Section 57-23-1 – Short title.

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. ANNOTATIONS Am. Jur. 2d, A.L.R. and C.J.S. references. — 62B Am. Jur. 2d Private Franchise Contracts §§ 506 to 748.

Section 57-23-2 – Definitions.

As used in the Franchise Termination Act: 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 […]

Section 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, […]

Section 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 […]

Section 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 […]

Section 57-23-6 – Late payment.

If a supplier does not make the payment required by the Franchise Termination Act 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 […]

Section 57-23-7 – Security interest.

The Franchise Termination Act does not affect a supplier’s security interest in inventory. History: Laws 1985, ch. 229, § 7.

Section 57-23-8 – Application of bulk transfer law.

The provisions of the Uniform Commercial Code – Bulk Transfers [repealed] do not apply to a transaction between a supplier and dealer that is required by the Franchise Termination Act. History: Laws 1985, ch. 229, § 8. ANNOTATIONS Bracketed material. — The bracketed material was inserted by the compiler and is not part of the […]