New Mexico Statutes

N.M. Stat. § 57-16-1 (2026)

Declaration of policy

✓ current as of May 2026
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The distribution and sale of motor vehicles in this state vitally affects the general economy of the state and the public interest and welfare of its citizens. It is the policy of this state and the purpose of this act to exercise the state's police power to ensure a sound system of distributing and selling motor vehicles and regulating the manufacturers, distributors, representatives and dealers of those vehicles to provide for compliance with manufacturer's warranties, and to prevent frauds, unfair practices, discriminations, impositions and other abuses of our citizens.

History: 1953 Comp., § 64-37-1, enacted by Laws 1973, ch. 6, § 1.

ANNOTATIONS

Compiler's notes. — The term "this act", referred to in the second sentence, means Laws 1973, Chapter 6, which appears as 57-16-1 to 57-16-6, 57-16-7 to 57-16-9, and 57-16-10 to 57-16-16 NMSA 1978. The reference probably should be to all of Chapter 57, Article 16 NMSA 1978.

Law reviews. — For comment, "State v. Galio: An Administrative Search?," see 9 N.M.L. Rev. 419 (1979).

Annual Survey of New Mexico Commercial Law, see 17 N.M.L. Rev. 219 (1987).

Am. Jur. 2d, A.L.R. and C.J.S. references. — 7A Am. Jur. 2d Automobiles and Highway Traffic §§ 394, 396.

Regulation or licensing of business of selling motor vehicles, 57 A.L.R.2d 1265, 7 A.L.R.3d 1173.

Validity and construction of statute regulating dealings between automobile manufacturers, distributors and dealers, 7 A.L.R.3d 1173, 82 A.L.R.4th 624, 51 A.L.R. Fed. 812.

Validity, construction, and application of state statutes regulating dealings between automobile manufacturers, dealers, and franchisees, 82 A.L.R.4th 624.

Notes of Decisions
Cited in 17 cases (1 in the last 5 years), 1985–2025 · leading case: Key v. Chrysler Motors Corp., 918 P.2d 350 (N.M. 1996).
Key v. Chrysler Motors Corp., 918 P.2d 350 (N.M. 1996). · cites it 8× “(Key) sued Chrysler Motors Corporation (Chrysler), alleging that Chrysler had unreasonably withheld its consent to the transfer of a Chrysler/Plymouth dealership franchise from the Borman Motor Company (Borman) to Key in violation of the New Mexico Motor Vehicle Dealers…”
GandyDancer, LLC v. Rock House CGM, LLC, 2019 NMSC 021 (N.M. 2019). · cites it 2× “”); § 57-12-2(D) (defining “unfair or deceptive trade practice”); cf.”
Gen. Motors Acceptance Corp. v. Anaya, 703 P.2d 169 (N.M. 1985). · cites it 3× “NMSA 1978, §§ 57-16-1 to 57-16-16 (Orig.Pamp.”
Key v. Chrysler Motors Corp., 889 P.2d 875 (N.M. Ct. App. 1995). · cites it 6× “It is the policy of this state and the purpose of this act to exercise the state's police power to ensure a sound system of distributing and selling motor vehicles and regulating the manufacturers, distributors, representatives and dealers of those vehicles to provide for…”
Presidential Hosp., LLC v. Wyndham Hotel Grp., LLC, 333 F. Supp. 3d 1179 (D.N.M. 2018). · cites it 2× “See N.M. Stat. Ann. §§ 57-16-1 to 16; N.M. Stat.”
Key v. Chrysler Motors Corp., 998 P.2d 575 (N.M. 2000). · cites it 2× “Facts and Background {2} In 1989, Jack Key filed a complaint for violation of the Motor Vehicle Dealers Franchising Act, NMSA 1978, §§ 57-16-1 to -16 (1973, as amended through 1997) (Franchising Act), against Chrysler, alleging that Chrysler was in violation of the Franchising…”
State v. Richardson, 832 P.2d 801 (N.M. Ct. App. 1992). · cites it 2× “In that case, the court held that a detachable windrower header unit was not a vehicle under the Motor Vehicle Dealers Franchising Act, NMSA 1978, Sections 57-16-1 to -16 (Repl.Pamp.1987) (Franchising Act).”
McAlpine v. Zangara Dodge, Inc., 183 P.3d 975 (N.M. Ct. App. 2008). · cites it 2× “McAlpine brought suit against Zangara on September 12, 2002, and alleged fraud, unfair trade practices, and violations of the Motor Vehicle Dealers Franchising Act, NMSA 1978, §§ 57-16-1 to -16 (1973, as amended through 2003).”
Two Old Hippies, LLC v. Catch the Bus, LLC, 784 F. Supp. 2d 1200 (D.N.M. 2011). “1978, §§ 57-16-1 through 57-16-16 (“MVDFA”) — Count III; violation of the New Mexico Unfair Trade Practices Act, N.”
State v. Eden, 779 P.2d 114 (N.M. Ct. App. 1989). “2d 501 (1985), the supreme court held that a windrower, a mechanical device used for farming, is not a motor vehicle within the meaning of the Motor Vehicle Dealers Franchising Act, NMSA 1978, Sections 57-16-1 to -16 (Repl. Pamp.1987) (the Act).”
Smith Mach. Corp. v. Hesston, Inc., 694 P.2d 501 (N.M. 1985). “MOTOR VEHICLE FRANCHISING The first issue we address is whether a piece of farm machinery called a windrow-er is a motor vehicle within the meaning of the Motor Vehicle Dealers Franchising Act, NMSA 1978, Sections 57-16-1 to -^(Franchising Act), and thus whether the Act applies…”
Two Old Hippies, LLC v. Catch the Bus, LLC, 807 F. Supp. 2d 1059 (D.N.M. 2011). “1978, §§ 57-16-1 through 57-16-16, Count III; violation of the New Mexico Unfair Trade Practices Act, N.”
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