6% Rule - NM State Statute 57-12-6
Misrepresentation of motor vehicles; penalty.
A. The willful misrepresentation of the age or
condition of a motor vehicle by any person, including regrooving tires or
performing chassis repair, without informing the purchaser of the vehicle that
the regrooving or chassis repair has been performed, is an unlawful practice
within the meaning of the Unfair Practices Act, unless the alleged
misrepresentation is based wholly on repair of damage, the disclosure of which
was not required pursuant to Subsection C of this section. the failure to
provide an affidavit pursuant to Subsection B of this section when there has
been repair for which disclosure is required shall constitute prima facie
evidence of willful misrepresentation.
B. Except as provided in Subsections C and D of this
section, a seller of a motor vehicle shall furnish at the time of sale of a
motor vehicle an affidavit that:
(1) describes the vehicle;
and
(2) states to the best of the seller's
knowledge whether there has
been
an alteration or chassis repair due to wreck damage.
C. No affidavit shall be required pursuant to this
section if the flat rate manual cost of the alteration or chassis repair is
less than six percent of the sales price of the vehicle.
D. In the case of a private-party sale of a vehicle,
an affidavit shall be furnished only upon the request of the purchasing party.
E. Notwithstanding the provisions of Subsection D of
Section 57-12-10 NMSA 1978, the award of three times actual damages as provided
for in that section shall be in lieu of any award of punitive damages based
only on those facts constituting the unfair or deceptive trade practice or
unconscionable trade practice.
F. Any person who violates this section is guilty of a
misdemeanor.
The
1991 amendment, effective June 14, 1991, in Subsection A, added
the language beginning with "unless the alleged misrepresentation" at
the end of the first sentence and added the second sentence; added Subsections
C and E; redesignated Subsection C as Subsection D and Subsection D as
Subsection F and made a minor stylistic change in Subsection B.
The
1995 amendment, effective June 16, 1995, substituted
"Subsections C and D of this Section" for "this subsection"
in the introductory paragraph of Subsection B; in Subsection D, substituted the
language beginning "the flat rate manual" for "the vehicle is a
new vehicle and the cost of the alteration or chassis repair is less than three
hundred dollars ($300)" and deleted the former second sentence, defining
"new vehicle"; and deleted "to another private party"
following "vehicle" and "private" following
"purchasing" in Subsection D.
Unfair
Practices Act. - See 57-12-1 NMSA 1978 and notes thereto.
"Altered"
construed. - Within the context of Subsection B, goods are
"altered" if, as measured against the reasonable expectations of the
consumer, the characteristics or value of the motor vehicle are affected in a
meaningful way. Hale v. Basin Motor Co., 110 N.M. 314, 795 P.2d 1006 (1990).
"Due to wreck damage" construed. - the phrase
"due to wreck damage" in Subsection B(2) modifies only "chassis
repair" and not "alteration". Hale v. Basin Motor Co., 110 N.M.
314, 795 P.2d 1006 (1990).
Alteration
found. - Evidence showing that right front fender was replaced,
right door frame was straightened, holes were drilled in the door panel to pull
out a dent, sheet metal in the damaged area was ground down and resurfaced with
body filler, and the damaged area was repainted was sufficient to support
finding that vehicle was altered with the meaning of Subsection B. Hale v.
Basin Motor Co., 110 N.M. 314, 795 P. 2d 1006 (1990).
Law
reviews. - For article, "consumer Class Actions Under the
New Mexico Unfair Practices Act", see 4 N.M. L. Rev. 49 (1973).
(c)
1978-1998 by The State of New Mexico
and LEXIS Law Publishing
