A. If on termination of a franchise the dealer delivers to the manufacturer or distributor the inventory, vehicle brand-specific tools, signage and other specialized systems, equipment and real estate required by the manufacturer that was purchased from the manufacturer or distributor and that is held by the dealer on the date of termination, the manufacturer or distributor shall pay to the dealer:

(1) the dealer cost of the new, unsold and undamaged motorcycles and motor vehicles from the current and immediately preceding two model years and purchased from the manufacturer or distributor within fourteen months prior to receipt of a notice of termination;

(2) an amount equal to ninety-five percent of the current price of new, unused and undamaged motorcycle attachments and motor vehicle repair parts;

(3) an amount equal to an additional five percent of the current price of new, unused and undamaged motorcycle attachments and motor vehicle repair parts, unless the manufacturer or distributor performs the handling, packing and loading of the parts, in which case no additional amount is required under this paragraph;

(4) the fair market value, determined by appraisal as if installed for continuous use in an operating dealership, of all vehicle brand-specific special tools, signage and other specialized systems and equipment required by the manufacturer or distributor for dealership operations. The fair market value will be determined by a qualified independent appraiser agreed upon by the manufacturer or distributor and the dealer unless the fair market value is mutually agreed upon by the parties; and

(5) the economic loss to the dealer resulting from idled or underused dealer facility real estate due to a manufacturer's involuntary termination, determined by any reasonable means, including appraisal, unless the dealer is in violation of the franchise agreement. Economic loss is presumed to be at least equal to the value of two years of dealer facility fair market rental value, as if the facility were an operating dealership; real estate property tax; and property insurance.

B. The manufacturer or distributor may subtract from the sum due under Subsection A of this section the amount of debts owed by the dealer to the manufacturer or distributor. The manufacturer or distributor and the dealer are each responsible for one-half of the cost of delivering the inventory to the manufacturer or distributor.

C. The manufacturer or distributor shall pay the amount due under this section before the sixty-first day after the day that the manufacturer or distributor receives inventory from the dealer.

D. On payment of the amount due under this section, title to the inventory is transferred to the manufacturer or distributor.

E. The provisions of this section shall not apply to recreational travel trailer or motor home manufacturers or dealers.

History: 1978 Comp., § 57-16-9.2, enacted by Laws 1991, ch. 49, § 2; 1993, ch. 167, § 3; 2010, ch. 38, § 4; 2010, ch. 40, § 4.

The 2010 amendment, effective March 8, 2010, in Subsection A, after "distributor the inventory", added "vehicle brand-specific tools, signage and other specialized systems, equipment and real estate required by the manufacturer"; in Subsection A(1), after "undamaged motorcycles", deleted "current year model" and added "and"; after "motor vehicles", deleted "and motor vehicles" and added "from the current and immediately preceding two model years and"; and after "manufacturer or distributor", deleted "six" and added "within fourteen"; and added Paragraphs (4) and (5) of Subsection A.

Laws 2010, ch. 38, § 4 and Laws 2010, ch. 40, § 4 enacted identical amendments to this section. The section was set out as amended by Laws 2010, ch. 40, § 4. See 12-1-8 NMSA 1978.

The 1993 amendment, effective June 18, 1993, substituted "Motor vehicle" for "Motorcycle" in the section heading; in Subsection A, deleted "motorcycle" preceding "franchise" in the introductory language, added the language beginning "current model year" to the end of Paragraph (1), inserted "motor vehicle" and added "and" to the end, in Paragraph (2), and inserted "motor vehicle" in Paragraph (3); and added Subsection E.