NEW MEXICO LEMON LAW:
New Mexico Lemon Law
NM Statutes Chapter 57, Article 16A
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 motorvehicle 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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