the consumer that because of circumstances unusual
to the business of the used motor vehicle dealer, the used motor vehicle
has a particular defect;
(2) the consumer agrees to buy the used motor
vehicle after disclosure of the defect; and
(3) before the sale, the consumer indicates
agreement to the waiver by signing and dating the following conspicuous
statement that is printed on the first page of the sales agreement in
boldface ten-point or larger type and that is written in the language in
which the presentation was made:
"Attention consumer: sign here only if the dealer has told you that this
vehicle has the following problem(s) and you agree to buy the vehicle on
those terms:
1. ________________________________________________
2. ________________________________________________
3. ________________________________________________
J. A used motor vehicle dealer has the burden
to prove by a preponderance of the evidence that the dealer complied with
Subsection I of this section.
K. A consumer or seller that is aggrieved by
a transaction pursuant to this section and that seeks a legal remedy shall
pursue an appropriate remedy prescribed in Chapter 55, Article 2 NMSA 1978
and shall comply with the requirements prescribed in that article.
57-16A-4
Affirmative defenses
It shall be an affirmative defense to any claim under the Motor Vehicle
Quality Assurance Act [57-16A-1 to 57-16A-9 NMSA 1978] that:
A. an alleged nonconformity does not
substantially impair the use and market value of the motor vehicle;
B. a nonconformity is the result of abuse,
neglect or unauthorized modifications or alterations of the motor vehicle;
C. a claim by a consumer was not filed in
good faith; or
D. any other affirmative defense allowed by
law.
History: Laws 1985,
ch. 220,
¤ 4.
57-16A-5
Limitation of remedy
Any consumer who seeks enforcement of the provisions of the Motor Vehicle
Quality Assurance Act [57-16A-1 to 57-16A-9 NMSA 1978] shall be foreclosed
from pursuing any Uniform Commercial Code remedy set forth in Sections
55-2-602 through 55-2-608 NMSA 1978.
History: Laws 1985,
ch. 220,
¤ 5.
57-16A-6
Informal dispute resolution
If a manufacturer has established or participates in a fair and impartial
informal dispute settlement procedure which substantially complies with
the substantive requirements of Title 16, Part 703 of the Code of Federal
Regulations, the provisions of Subsection B of Section 3 [57-16A-3B NMSA
1978] of the Motor Vehicle Quality Assurance Act concerning refunds or
replacement shall not apply to any consumer who has not first resorted to
that procedure. The state attorney general may investigate and determine
that the informal dispute settlement procedure is fair and impartial and
conforms with the requirements of Title 16, Part 703 of the Code of
Federal Regulations.
History: Laws 1985,
ch. 220,
¤ 6.
57-16A-7
Resale of returned motor vehicle
No motor vehicle which has not been properly repaired pursuant to the
provisions of Subsection B of Section 3 [57-16A-3 NMSA 1978] of the Motor
Vehicle Quality Assurance Act, or pursuant to a similar law of another
state, may be resold in New Mexico unless the manufacturer provides full
written disclosure of the reason for the return to any prospective buyer.
History: Laws 1985,
ch. 220,
¤ 7.
57-16A-7.1 Notice of replacement or repurchase to used motor
vehicle dealers and consumers. (Effective January 1, 2004.).
A manufacturer, its agent, its authorized dealer or a used motor vehicle
dealer that has been ordered by judgment or decree to replace or
repurchase or that has replaced or repurchased a motor vehicle pursuant to
the Motor Vehicle Quality Assurance Act [57-16A-1 to 57-16A-9 NMSA 1978]
shall, before offering the motor vehicle for resale, attach to the motor
vehicle written notification indicating that the motor vehicle has been
replaced or repurchased. A consumer or a used motor vehicle dealer may
bring a cause of action against a person who removes the notification from
the motor vehicle, unless the manufacturer, its agent or its authorized
dealer or a used motor vehicle dealer, before completion of the sale, has
provided the purchaser with written notification by the manufacturer,
dealer or agent of the dealer, that the motor vehicle has been replaced or
repurchased.
57-16A-8
Limitation of action
Any action brought to enforce the provisions of the Motor Vehicle Quality
Assurance Act [57-16A-1 to 57-16A-9 NMSA 1978] shall be commenced within
eighteen months following the date of original delivery of the motor
vehicle to a consumer, or, in the event that a consumer resorts to an
informal dispute settlement procedure pursuant to Section 6 [57-16A-6 NMSA
1978] of the Motor Vehicle Quality Assurance Act, within ninety days
following the final action of the panel, whichever is later.
57-16A-9
Reasonable attorney fees
A consumer who prevails in an action brought to enforce the provisions of
the Motor Vehicle Quality Assurance Act [57-16A-1 to 57-16A-9 NMSA 1978]
shall be entitled to receive reasonable attorneys' fees and court costs
from the manufacturer. If a consumer does not prevail in such an action
and brings that action for frivolous reasons or in bad faith, the
manufacturer shall be entitled to receive reasonable attorneys' fees and
court costs from the consumer.
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