N.M. Stat. » Chapter 57 — Trade Practices and Regulations
New Mexico Statutes

N.M. Stat. § 57-16-2 (2026)

Application of act

✓ current as of May 2026
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The provisions of this act shall apply to all persons, manufacturers, representatives, distributors and dealers and to all written or oral agreements between a manufacturer, distributor or representative with a motor vehicle dealer including, but not limited to, the franchise offering, the franchise agreement, sales of goods, services or advertising, leases or mortgages of real or personal property, promises to pay, security interest, pledges, insurance contracts, advertising contracts, construction or installation contracts, servicing contracts and all other such agreements in which the manufacturer, distributor or representative has any direct or indirect interest. History: 1953 Comp., § 64-37-2, enacted by Laws 1973, ch. 6, § 2.

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.

Inapplicable to prospective franchisees. — This article does not govern manufacturers' dealings with prospective franchisees, nor does it provide in explicit terms protection for that class. Key v. Chrysler Motors Corp., 1996-NMSC-038, 121 N.M. 764, 918 P.2d 350.

Taken as a whole, this article does not afford protection to every prospective purchaser of an automobile franchise; the Act provides for standing in broad terms, but it links standing to forbidden conduct in specific terms. Key v. Chrysler Motors Corp., 1996- NMSC-038, 121 N.M. 764, 918 P.2d 350.

Reducing award of costs based on financial disparity between parties. — The district court abused its discretion when, without evidence, it reduced a cost award to defendant because of the financial disparity between the parties, plaintiff's perceived inability to pay all of defendant's costs, and the chilling effect that a large cost award might have on future litigation under this article. Key v. Chrysler Motors Corp., 2000- NMSC-010, 128 N.M. 739, 998 P.2d 575.

This article (57-16-1 to 57-16-16 NMSA 1978) applies to manufacturers, representatives, distributors and dealers of self-propelled agricultural machines and equipment which may travel upon the public highways of New Mexico. 1974 Op. Att'y Gen. No. 74-25.

Notes of Decisions
Cited in 3 cases, 1985–1996 · leading case: Key v. Chrysler Motors Corp., 918 P.2d 350 (N.M. 1996).
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Key v. Chrysler Motors Corp., 918 P.2d 350 (N.M. 1996). · cites it 10× “) Section 57-16-2. In addition to any other judicial relief, any person who shall be injured in his business or property by reason of anything forbidden in this act may sue therefor in the district court and shall recover actual damages by him sustained, and the cost of suit,…”
Key v. Chrysler Motors Corp., 889 P.2d 875 (N.M. Ct. App. 1995). · cites it 4× “" NMSA 1978, § 57-16-2 (Repl.Pamp.1987) (emphasis added).”
Smith Mach. Corp. v. Hesston, Inc., 694 P.2d 501 (N.M. 1985). · cites it 2× “The Act applies to “all persons, manufacturers, representatives, distributors and dealers and to all written or oral agreements between a manufacturer, distributor or representative with a motor vehicle dealer * * NMSA 1978, § 57-16-2. The Act defines “motor vehicle” as “every…”
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