New Mexico Automotive Dealers Association
  • Services
    • Automotive Consumer Protection Program (AUTOCAP)
    • Advertising Pre-Review
    • VIN Class Registration and Instructions
    • Auto Dealer and Auto Recycler License Renewal Applications
  • Statutes | Rules | Regulations
    • Franchise Act
    • AG Damage Disclosure Regulations
    • New Car Lemon Law
    • 12.2.13 Requirements for Spot Delivery of Motor Vehicles
    • Tax Lien Responsibility
    • Used Car Lemon Law
    • Damage Disclosure Laws
    • 66-4-2.2. Off-site sales.
    • 57-16-6 Obligations; statement of Compensation.
    • 30-16D-3. Fraudulently Obtaining a Vehicle or Motor Vehicle.
    • 66-3-6. Temporary registration permits, demonstration permits and transport permits.
    • 66-3-401. Operation of vehicles under dealer plates.
  • Links
    • NADA >
      • NADA PAC
    • New Mexico State Legislature >
      • Find Your Legislator
      • Legislative Bill Finder
    • New Mexico State Statutes
    • New Mexico Administrative Code
    • State of New Mexico Taxation and Revenue
    • MVD New Mexico
    • Office of the New Mexico Attorney General
  • Contact Us
    • NMADA Mission Statement
  • 2020 Legislative Conference
Return to Franchise Act

57-16-8. Unreasonable restrictions; site control agreements; exclusive use agreements.pdf
File Size: 91 kb
File Type: pdf
Download File

57-16-8 Unreasonable restrictions; site control agreements; exclusive use agreements.

     A.   It is unlawful to, directly or indirectly, impose unreasonable restrictions on the motor vehicle dealer or franchise relative to transfer, sale, right to renew, termination discipline, noncompetitive covenants, site-control whether by sublease, collateral pledge of lease or otherwise, right of first refusal to purchase, option to purchase, compliance with subjective standards and assertion of legal or equitable rights. 

     B.   Unless a separate agreement lasting no more than fifteen years has been voluntarily entered into for separate consideration, it is unlawful to, directly or indirectly, require a site control agreement or exclusive use agreement as a condition of: 
           (1)   awarding a franchise to a prospective motor vehicle dealer; 
           (2)   adding a line make or franchise to an existing dealer; 
           (3)   renewing the franchise of an existing dealer; 
           (4)   approving the relocation of an existing dealer's facility; or 
           (5)   approving the sale or transfer of ownership of a franchise. 
     C.   As used in this section, "site control agreement" or "exclusive use agreement" means any agreement that has the effect of: 
           (1)   requiring a dealer to establish or maintain exclusive dealership facilities; 
           (2)   restricting the ability of a dealer or a dealer's lessor to transfer, sell, lease or change the use of the dealership premises; or 
           (3)   preventing or attempting to prevent a dealer from acquiring, adding or maintaining a sales or service operation for another line make of motor vehicles at the same or expanded facility at which the dealer currently operates a dealership, provided that the dealer complies with any reasonable facilities requirements of the manufacturer, successor manufacturer or distributor.