SENATE BILL 240

46th legislature - STATE OF NEW MEXICO - first session, 2003

INTRODUCED BY

John Arthur Smith







AN ACT

RELATING TO FRANCHISE AGREEMENTS; PROVIDING THAT A FRANCHISE AGREEMENT INVOLVING RECREATIONAL VEHICLES INCLUDE RATES CHARGED BY A DEALER FOR PERFORMING WARRANTY SERVICE; AMENDING A SECTION OF THE NMSA 1978.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. Section 57-16-6.2 NMSA 1978 (being Laws 1995, Chapter 19, Section 2) is amended to read:

"57-16-6.2. RECREATIONAL VEHICLES--FRANCHISE

AGREEMENTS.--

A. Every recreational vehicle manufacturer, distributor or representative shall execute a written franchise or sales agreement with each of its recreational vehicle dealers. Each agreement shall include the following provisions:

(1) warranty service obligations, including rates charged by a dealer for performing warranty service;

(2) specific territory or market area designation;

(3) grounds for termination;

(4) repurchase obligations;

(5) sales volume and performance; and

(6) dispute resolution procedures.

B. Notwithstanding the provisions of Subsection A of this section, a dealer and manufacturer, distributor or representative may mutually agree not to include the provisions listed in Paragraphs (2) through (6) of Subsection A of this section; provided, however, a written declaration stating which of the provisions were intentionally omitted and not applicable shall be incorporated into the written agreement."

Section 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2003.

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